Private Health Insurers Failing To Attract New Customers: Study
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.
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.
Latest News
TV Ratings (18/04/2024): I’m A Celebrity Wins Prime Time And Key Demos
Aussie viewers can be a harsh lot at times. Only days after Ellie Cole bled her heart out, she has been sent packing.
Effie&co Launches New ConnectAsia Division To Help Aussie Brands Market To Asian Consumers Overseas & At Home
Not provided is advice on using chopsticks and not spilling ramen down your shirt.
Cashrewards Sets Out Stall For New CMO
Thinking of applying for the Cashrewards CMO gig? Here are some insider tips that, yes, are tantamount to cheating.
‘I Ask For The TV Industry To Stand Up And Defend Itself’ – Seven Boss James Warburton Steps Down
The Seven supremo heads for the exits after five years. Here's hoping the Spotlight team organised the farewell bash.
Poh! Jamie! Adriano! Paramount ANZ reveals its tasty plans for this year’s MasterChef
It's your fan's guide to this year's MasterChef! Although no tips on how to pronounce crudités or use a un fait-tout.
Dentsu’s iProspect Partners With MOOD Tea Ahead Of May Campaign Launch
We love a Mood Tea here at B&T. Although we do store old screws and nails in the International Roast caterer's tin.
Opinion: When Culture Starts Eating Itself: Navigating The Age Of Self-eating Nostalgia
Born boss David Coupland asks is adland going through a nostalgia period? But please, no repeats of Best Of Red Faces.
Who’s Going To Cannes?! The TikTok Young Lions Winners!
It's Aussie adland's next gen! They're off to Cannes with high hopes of bringing back a Lion & a foot-long Toblerone.
Adobe Launches Express Mobile App With Firefly AI
Want to be the coolest kid at Friday staff drinks but forgot your retro Nikes? This new Adobe wizardry may do the trick.
ThinkNewsBrands & IMAA Extend News Publishing Education In Brisbane
Industry duo takes its publishing roadshow to Brisbane. Was disappointed no male attendees were wearing walk socks.
B&T Chats With Wavemaker’s Provocative Pioneers On Their Cross-Pacific Sojourn
B&T TV heads to Wavemaker's Sydney digs to interview two staffers from its New York & LA digs. If that makes sense?
HoMie & Champion Launch “Give One. Get One” Campaign Supporting Youth Homelessness Via Town Square
Much like the fête's prized chutney wears a blue winners sash, so too should this top initiative from HoMie & Champion.
Thinkerbell Takes Us Back To Summer In Latest Work For XXXX
This beer ad wants to take you back to summer! Just minus any chance of a shark attack on your morning bus commute.
Cannes Lions Unveils 2024 Programme Featuring Queen Latifah, Jay Shetty & P&G’s Mark Pritchard
Are you one of the lucky ducks heading to Cannes in June? Check out the headliner acts you'll be queueing hours to see.
Scroll Media Recruits Costa Panagos From Twitch
Costa Panagos set to bring South American flair to the Scroll offices. Assuming that he is, indeed, South American.
Year13, Microsoft & KPMG Australia Launch AI Course For Gen Zs
Born around the 2000s? Need to amp up your AI creds? This guide's for you (although it's not really that age specific).
General Motors Snares Heath Walker From Scania
Do you rage about oversized American cars on our roads? You need to bail up Heath Walker at parties & industry events.
VML Launches New “Envoyage” Brand For Flight Centre
VML unveils new brand for travel operator Flight Centre. Alas, no sign of those paid actors pretending to be pilots.
Subaru Places Media Account Up For Review
Subaru puts media up for review, as adland journos get set for mandatory "agency drives off with..." headline.
TV Ratings (17/04/2024): Contestants Faced With Harsh Realities As Alone Australia Heats Up (Or Cools Down)
Alone still doing the business for SBS. Overly long train journeys not doing the business, but they persist anyway.
Ben Fordham Loses Number One Spot As Ray Hadley Celebrates 156th Ratings Win
The radio numbers are in! Discover who's off for a boozy lunch today & who's waiting for the dreaded HR death knock.
Gourmet Ice Cream Brand Connoisseur Launches New “Thrill Your Senses” Iteration, Via SICKDOGWOLFMAN
Rattling the old "truth in advertising" adage comes this ice-cream spot full of noticeably thin people.
Paramount’s Global Sales Boss: ‘Australia’s Converged Model Is A Blueprint For How I’d Like All Of Our Markets To Be’
Paramount's global sales boss gives local sales ops the thumbs up. Didn't weigh-in on the Lisa Wilkinson debacle.
TikTok Starts Testing Its Instagram Rival In Australia
In exciting news for piano playing cats & brattish pranks in shopping centres, TikTok unveils its Insta rival plans.
Man Wrongly Named By Seven As Bondi Killer Hires Lawyers
Struggling to save for a house deposit? Why not get wrongly identified by Sunrise!
Smartsheet Appoints Indie Agency Sandbox Media To Its Media Account
Can't stand your colleagues? Like to dob them in when they miss a deadline? These work management platforms are ideal.
Boss Not Letting You Come To Cannes In Cairns? Use This Business Case To Convince Them!
Stingy boss won't spring for a ticket to Cairns? Add this to your persuasive argument repertoire. Or grovel.
Alt/shift/ Brisbane Builds Portfolio With Ausbuild Creative, PR, Content & Social Account Win
The Brisbane comms/PR agency lands constructor Ausbuild. Also hoping for a discount on its new glass conservatory.
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
Cannes In Cairns poking this hornet's nest in a lively debate. Just so long as the oldies can get up the stairs.
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Are you the notorious "light leaver on-er" in your flatshare? Quell any infighting with this green energy news.
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
B&T applauds the charitable nature of this new agency. Although we'd hate to see it impact any Chrissie present sends.
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
Yes, it's another NRL drug story. Yet, thankfully it doesn't involve coke in Kuta during the off-season.
Slew Of New Creative Hires At Leo Burnett Australia
Ahhh, all black! The outfit of choice for agency creatives, David Jones staff and everyone in Melbourne.
Under Armour Unveils Local “Live in UA” Campaign
American apparel brand set for yet another tilt at the Aussie market, as Nike declares "we'll see about that".
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Are you always the bridesmaid, never the bride, as the old saying goes? How do you think Pepsi feels?
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
B&T's always been a huge fan of the 'drink yourself thinner' diet plan. So big thanks to Pure blonde, vodka & tequila.