The Australian private health insurance sector has been a beneficiary of COVID courtesy of a number of factors but an obvious one being lower claims as many of us endure ongoing lockdowns. The pandemic has led a lot of Australians to consider private health cover for the first time with Medibank Private enjoying their highest growth in membership for 10-years, a breath of fresh air after continuous declines since 2015.
The healthy backdrop for the likes of HCF and NIB since COVID is not fresh news but today we consider their outlook within a sector that’s gaining strength almost by the week, a couple of obvious hurdles need clearing for the sector to look exciting in 2022/23:
- The gap between premiums rising faster than wages must be addressed i.e. the stocks are dependent on economic growth.
- Growth in private health membership must be maintained as COVID hopefully fades away, at least partially!
- The anticipated return of international workers /students will hopefully unfold and assist profitability.
- Digital offerings need to keep improving to attract younger / new members.
- Ongoing government support is a must and one that feels logical as the pressure on the public system continues to grow.
MM is bullish the Australian Insurance Sector
