Alive and kicking: Increasing membership and higher premiums stimulate revenue growth

IBISWorld’s Health Insurance market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.


Industry Threats & Opportunities

  • Industry revenue is forecast to grow due to rising premiums and stable investment returns
  • The rising cost of healthcare has reduced profit margins, despite yearly premium increases
  • Consistently rising premiums and solid investment returns are expected to continue driving growth

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    Industry Analysis & Industry Trends

    The Health Insurance industry is an integral part of the Australian health system, as it provides insurance coverage for over 47% of the population. Health insurers generate revenue from selling health insurance policies (premium revenue) and investing premium reserves (investment revenue), with premium revenue generally accounting for over 95% of industry revenue. Overall, industry revenue is forecast to grow at an annualised 6.4% over the five years through 2016-17, to reach $23.8 billion, largely on the back of premium revenue steadily rising. This includes industry revenue growth of 4.6% in the current year.

    Higher private health insurance (PHI) premiums and membership numbers have bolstered premium income over the past five years...

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    Industry Report - Industry Products Chapter

    The industry's product segmentation is based on total people covered under the different policy types. Combined cover policies typically generate the highest amount of revenue per policy for health insurers.

    Combined cover

    Most individuals and households with private health insurance (PHI) hold combined cover policies for both general and hospital treatments. The number of people with combined coverage has grown substantially over the past five years due to Lifetime Health Cover (LHC) loading. Combined cover represents the most cost-effective way for consumers to avoid LHC loading and access other services such as dental, physiotherapy and optical. Thi..

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    Additional Insights for the Health Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Health Insurance Industry are

  • Management of a high-quality assets portfolio
  • Financial position of the company (as against financial structure)
  • Having a cost-effective distribution system
  • IBISWorld analysts also discuss how external factors such as Private health insurance membership and Population aged 50 and older in the Health Insurance industry impact industry performance..

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    Industry Products

    What is the Health Insurance Industry?

    Industry operators primarily underwrite insurance policies relating to health and medical risks. Underwriting insurance policies involves assuming risks and assigning premiums. Industry businesses provide insurance cover for hospital, medical, dental, pharmaceutical and funeral expenses or costs. Industry firms generate revenue through insurance underwriting and investing premiums.

    Industry Products
    General treatment cover
    Hospital treatment cover
    Combined cover
    Industry Activities
    Dental insurance provision
    Funeral benefit provision
    Health insurance provision

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Private health insurance membership
  • Population aged 50 and older
  • Real household disposable income
  • year bond rate

  • Current Performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Table: Health Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Health Insurance Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Ambulance Services
  • Chiropractic and Osteopathic Services
  • Dental Services
  • General Hospitals
  • Optometry and Optical Dispensing
  • Physiotherapy Services
  • Psychiatric Hospitals
  • Specialist Medical Services

  • Products & Services
  • Combined cover
  • General treatment cover
  • Hospital treatment cover
  • Chart: Health Insurance Industry Products and Services Segmentation

  • Demand Determinants
  • Medicare coverage
  • The cost of PHI
  • Regulation
  • Ageing population
  • Household income
  • Taxation incentives

  • Major Markets
  • Families
  • Singles
  • Couples
  • Single parents
  • Chart: Major Market Segmentation for the Health Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Health Insurance

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Health Insurance Industry

  • Industry Globalization
    Major Companies
    BUPA Hi Holdings Pty LimitedMedibank Private LimitedHospitals Contribution Fund of Australia LimitedNIB Holdings LtdHBF Health Limited
  • Table: BUPA Hi Holdings Pty Limited - financial performance
  • Table: Medibank Private Limited - financial performance
  • Table: Hospitals Contribution Fund of Australia Limited - financial performance
  • Table: NIB Holdings Ltd - financial performance
  • Table: HBF Health Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Health Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Health Insurance Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Bracket Creep
  • This occurs when rising incomes push consumers into different tax brackets or income thresholds.
  • Combined Ratio
  • The sum of the loss ratio and expense ratio, representing the profitability of a company, excluding investment income.
  • Coupon Payment
  • An interest payment received by the bondholder at specified intervals before the bond matures.
  • Expense Ratio
  • Represents management and other expenses as a percentage of premium income and indicates the relative expense of administering a book of insurance policies.
  • Loss Ratio
  • Represents benefit expenses as a percentage of premium income and signifies a company's gross margin, or underwriting profitability.
  • Underwriting
  • A process of measuring risk and determining the premium that needs to be paid to insure that risk.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Health Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Health Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Health Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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