Private Health Insurers Failing To Attract New Customers: Study

Private Health Insurers Failing To Attract New Customers: Study
SHARE
THIS



A new study by data insights and programmatic media specialist Pureprofile has found Australians prioritise car insurance over private health care cover, with the industry failing to attract new customers.

The study suggests marketing efforts of private health insurers only contribute to churning customers between funds rather than attracting the uninsured, with one in three Australians having little or no insurance cover.

The survey found private health insurance only had a “medium priority” after car and home insurance, but before life and income protection.

According to the survey, 72 per cent of Australians have comprehensive car insurance and 62 per cent have home and contents insurance. Just over half of Australians (55 per cent) have private health insurance, while only 22 per cent have life insurance and 12 per cent have income protection.

While every second respondent overall considered private health insurance “very important” or “essential”, a quarter of people with private health rated their cover as “only somewhat important”.

Kelvin Kirk, managing director at Pureprofile, said: “The data indicates a large number of the Australian population is still not convinced private health insurance is worth it and are likely to discontinue their cover.

“Private health insurers have a lot of work to do to convince people to take up insurance, but it seems the millions spent on advertising by health insurers each year only appears to prompt existing customers to switch rather than winning new clients.”

Kirk said this was backed up by recall of TV advertising and other media, which was higher among people who already had private health cover. People with no cover had little or no recollection of private health insurance TV ads.

“It is surprising that more isn’t being done to win new customers, as the data tells us there is a real opportunity for private health insurance providers to focus on demonstrating the benefits of membership to people who don’t have cover, especially younger customers,” he said.

“This was illustrated by the fact most surveyed had little idea how expensive it was to spend a night in hospital.

“Private health insurers have an opportunity to educate customers about the potential costs of not having cover. Most people think Medicare will pay for everything, especially those without health cover.”

The report also revealed that the private health insurance market is concentrated among two large brands – Bupa (26 per cent) and Medibank Private (24 per cent).

Both operate strongly across all states, while the brands following are HCF (16 per cent) and NIB (13 per cent), and are particularly strong in NSW.

Private health insurance infograpgic

The study also found that 16 per cent of all Australians have claimed to have switched private health providers in the last three years. Among current PHI owners, this share increases to one in four.

Customers are more likely to switch providers in their first five years of membership with a brand (70 per cent have a tenure less than six years).

Nearly every second switch (46 per cent) was prompted by the renewal notification. One in five customers switched after habitually looking for a better plan every year. Comparison websites like iSelect, choosi and Compare the Market are used by 54 per cent of all switchers, and an insurance provider’s online presence also plays a big role in searching for a better deal.

According to the study: 48 per cent of people under 35 years rely on word of mouth and the opinion of friends and family when switching, while very second Australian recalls recent advertising for private health providers.

Cut-through is highest for women (54 per cent) and 18 to 34-year-olds (55 per cent). TV is the most effective channel, responsible for 90 per cent of total advertising recall.

Mobile ads have little impact, with only five per cent recall in the general population, but enjoy a higher recall among 18 to 24-year-olds (14 per cent).

“The findings indicate an opportunity for marketers of health insurance to tap into mobile ads targeted at the younger audience,” Kirk said.

Please login with linkedin to comment

Latest News

Breast Cancer Survivors Share Their Stories In New Video Series Via Frost*collective
  • Campaigns
  • Marketing

Breast Cancer Survivors Share Their Stories In New Video Series Via Frost*collective

As part of BreastScreen NSW’s awareness drive for the annual October Breast Cancer Awareness Month, Frost*collective was commissioned to develop a series of video stories highlighting the importance of breast screening and biennial mammograms for women aged 50 to 74 years. With one in eight women in NSW developing breast cancer in their lifetime and […]

MediaCom’s Ben McCallum Promoted To Sydney GM
  • Media

MediaCom’s Ben McCallum Promoted To Sydney GM

MediaCom has today announced the promotion of Ben McCallum, head of the entertainment division (TED) to general manager, Sydney. McCallum, an established member of MediaCom Sydney’s Leadership team, began his tenure with the business in early 2015. Following two years as head of The Entertainment Division (TED), McCallum has become an invaluable asset to the agency. During […]

New Editor For GQ Australia
  • Media

New Editor For GQ Australia

News Corp Australia director of prestige and lifestyle Nick Smith has announced that Michael Christensen has been appointed editor of GQ Australia. With more than 10 years’ publishing experience Christensen has worked with GQ for five years, as managing editor for the past 18 months and prior to that he was chief sub editor. Smith said: “Michael […]

M&C Saatchi Boss Repents Over “I’m Bored Of Diversity” Comment
  • Advertising

M&C Saatchi Boss Repents Over “I’m Bored Of Diversity” Comment

M&C Saatchi’s UK chief creative officer, Justin Tindall, has reneged and called his comments last week, where he said he was bored of adland’s obsession with diversity, wrong. As reported on B&T on Friday, Tindall immediately found himself in hot water after a column he wrote for UK industry site Campaign declared he was “bored of diversity being […]

by B&T Magazine

B&T Magazine
Emirates To Bring Its Luxury In-flight Experience To The Melbourne Cup
  • Campaigns
  • Marketing

Emirates To Bring Its Luxury In-flight Experience To The Melbourne Cup

Emirates’ highly anticipated ‘Birdcage’ marquee at this year’s Melbourne Cup Carnival is set to take guests to new flights of enjoyment, as the airline brings to life its signature First Class and Business Class luxury experience as its latest marquee theme. Emirates will invite guests to journey through the clouds in an on-board cabin-inspired marquee, […]

THINKERBELL Land OMD’s Margie Reid As New Managing Partner
  • Advertising

THINKERBELL Land OMD’s Margie Reid As New Managing Partner

Independent agency THINKERBELL has announced the appointment of Margie Reid to the team as managing partner.  Reid will be joining THINKERBELL on January 8th, following a 11-year stint at media agency OMD, including the last few years as managing director. “I’m pleased to be joining the THINKERBELL team and look forward to practicing a little measured magic […]

Why The “No” Campaign Is Just One Long Slippery Slope
  • Opinion

Why The “No” Campaign Is Just One Long Slippery Slope

Not exactly your typical marketing/media piece, but here playwright Ron Elisha (pictured below) explains the damage done by the “No” campaign and the now infamous skywriting on a recent blue-sky Sydney Sunday… My daughter is crying. It’s not that she’s fallen over and barked her knee. Nor is it the trauma of immunization, or the […]

Opinion

by B&T Magazine

B&T Magazine
QMS Goes West With ‘The Leeder’
  • Advertising
  • Media

QMS Goes West With ‘The Leeder’

QMS Media continues to expand its digital portfolio across Western Australia, switching on an iconic billboard in the heart of Perth. Following the launch of two new digital billboards in the major WA regional centres of Bunbury and Kalgoorlie in recent months, ‘The Leeder’ further delivers on QMS’ digital expansion strategy out west. Positioned at […]

PR Firm Text100 Wins NetApp Account For APAC
  • Marketing

PR Firm Text100 Wins NetApp Account For APAC

Global marketing communications agency Text100 has announced it been appointed by data management company NetApp to drive its brand transformation effort across the Asia-Pacific (APAC) region. Following local competitive pitches conducted across the region, Text100 has been appointed as the APAC lead agency out of Singapore, and as the local agency of record in Australia, […]

MFA Awards 2017 Winners Revealed!
  • Advertising
  • Marketing
  • Media

MFA Awards 2017 Winners Revealed!

B&T once again donned the tux, applied the Brut, and primed the liver for last night's MFA Awards in Sydney.

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant
  • Media
  • Technology

Concrete Playground Launches Voice-activated Nightlife Guide With Google Assistant

Digital publisher Concrete Playground has unveiled a new app that helps Millennials plan their night out using voice control – the first of its kind to become available in Australia. Concrete Playground’s Guide to Tonight now works with Google Assistant, making it available on a range of Google devices and helping people to decide what […]

Digital Agency Inlight Secures Two Key Client Wins
  • Marketing
  • Technology

Digital Agency Inlight Secures Two Key Client Wins

Independent agency Inlight has announced it has won the digital account for Benetas, a not-for-profit aged care provider in Victoria. Following a competitive pitch process, Inlight was chosen to handle Benetas’ new website design, build and ongoing optimisation. Richard Barker, marketing manager at Benetas, said: “We wanted an agency that could be our true digital […]

AMI Awards 2017 Winners Revealed!
  • Marketing

AMI Awards 2017 Winners Revealed!

With almost 30 awards handed out, B&T predicts plenty of numb bottoms at last night's AMI Awards in Melbourne.

Clems Sydney CEO Andy Pontin Quits
  • Advertising

Clems Sydney CEO Andy Pontin Quits

Sure, B&T flashed the news of Andy Pontin quitting this morning. White lies aside, he's actually still got six months.

by B&T Magazine

B&T Magazine
Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

B&T's journo is reporting live from the annual Adobe Summit in Vegas. Although, "reporting" is somewhat of a stretch.

Opinion

by David Hovenden

David Hovenden
Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses
  • Marketing

Digital Women’s Network & The Australian College Of Marketing Unveil Latest Short Courses

The Australian College of Marketing is collaborating with the Digital Women’s Network to bring new short courses aimed to provide the latest skills across all aspects of the Digital landscape, kicking off in Melbourne and Sydney in 2018. Course content will focus around various topics related to the digital marketing landscape. All courses will run […]

Man working at office desk, looking at computer and scratching head
  • Technology

Where Are Digital & Tech Skills & Salaries Headed?

The rapid pace of technological change in the digital sector is seeing demand for those with the right skill sets outstrip availability, both locally and globally. The individuals who have kept their skills up to date are being well-rewarded financially. Now, Digital + Technology Collective’s expanded annual Skills and Salary Survey will put some numbers and context […]

Disney & ESPN Unify Sales & Partnerships Teams
  • Advertising
  • Marketing
  • Media

Disney & ESPN Unify Sales & Partnerships Teams

Disney and ESPN have formed an even closer bond, announcing a new alignment of the two properties through their media sales and partnerships teams. Instead of entering through three doors, Disney ESPN Media Sales & Partnerships will give media buyers and marketers a refined, singular point of entry for Disney, ESPN Digital and Maker. Nik […]

by B&T Magazine

B&T Magazine
Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]