Picture of health: Rising premiums have boosted revenue, despite declining memberships

The Health Insurance industry has recorded steady growth over the past five years. Rising premiums have underpinned industry growth over the period. Industry operators have reported an increasing volume of claims paid over the past five years, on the back of a rising population aged 50 and over. This has forced health insurers to raise premiums to maintain profitability. Industry operators have also recorded growth despite private health insurance membership numbers declining over the past five years. Industry revenue is expected to increase at an annualised 4.2% over the five years through 2017-18, to total $1.5 billion. Younger demographics taking up private health insurance through employer-subsidised group plans is expected to contribute to industry revenue growing by 5.5%...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
4.2%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
965
Businesses
29
Market Share of Companies

Industry Threats & Opportunities

  • Rising premiums have underpinned industry growth, despite an increasing volume of claims
  • Industry operators have been forced to raise premiums to sustain revenue growth
  • Premiums are expected to continue rising and contributing to industry revenue growth

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    Industry Report - Industry Investment Chapter

    The Health Insurance industry is characterised by low capital intensity. For every dollar paid as wages, an estimated $0.12 is spent on capital investment, reflecting the industry's labour-intensive nature. Skilled and knowledgeable staff are typically required to provide customer service and sell policies, given the complex nature of industry products. Many tasks are also labour-intensive such as processing claims, managing customer accounts and other administrative tasks. The industry's labour intensity is also slightly understated as some sales functions are typically outsourced, and companies incur expenses for acquiring policies. Industry operations also tend to be centralised, with health insurers often operating from a single location. Hea...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

  • Financial position of the company (as against financial structure)
  • Age or risk profile of members
  • Having a cost effective distribution system

    • IBISWorld analysts also discuss how external factors such as Private health insurance membership and Demand from health care and social assistance in the Health Insurance industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Health Insurance in New Zealand Industry?

    Industry operators primarily provide health insurance. Firms in the industry underwrite policies covering hospital, medical, dental, pharmaceutical and funeral expenses.

    Industry Products
  • Elective surgery cover
  • Comprehensive cover
  • Minor medical cover
    • Industry Activities
  • Health insurance provision
  • Dental insurance provision
  • Funeral benefit 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
  • Demand from health care and social assistance
  • Population aged 50 and older
  • Real household disposable income

    • Current Performance
  • The role of private health insurance
  • Operating landscape
  • Chart: Revenue Growth

    • Industry Outlook
  • Operating landscape
  • The future of the health system
  • 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 in New Zealand

    • Key Selling Industries
  • Dental Services in New Zealand
  • General Practice Medical Services in New Zealand
  • Hospitals in New Zealand
  • Specialist Medical Services in New Zealand

    • Products & Services
  • Elective surgery cover
  • Comprehensive cover
  • Minor medical cover
  • Chart: Health Insurance Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Individuals aged 40 to 59
  • Individuals aged 20 to 39
  • Individuals aged 19 and under
  • Individuals aged 60 and over
  • 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
  • Profit
  • Claims expense
  • Wages
  • Other
  • 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

    Southern Cross Medical Care Society, nib nz limited,
  • Table: Southern Cross Medical Care Society - financial performance
  • Table: nib nz 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Elective Surgery
  • Surgical procedures that are not considered to be urgent or an emergency.
    • Loss Ratio
  • Calculated by claims expenses as a percentage of premium income, representing a company's gross margin or underwriting profitability.
    • Premiums
  • Regular payments made by health insurance policyholders to insurers.
    • What Our Customers Say
    Why buy this report?

    The Health Insurance in New Zealand market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 in New Zealand:
    • 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 in New Zealand 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 in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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