Premium quality: Industry revenue and profit have increased as premiums have risen

The Health Insurance industry is an integral part of the Australian health system, providing insurance coverage for an estimated 45.5% 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. Industry revenue is expected to grow at an annualised 4.6% over the five years through 2018-19, to reach $26.2 billion. This growth is largely due to premium revenue rising steadily. Industry revenue is expected to increase by 3.0% in the current year.Higher private health insurance premiums have bolstered premium income and industry revenue over the past five years...read more.

Industry Statistics & Market Size
Revenue
$26bn
Annual Growth 14-19
4.6%
Forecast Growth 19-24
Profit
Employment
13,671
Businesses
37

Industry Threats & Opportunities

  • Higher private health insurance premiums have bolstered premium income and industry revenue
  • The rising cost of health care has prompted older people to maintain or increase their cover
  • Increasing premiums and rising investment returns are expected to continue driving growth
  • Industry Report - Industry Locations Chapter

    The geographic spread for the Health Insurance industry is based on information released by the Australian Prudential Regulation Authority. Coverage is represented by the number of people with health insurance coverage for hospital treatment. The geographic spread of the industry is largely correlated with the geographic distribution of the population, with the Northern Territory having the lowest coverage on a per capita basis and the Australian Capital Territory having the highest.In Western Australia, the density of medical facilities (i.e. the number per square kilometre) is much lower than in Victoria, due to Western Australia's amount of land and small population. Gen...purchase to read more.

    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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    What's in this report

    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 operators 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

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

  • Current Performance
  • Premiums and profit
  • Medicare and membership
  • Competition and market share
  • Health insurance rebate
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulation
  • Cutting costs
  • Table: Health Insurance Industry Revenue Outlook

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

  • 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
  • Population trends
  • Household income
  • Taxation incentives

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

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Benefit payments
  • Management expenses
  • 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
    Bupa ANZ Insurance Pty Ltd, Medibank Private Limited, Hospitals Contribution Fund of Australia Limited, NIB Holdings Ltd, HBF Health Limited,
  • Table: Bupa ANZ Insurance Pty Ltd - 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

  • 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
    Table: Industry Data for the Health Insurance Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Combined Ratio
  • The sum of the loss ratio and expense ratio, representing the profitability of a company, excluding investment income.
  • 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.
  • What Our Customers Say

    Why buy this report?

    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.

    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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