According to data and analytics company GlobalData, Medibank has regained its position as the leading Australian health insurer in 2022, ending the six-year dominance of Bupa.
GlobalData’s Insurance Database reveals that in the highly consolidated Australian health insurance market, Medibank’s direct written premiums (DWP) grew at a compound annual growth rate (CAGR) of 2.1 per cent during 2018–2022, compared to Bupa’s CAGR of 0.2 per cent in the same period.
In 2022 alone, Medibank’s health insurance DWP grew by 2.8 per cent, whereas Bupa’s DWP declined by 0.7 per cent.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, said: “Medibank’s performance in health insurance 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 are the lowest among health insurers operating in Australia, with the company registering the lowest increase in premium prices competitive in the market.
Medibank also 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 increased by 4.6 per cent in 2021 and 3.2 per cent in 2022.
Sahoo added: “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.”
Its new ‘Short Stay at Hospital’ programme allows eligible patients to spend less time in hospital and recuperate at home, with care provided but no medical out-of-pocket costs. This has reduced the average out of pocket expenditure by A$1,200 per customer in 2022.
Sahoo concluded: “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 number of policyholders.”
However, also in 2022, Medibank experienced a significant data breach.]