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Insurance firm Southern Cross has confirmed a rise in premiums this year.
A report by NZ Herald detailed the changes to Southern Cross’s insurance policies. It noted the insurer’s announcement of it intention to increase premiums during its AGM in December and also highlighted Southern Cross’s move to raise the average premium for each age group by around 6% last year.
Now, Southern Cross spokeswoman Joanne Mahon has been quoted as saying there will be further increases for individuals this year.
“On an individual level, each member will this year experience a premium change that may be significantly different to that average,” Mahon told the publication. “This is due to a number of factors, the biggest of which is ageing. Each year as each member gets older their premium will increase, reflecting a person’s greater likelihood of needing to claim.”
Mahon explained that those aged over 65 make up 13% of Southern Cross membership, yet account for 36% of claims costs. She noted Southern Cross Health Society is currently working through a change in its charging structure and is gradually transitioning its common rating approach for members aged 65 and over (in one-year increments) to come into effect at 75 by 2025.
“The intention of this was to give certainty to members, so they could budget for their health insurance over their retirement years,” Mahon added.
In addition, NZ Herald reported on the case of a Kiwi couple, who were notified on January 01 that the monthly premium for their joint Southern Cross Health Insurance policy would be increasing from $251.88 to $301.48. This meant a 19.7% increase or $595 over the course of 12 months. The increase in costs reportedly included 10% “no claims” discounts for the couple, aged 64 and 62.
