Younger policyholders boost health insurance numbers: HFANZ

February 9, 2015

MEDIA RELEASE – FOR IMMEDIATE USE

Younger policyholders boost health insurance numbers: HFANZ

The number of New Zealanders with health insurance rose again in the December 2014 quarter, up 1000 to 1.333 million, according to statistics released today by the Health Funds Association (HFANZ).

HFANZ chief executive Roger Styles welcomed the figures, saying the number of lives covered had been relatively static for the past five quarters. He said this reflected the country’s economic stability and New Zealanders’ understanding that they would need to fund some of their future healthcare costs themselves.

Most encouraging was the increase in coverage in the 25-35 age group, up almost 3000 lives in the quarter. Mr Styles said this was possibly as a result of concentrated efforts by some insurers to attract a younger demographic with less expensive policies. These generally provide cover for day-to-day health costs such as GP visits, physiotherapy, dental check-ups and glasses.

“The increase in younger people taking out health insurance is very pleasing because it indicates that they recognise the value of getting in early, before the onset of pre-existing conditions, to safeguard themselves for the future,” he said.

The over-65 age group also recorded an increase, largely due to the ageing population.

Mr Styles said the statistics showed a sizeable number of New Zealanders appreciated the value of health insurance, especially as we head towards a future where access to publicly provided health services will come under increasing financial pressure.

For the year to the end of December, lives covered dropped 2600, or 0.2 percent, the lowest recorded annual decline since September 2009.

Claims paid for the December 2014 quarter were $255.6 million, up 5.5 percent on the previous December 2013 quarter. Total claims paid for the year to December 31 were $989 million, up 4.8 percent on the previous year.

Premium income for the December 2014 quarter totalled $310 million, up $5.3 million or 1.7 percent on the September 2014 quarter. Annual premium for the year to the end of December was $1.21 billion, up 5.9 percent or $68 million on the December 2013 year.

ENDS

Full release with statistical summary Dec2014_quarterly_statistics.pdf

© Scoop Media