Industry Analysis & Industry Trends
The Health Insurance industry is an integral part of the Australian health system, providing coverage to more than 45% of the population. Health insurers generate revenue from the sale of health insurance policies (premium income) and the investment of premium reserves (investment income). Premium income tends to account for more than 96% of revenue, but this changes from year to year. In 2012-13, industry revenue is forecast to grow 4.4% to reach $18.6 billion on the back of strong premium income. In the five years through 2012-13, industry revenue is expected to grow at a compound annual rate of 5.0%.
The gain in premium income will be propelled by higher private health insurance (PHI) prices and membership. This has led to premium income growth estimated at an annualised 4.4%... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Until the beginning of 2000, the Health Insurance industry was in a decline stage of its life cycle. This was indicated by modest growth in revenue and industry value added, significant annual declines in the number of people covered by PHI, and a falling number of enterprises. Furthermore, most government initiatives had failed to significantly increase membership levels. However, the industry now finds itself in a growth phase. Industry value-added, the industry's contribution to the economy is forecast to grow at 8.1%, a faster pace than the overall economy that is projected to grow at a compound annual rate of 2.4% in the 10 years through 2017-18. This is largely a result of the industry's poor performance in the year immediately preceding the current 10 year period; 2007-08... purchase to read more