Southern Cross paid out 90c for every dollar it received in premium during the 2017 financial year, which is above the industry average, the health insurer has reported.
The Health Funds Association of New Zealand (HFANZ) has released its latest national health claims data which shows that private providers had collectively paid out $1.2 billion in total claims for the 12 months ending September 30, up 6.7%, or $74 million, on the September 2016 figures.
Southern Cross, a not-for-profit, said while it had 63% of the health insurance market, it had paid out 73% of the country’s health insurance claims.
Southern Cross chief executive Nick Astwick told Insurance Business that health insurance give Kiwis choice over their care and where they receive it.
“It gives them access to care they might not otherwise be able to afford, and it allows them to receive that care promptly, which can prevent longer term health issues,” he said.
Astwick said, from the workplace point-of-view, healthy and engaged employees were more likely to perform better, and the value to businesses offering health insurance as an employee benefit could include increased productivity, reduced absenteeism and increased employee engagement and loyalty.
HFANZ said a significant chunk of claims funded healthcare for the over-60 age group, which jumped 7.7% to $532 million over the year to the end of September, the first time it has topped the half billion-dollar mark.
The data also highlighted that a record $321 million in claims was paid out for the September quarter, up 7.3% on the same period in 2016 – it’s also the-first time quarterly claims have exceeded $300 million.
During the 2017 financial year, Southern Cross grew its membership by 4% to more than 853,000 people. The company announced yesterday afternoon it had taken out a “hat trick of golds” at the Reader’s Digest annual quality service awards; winning the health, pet and travel insurance categories.
Southern Cross chairman Greg Gent said customer experience is something companies talk about every day but public opinion is the true test.
“These awards are decided by the New Zealand public, and the results clearly show that customers are experiencing a consistently high quality of service from all three businesses in the Southern Cross Healthcare Group,” he claimed.
The awards are judged by 1,500 people who are asked to rate their service experience in 41 categories.
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