Which Private Health InsuranceWhat private health insurance
In April, private health insurance premium will increase by 3.25 percentage points.
It is hoped that private health insurance companies will take in more Australians and that current members will stop lowering policy levels after the administration says next year's premium growth will be 3.25 percent on aggregate - the slowest in 18 years. Although private health insurance companies had to pay 20.5 billion dollars for health services last year, 3.4 percent more than in the previous year, insurance companies are under increasing strain because clients are turning their backs on the industry.
Growing doubts about the value of private health insurance
Sources: 12 month to August 2014, n = 50,524, 12 month to August 2018, n = 50,182. By 2014, almost two-thirds (65.8%) of the fund's members approved that "private health insurance is essential". Since then, it has continued to fall each year to the present 56.9% in August 2018.
All of these indicators have had a negative tendency since 2014. Even though the vast majority of the members of the funds (72.1%) still believe that private health insurance is primarily about "knowing that you can meet the costs of major health care costs when they arise", it has dropped from 77 to 77.
Zero percent in 2014. 9%, was for "health insurance gives me security", but this also shows a progressive decrease compared to the 74th. Zero percent in 2014. Sources: 12 month to August 2014, n = 50,524, 12 month to August 2018, n = 50,182. Australian 14+ with health insurance. Twelve month to August 2014, n = 7,971, twelve month to August 2018, n = 7,942 The largest shift in attitudes in the last four years has been the 8.9% point drop (to 56.9%) for "it is important to have private health insurance".
Note that there are no significant changes to this attitude in the capitals in comparison to Australia. There are some large intergenerational disparities in the attitude to private health insurance that need to be taken into consideration when selling to this very different group.
One example of this is the high consensus (77.2%) among pre-boomers that "it is imperative to have private health insurance," as opposed to only 38. 2 percent for Gen Z. "It is important to have private health insurance" Source: 12 month to August 2018, n = 50,182. Australian 14+ with private health insurance.
Twelve-month period to August 2018, n = 7,942. Further disparities are the millennials, which are an important source of private health insurance revenue as they move into the phase of their lives where they tend to have more responsibility towards family and mortgage owners. And this is mirrored in the fact that they are far above avarage when it comes to approving topics related to the costs of health insurance, such as: "I want the least expensive and don't care"; "the only thing to have them is not to pay additional taxes"; and "I don't see much value in having them".
The youngest generations are the least active in private health insurance, as is to be anticipated. Gene Z, who are 14 to 27 years old in this study, have very low health concerns and are more likely to depend on "recommendations from boyfriends and family" when selecting a funds.