Sydney, 14th June 2024 – Leading financial services research firm Investment Trends has published the 2024 Consumer Insurance Needs Report, focusing on health insurance. This comprehensive report provides key insights into the health insurance landscape in Australia, revealing significant trends, opportunities and consumer preferences.
The latest report shows that 2.6 million Australians currently without coverage are interested in obtaining it. This ready market, predominantly aged 18-34 with an average income of $78,000 represents a significant opportunity for insurers to expand their customer base. This group is found to have clear information needs when selecting their insurer with policy pros and cons (49%), discounts (48%), and the impact of government policies (41%) being the top consideration drivers.
“2.6 million Australians interested in obtaining private health cover, in addition to the 10.3 million that already do so, is a substantial opportunity,” said Irene Guiamatsia, Head of Research at Investment Trends. “Providers that can comprehensively address these information needs are well positioned to seize it.”
The report also highlights that, in the whole, consumers find the process of applying for health insurance to be reasonably streamlined. Tracking the application status (51% ease) and filling out application forms (44% ease) are relatively straightforward, however the provision of supporting documentation (only 5% ease) appears to be a significant pain point.
How much effort was involved in each step of the application process for private health cover [with your main provider]? Among current health insurance users who have used a main health insurance provider for more than 2 years [n=69]
Copyright 2024: Investment Trends: 2024 Consumer Insurance Needs Report – Health Insurance
Health insurance makes up the largest volume of claims (84%) made by consumers last year. The majority of these claims are made through their insurer’s online portal (56%) or on premises at the medical facility or clinic providing treatment (34%). Claims made through the online chat service (only 3%) have the quickest outcomes, but the channel is severely underutilised, highlighting an opportunity to better promote.
“The experience of health insurance policyholders illustrates a strong correlation between speed of claims processing and client satisfaction. While health insurance users are more satisfied in all areas compared to GI or Life insurance users, they still want more – improved information sharing, more digital interaction, additional benefits, and a broader care provider network. Prioritising these enhancements is crucial to retaining existing clients and securing the next wave of health insurance policy holders,” concluded Guiamatsia.
About the report
The Investment Trends 2024 Consumer Insurance – Health Insurance Report provides a detailed analysis of the Consumer General Insurance industry, examining the sentiment, attitudes and needs of Australian consumers. Based on a quantitative online survey of Australian consumers conducted by Investment Trends from December 2023 to January 2024. Total number of responses after data cleaning and validation: n=5,385.
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