Young & Single? Private Health Insurers have you targeted

In a market of more than 300,000 young single Australians with private health insurance coverage (27.5% of single Australians aged 25 to 34 for the 12 months to November 2007), Medibank Private continues to be the dominant player nationally, leading at 27.2%. Its largest competitor, MBF, trails at 17.6%, according to the latest Roy Morgan Single Source data.

Chart 1: Young Singles Private Health Insurance Brand Share

Period:     Rolling 12 months;

Base:        Australians aged 25-34, Not Married/Partnered with Private Health Insurance

Young Australians, and in particular, singles aged between 25 and 34 represent a key market opportunity for acquiring new customers, with over a million Australians belonging to this demographic with 70% not covered by private health insurance (November 2007, Roy Morgan Research). The young singles market is associated with lower likelihood of incurring hospitalisation expenses and private health insurers offer tailored health covers with premiums priced for these singles to entice them to join. In addition, those aged 25 and older are generally no longer entitled to be included under family health cover taken out by their parents or guardians, providing another opportunity to acquire new business.

Norman Morris, Global Finance Industry Director at Roy Morgan Research, says:

“Acquiring and retaining new customers, in particular younger customers offers a valuable offset against the higher health care expenditure incurred by ageing members. Other private health insurers such as BUPA Australia and Australian Unity have also developed their business towards the older age group of their customer base by offering services in the retirement living and aged care business.”

Chart 2: Young Singles Private Health Insurance Coverage

Period:     Rolling 12 months;

Base:        Australians aged 25-34, Not Married/Partnered with Private Health Insurance

Income-earning power continues to grow in this demographic group, but private health insurance coverage take-up has not kept pace. Approximately one out of every two single Australians aged 25-34 and earning $50,000 or more per annum are not covered. (November 2007, Roy Morgan Research).

Private health insurer NIB, which has recently de-mutualised, is targeting to grow its market share in the young Australians demographic, as competition continues to heat up in the private health insurance marketplace. Competitors such as MBF, who are likely to merge with BUPA Australia, would lead the way for market consolidation and create a significant national-level competitor against Medibank.   

But NIB faces a stiff challenge in gaining market share, with significantly larger players in all states holding a majority of customers across all age groups. At the total market level (age 14+), the competition is fiercest at the state-level with Medibank up against MBF in New South Wales and Queensland. In South Australia, Mutual Community has a significant lead over Medibank, whilst in Victoria, Medibank leads.

Table 1: Top 6 Private Health Insurers (Coverage)

* BUPA operates as Mutual Community in South Australia and the Northern Territory and HBA in all other states

Period:     12 months to November 2007;

Base:        Australians aged 14+ with Private Health Insurance; n= 20,481

For comments or further detail, please contact:

Norman Morris — Roy Morgan Research Global Finance Industry Director

The 2008 Sydney Morning Herald Half Marathon takes off again this year for the 17th year in succession. The race will be held Sunday 18 May 2008 in the Sydney CBD and is a large event which usually fields around 5000 runners.

The race layout has changed this year and runners start and finish at Hyde Park. The race starts in College St then heads for George St, Argyle & Kent, around Hickson Rd and back down George St, then down Macquarie and the loop around Mrs Macquarie’s chair returning to the finish at Hyde Park north along Macquarie St.

The SMH sets out a 14 week on online training programme for beginners wanting to run the course

The men’s results have recently been totally dominated by last years winner Brett Cartwright who has won it 3 times to equal the 3 wins by the famous Steve Moneghetti in the 1990’s however Brett has been unable to nail the fast times set by Steve Moneghetti who’s 3 wins and a 2nd were all among the fastest times. The men’s race record is an impressive 61.11 set by Patrick Carroll who has also won twice. For the ladies, Anna Thompson has won it the last two years in a row. Both of these current champions are expected to defend their titles and hope to make history with the most wins in 2008.