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High satisfaction with private health insurance claims

Source: Roy Morgan Single Source (Australia). 12 months to December 2016, n= 23,367, 12 months to December 2017, n=23,153. Base: Australians 14+ with Private Health Insurance. 1. Private Health Insurance claims. Roy Morgan Single Source (Australia). 12 months to December 2017, n=5,604.Base: Australians 14+ who have made a Private Health Insurance claim in the last 12 months.
Some good news for private health insurers, their members have a very high 88.8% satisfaction when they make a claim. This new research from Roy Morgan has come at a critical time for this industry as it faces negative publicity over the impending increased premiums.

These new findings are from Roy Morgan’s Single Source survey of over 50,000 consumers per annum, including over 23,000 with private health insurance.

In the 12 months to December 2017, satisfaction with private health insurance funds overall was 71.0%, down from 73.6% in the same period in 2016. This high level of satisfaction with claims (88.8%) suggests the decrease in satisfaction is more likely the result of increased premiums rather than problems with claims.

Satisfaction with Private Health Insurance and Claims

Source: Roy Morgan Single Source (Australia). 12 months to December 2016, n= 23,367, 12 months to December 2017, n=23,153. Base: Australians 14+ with Private Health Insurance. 1. Private Health Insurance claims.  Roy Morgan Single Source (Australia). 12 months to December 2017, n=5,604.Base: Australians 14+ who have made a Private Health Insurance claim in the last 12 months.

Our research on switching private health insurance finds that very few fund members switch funds due to problems with claims, with only around 5% of fund switchers giving this reason. The main reasons given by over 70% for changing funds are the high cost and increased premiums.

Norman Morris, Industry Communications Director, Roy Morgan says:

“With a great deal of negative publicity currently around the impending increase in private health insurance premiums, it is not surprising that overall satisfaction with funds has shown a decline over the last year and as a result they are likely to lose members. Premium increases are largely outside the control of the funds but we have seen that funds can impact the claims process and as a result the satisfaction with claims is a very high 88.8%”.

“The successful handling of claims is likely to increase the chances of member retention and acquisition and so needs to be measured at the individual fund level. This data is available for all major private health funds, enabling the measurement of relative performance, a key metric to impact marketing success.”


For comments or more information please contact:
Norman Morris, Industry Communications Director
Office: (+61) (03) 9224 5172
Norman.Morris@roymorgan.com


About Roy Morgan

Roy Morgan is the largest independent Australian research company, with offices throughout Australia, as well as in Indonesia, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan has over 70 years’ experience in collecting objective, independent information on consumers.

Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size

Percentage Estimate

40%-60%

25% or 75%

10% or 90%

5% or 95%

5,000

±1.4

±1.2

±0.8

±0.6

7,500

±1.1

±1.0

±0.7

±0.5

10,000

±1.0

±0.9

±0.6

±0.4

20,000

±0.7

±0.6

±0.4

±0.3

50,000

±0.4

±0.4

±0.3

±0.2