Health Insurance in Australia - Industry Research Report

Unpredictable: Volatile investment income is reducing revenue for health insurers

The Health Insurance industry is an integral part of the Australian health system, providing insurance cover for an estimated 45.1% of the population. Revenue is expected to slip at an annualised 0.4% over the five years through 2022-23 to an estimated $27.4 billion. Slow nominal premium revenue growth, alongside volatile investment revenue, has hindered the performance of health insurers. Investment recovery and premium hikes have buoyed revenue by an expected 1.7% in 2022-23.

Industry insurers primarily underwrite insurance policies relating to health and medical risks. Underwriting insurance policies involves assuming risks and assigning premiums. Health insurers provide insurance cover for hospital, medical, dental and pharmaceutical expenses or costs. Health insurers generate revenue through insurance underwriting and returns from investing premiums.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.