The Health Insurance Market - AU - customers and competitors

Australian health insurance: A $30 billion industry needing member growth

The Australian PHI industry presents a mixed picture. While profitability is strong, stagnant market penetration and affordability concerns require attention.

The Australian private health insurance (PHI) industry covers over 14.7 million people, representing roughly 55% of the population (as of June 30, 2023).

This figure has seen minimal growth, despite a significant 110% increase in industry net profits between July 2022 and June 2023, according to the ACCC.

Revenue is also expected to reach $30 billion by 2024, albeit with a modest annualized growth rate of 0.1%. The sector employs over 16,800 individuals.

A key challenge lies in attracting the younger Australians the industry relies on. As payers, but not significant claimers, health insurers must find ways to meet their next generation of customers where they are, and for services they are willing to pay for.

This report dives deeper into the market, exploring:

• Consumer trends: Unveiling the evolving needs and online behaviour of health-conscious Australians.
• Competitive landscape: Analysing current strategies and identifying differentiation opportunities.
• Data-driven insights: Providing actionable recommendations to capture market share and achieve sustainable growth.
• Low hanging fruit: the sports and exercise that Australians are engaging in that have gone largely ignored by health funds so far.

Brands mentioned: Medibank, BUPA, AHM, NIB, HCF, HBF, GMHBA, Frank, Australian Unity, iSelect, Compare The Market, Compare Health Insurance, Canstar, Choice, Compare Club and PrivateHealth.gov.au