Why don’t more people switch health funds?
Rob Seljak
CEO, TUH
How many switch?
How many switch?
Are more people switching?
Are more people switching?
YESBUT
The rate of switching is still not material
Should we be worried?
Should we be worried?
ITDEPENDS
Why do people switch?
49%
39% 32%
How about intermediaries?
Why don’t more people switch?
Privately, we won’t change
“There’s probably about 100,000 to
120,000 people changing insurers of
about 11 million people covered
which is a very small number’’
Shaun GarthCEO, PHIAC
Telco switching
“Almost half of Australian mobile phone
subscribers have switched providers in the past
three years, and 40 per cent are considering a
change in the next 12 months, new research
shows”
Sydney Morning Herald
Ombudsman complaints
Ombudsman complaints
PHI vs Telco complaints
Why don’t more people switch?
Product design
Regulatory framework
Premium variabilityPremium increases +/- 2% from industry average
2004-2008 2009-2014
Why don’t more people switch?
Too complicatedToo much effortToo time consuming (IPSOS)
BUT WE TELL THEM IT’S EASY!
Transfer process
Slow
Transfer process
Transfer process
Bureaucratic
Transfer process
Not enforced
Awareness of
Transfer Rules
What would cause more people to switch?
Questions
Thank you
Sources:
• PHIAC - Portability, switching and competition in the Australian PHI market – July 2013
• IPSOS – Health Care and Insurance Australia Report - 2013
