GlobalData, a leading data and analytics company, has released its latest Insurance Database, revealing the top health insurer in the Australian market for 2022.
The database showed that Medibank had regained its position as the leading Australian health insurer in 2022. Its direct written premiums (DWP) grew at a compound annual growth rate (CAGR) of 2.1% during 2018-2022, making it the top Australian health insurer for 2022 and ending the six-year dominance of Bupa, which had only 0.2% CAGR growth. In 2022, Medibank's health insurance DWP grew by 2.8%, while Bupa's DWP declined by 0.7%.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said Medibank's performance in 2022 was driven by “competitive premium pricing and a growth in the number of policyholders due to increased health awareness among young and first-time buyers.”
Medibank hospital plans, which start at $101.8 per month, are the lowest among health insurers in Australia. The company also registered the lowest increase in average premiums in the last 21 years compared to other health insurers, which has kept its premium prices competitive in the market.
This trend continued in 2022, as Medibank decided to offer two rounds of premium deferrals and provided cashbacks to policyholders through premium relief, ancillary limit rollovers, and financial hardship support.
Additionally, the insurer has leveraged the customer base from its other brand Medibank Health, which provides healthcare services, to support its growth. As a result, the number of policyholders of Medibank increased by 4.6% in 2021, followed by a 3.2% increase in 2022.
“Through Medibank Health, the company has taken a number of initiatives to provide affordable health services that have supported customer retention and new business growth,” Sahoo said.
Despite experiencing a massive cyberattack that extended to one of its brands, Medibank still has a positive outlook for 2023.
“Medibank is expected to maintain the leading position in the Australian health insurance market in 2023, driven by its competitive premium pricing, affordable healthcare solutions, and an increase in the number of policyholders,” Sahoo said.
