Media releases
Friday 9 March 2012
iSelect welcomes Bupa undertakings on media release
iSelect today welcomed the withdrawal of a media release from the Bupa Australia website and an undertaking from Bupa to refrain from any further distribution. This action by Bupa followed a demand from iSelect that the release be withdrawn on the basis that it contained false and misleading claims.
iSelect was advised late yesterday that Bupa Australia Pty Ltd, part of the British-owned Bupa Group, has started legal proceedings against it in the Federal Court.
iSelect had not received a copy of the claim at the time a media release was posted on the Bupa website late yesterday. The content of the media release was reproduced in online and print media publications today.
iSelect strongly refutes the allegations and will vigorously defend the claims in the Federal Court.
For further information please contact:
Paul Cross (Executive General Manager – Commercial Planning and Corporate Affairs)
Ph: (03) 9276 8394 / pcross@iselect.com.au
ABOUT iSELECT
iSelect is the leading provider of better solutions for Australian consumers in the market for household products and services. We bring competing products with complex features together in one location in a way that makes it easier for consumers to decide right.
iSelect is at the forefront of a fundamental change in the way consumers buy products and services. Consumers use the iSelect service to save time and get a product that better suits their needs.
As an organisation, our shared commitment to simplifying the purchase of complex household products has been the cornerstone of our success since our launch in 2000. We focus on people, our partner providers, clients and staff, as we continue to grow and evolve into Australia’s home of comparison and choice.
iSelect’s partner providers include some of Australia’s largest companies, across insurance, telecommunications and banking.
FOLLOW iSELECT ON TWITTER : @iselect or http://twitter.com/iselect
Tuesday 28 February 2012
Double trouble with private health cover
-Aussies warned not to keep heads in the
sand following $780 million premium rise-
With just four weeks before private health insurance prices rise by an average of 5.06% - from 1 April – the 10% of Australians with health cover but suffering ‘insurance inertia’, are being warned to check their health policy. The premium rise approved by the Federal Government today, will add $780 million to the cost of Private Health Insurance for Australian families, - taking action early will be important with means testing likely in July.
According to recent research by iSelect, a staggering one in ten Australians with private health insurance (11%1), or an estimated 290,0002 policy holders, have never reviewed their policy – while only half (47%1) have reviewed it in the last 12 months.
“With an imminent price rise, but also means-testing on the horizon, insurance inertia is not going to help household budgets over the short or long term,” states Matthew Cuming, Corporate Affairs Manager for iSelect.
“Without regular policy reviews, people could in fact be paying for inclusions in their health insurance they no longer need – for instance retirees with pregnancy cover or people in their twenties and thirties with a level of cover not suited to their current circumstances.”
From 1 April, it’s estimated Australian families will pay an average of $136 more per year for their private health cover. This is even before means testing for the private health insurance rebate comes into effect 3 months later (1 July 2012).
“It’s important to remember that the 5.06% rise announced today is the average increase consumers can expect – so in reality, many will end up paying much more, in some cases hundreds of dollars,” adds Matthew.
The research commissioned by iSelect showed the majority of Australians (89%1) with private health insurance placed great importance on having it – but in a similar way to mortgages - significant confusion still exists in people’s understanding of their ability to switch funds. Close to one third (30%1) were afraid of being hit with penalties for changing funds and a similar number (32%1) said reviewing their health insurance was too complex and confusing.
“Tailoring health cover to match your current stage of life can result in significant cost-savings. So it’s vitally important to understand what you actually need from your private health insurance, and actively shop around for a policy that best suits your needs and budget. By doing this, it can be possible to actually offset prices rises or tax penalties like those recently announced.
“There is for instance, hundreds of dollars difference between similar policies. In fact, in some parts of Australia the difference in the cost of top hospital cover for a family can be more than $900 over 12 months,” concluded Matthew.
Australians keen to get a better deal on their insurance should visit www.iselect.com.au or phone 13 19 20.
For further information please contact:
Matthew Cuming (Corporate Affairs Manager - iSelect)
0421
566 787 / mcuming@iselect.com.au
1 Research methodology: Survey conducted nationally by Woolcott Research (10-12 February 2012) among 1000 Australian adults (aged 18 or over).
2 Private Health Insurance Administration Council, Quarterly Statistics, September 2011
ABOUT iSELECT
iSelect is the leading provider of better solutions for Australian consumers in the market for household products and services. We bring competing products with complex features together in one location in a way that makes it easier for consumers to decide right.
iSelect is at the forefront of a fundamental change in the way consumers buy products and services. Consumers use the iSelect service to save time and get a product that better suits their needs.
As an organisation, our shared commitment to simplifying the purchase of complex household products has been the cornerstone of our success since our launch in 2000. We focus on people, our partner providers, clients and staff, as we continue to grow and evolve into Australia’s home of comparison and choice.
iSelect’s partner providers include some of Australia’s largest companies, across insurance, telecommunications and banking.
FOLLOW iSELECT ON TWITTER : @iselect or http://twitter.com/iselect
1 Research methodology: Survey conducted nationally by Woolcott Research (10-12 February 2012) among 1000 Australian adults (aged 18 or over).
2 Private Health Insurance Administration Council, Quarterly Statistics, September 2011.
15 Feb 2012
Means test – Australians value their
cover but will review it -Families facing price rises of up to
$1500-
A new survey commissioned by iSelect and conducted by Woolcott Research at the weekend (10-12 February 2012), has found that 49%1 of Australians with private health insurance will review their cover as a result of the means test for the Private Health Insurance Rebate.
Matthew Cuming, Corporate Affairs Manager for iSelect, said that the introduction of a means test for the Rebate will motivate around 2.9 million2 policy holders to review their cover with the aim of retaining it, rather than dropping it outright.
“The research over the weekend shows that 89%1 of respondents with private health cover derive great peace of mind from having it,” Mr Cuming said.
“We know from our own experience that Australians greatly value private health insurance, but that they may not have reviewed their policy in many years, if at all - and the research confirms this. Of those surveyed with Private Health Insurance, less than half (47%)1, had actually taken the time to review their cover in the last year, and 11%1 (an estimated 290,00022 policy holders) have never reviewed it at all.
“The fact that so many Australians haven’t reviewed their cover in over a year, means they could be paying for inclusions they no longer need. For example, we see many couples nearing retirement who are still covered for pregnancy, and people in their twenties and thirties with a level of cover not suited to their current circumstances. Tailoring health cover to match your current stage of life can result in significant cost-savings,” Mr Cuming went on to say.
“Many people now face paying more, as much as $1,500 a year for some families, so it is no surprise that so many Australians will opt to review their cover to mitigate the impact of the means test,” said Mr Cuming.
It’s also clear from the research that significant barriers still exist to consumers understanding their ability to switch funds. Around a third (32%)1 of those surveyed said that reviewing their health insurance was too complex and confusing, and a similar number (30%)1 were afraid of being hit with penalties for doing so.
“We speak with thousands of Australians every week, who come to us seeking help in understanding their options when it comes to health insurance. More and more consumers are becoming astute at understanding their needs and using services such as ours to their advantage,” Mr Cuming concluded.
1 Research methodology: Survey conducted nationally by Woolcott Research (10-12 February 2012) among 1000 Australian adults (aged 18 or over).
2Private Health Insurance Administration Council, Quarterly Statistics, September 2011
KEY RESEARCH FINDINGS
- 49%1 of Australians with private health insurance will review their cover as a result of the means test for the Private Health Insurance Rebate.
- 65%1 of Australians aged 25-34 with private health insurance will review their cover as a result of the means test for the Private Health Insurance Rebate.
- 66%1 of Australians aged 35-44 with private health insurance will review their cover as a result of the means test for the Private Health Insurance Rebate.
- 89%1 of those with private health insurance said having it gave them peace of mind.
- 43%1 of those with private health insurance believe they will be worse off following the introduction of the means test.
- Only 47%1 of those with private health insurance had reviewed their cover in the last year.
- 11%1 of those with private health insurance (an estimated 290,0002 policy holders) have never reviewed their health cover policy.
Australians keen to get a better deal on their insurance should visit www.iselect.com.auor phone 13 19 20.
For further information please contact:
Matthew Cuming (Corporate Affairs Manager - iSelect)
0421
566 787 / mcuming@iselect.com.au
ABOUT iSELECT
iSelect is the leading provider of better solutions for Australian consumers in the market for household products and services. We bring competing products with complex features together in one location in a way that makes it easier for consumers to decide right.
iSelect is at the forefront of a fundamental change in the way consumers buy products and services. Consumers use the iSelect service to save time and get a product that better suits their needs.
As an organisation, our shared commitment to simplifying the purchase of complex household products has been the cornerstone of our success since our launch in 2000. We focus on people, our partner providers, clients and staff, as we continue to grow and evolve into Australia’s home of comparison and choice.
iSelect’s partner providers include some of Australia’s largest companies, across insurance, telecommunications and banking.
FOLLOW iSELECT ON TWITTER : @iselect or http://twitter.com/iselect
1 Research methodology: Survey conducted nationally by Woolcott Research (10-12 February 2012) among 1000 Australian adults (aged 18 or over).
2Private Health Insurance Administration Council, Quarterly Statistics, September 2011
31 May 2011 -
New Chief Marketing Officer to lead evolution of iSelect brand
iSelect Ltd (‘iSelect’) today announced the appointment of David May as its new Chief Marketing Officer.
David joins iSelect from Jetstar, where he was the General Manager – Marketing & PR, and brings fifteen years of experience in a range of roles across the full spectrum of marketing media. He has previously held leadership and senior marketing roles at GE Money and Wunderman Melbourne.
Damien Waller, iSelect founder and Group Chief Executive Officer, welcomed David, saying his appointment is a very positive step for the company.
“iSelect is committed to helping consumers by simplifying the purchase of complex products. Our ambition is to create the home of comparison for Australians in the market for a household or financial service.
“The further development of our brand is fundamental to our continued growth and evolution as a business. We are delighted that David will lead this process, leveraging his vast experience across a diverse range of sectors, including telecommunications and financial services,” said Mr Waller.
iSelect was established in 2000. Originally launched as a health insurance comparison service, iSelect has grown significantly and now supports consumers in a range of categories, including car and life insurance, home loans and broadband.
The recent announcement of the acquisition of Infochoice will accelerate iSelect’s expansion into new financial services categories and cement the company’s position as the market leader in comparison.
“David’s experience and strategic thinking is a great asset to the team. He will take a senior leadership role and continue the process of building the iSelect brand into one of the most recognised in Australia,” said Mr Waller.
- ends -
For further information, please contact:
Paul Cross
General Manager, Corporate Affairs
iSelect Ltd
(03) 9276 8394
0413 265 056
pcross@iselect.com.au
23 May 2011 -
Broadband befuddlement - Aussies over-spending by $141 million
Research released today reveals Australia is in the midst of an internet explosion, yet broadband consumers are over-spending on their connections by $141 million1 through a lack of understanding of what they really need.
Over 7.5 million Australian households subscribe to broadband internet, a jump of almost a million in 12 months2. In their enthusiasm to do more online however, Australians are failing to review and update their plans to meet their changing needs.
The iSelect Broadband Report3 shows broadband is booming in Australia - Australians are on average downloading more than 48 gigabytes of data per household per month (the equivalent of approximately 20 movies and 2000 songs), or a massive 368 million4 nationally per month.
More than half of Australians across all age groups rate the internet as the single most important piece of technology in their home, ahead of television.. Entire families are now online, with three or more people accessing the internet in almost half of Australian households (48 per cent). Yet over half (59 per cent) of those surveyed admitted they did little or no research into different broadband services before choosing a broadband package.
The Report shows Australians are confused about what they are paying for, despite rating themselves highly on their 'internet intelligence', with 83 per cent reporting they have a good or very good understanding of the internet at home. Those who go over their monthly data allowance are spending on average almost $200 a year extra for the privilege5.
According to technology expert and blogger, Charlie Brown, the Report highlights how active Australians of all ages are online.
"More Australians than ever before are connecting with each other via the internet. This research found that two thirds of Australians now rely on the internet to keep in touch with their relatives and friends, and social media is growing at a rapid pace, even amongst older internet users."
"However, in contrast with the heightened status of broadband internet in the home, Australians aren't researching their choice of plans properly. There is a lack of understanding of the more technical details such as connection speeds and how much data they actually need, leading to consumers signing up to plans that don't fulfil their needs," he said.
A quarter of Australians don't know how much data they download each month, and consistent with this, a third never check how much of their download limit they have used.
Less than a quarter (24 per cent) understand how the speed of their broadband connection is measured (megabits per second), yet 86 per cent say speed is very or extremely important to them.
"Australians need to do their homework on broadband before signing up to a new contract. It doesn't need to be time consuming or difficult - if you use an online comparison service, you can evaluate plans based on your actual needs to find the best one for you," said Charlie.
Not surprisingly, most people (66 per cent) say that reliability and maintaining connection are the most important features of a home internet service. However, amount of data downloads is further down the list of priorities (36per cent) even though it is more closely related to actual cost, and is the basis on which most internet services are promoted.
"Almost three quarters of those surveyed reported feeling frustrated, angry or powerless when they go over their monthly data limit for broadband. Just under two thirds (59 per cent) reported spending less time online as a result.
"This is all avoidable if Australians become as active in shopping around online for the right plan, as they are when it comes to using Facebook, email and downloading music and movies," said Matthew.
1 Actual figure $141,313,506.15
2 ABS Internet Activity Survey 31 Dec 2010, excludes dial-up subscribers
3 Research methodology: This research was conducted by StollzNow Research (27 April-2 May 2011) among 1,000 Australians nationally (15-65 years old)
who currently have a home internet connection. The research was commissioned by iSelect.
4 Actual figure 368,357,500
5 Actual figure $186.06
Issued on behalf of iSelect by Cube. For further information please contact:
Virginia Johnstone on 0416 865 193 / virginia@cube.com.au
Anne-Marie Sparrow on 0417 421 560 / anne-marie@cube.com.au
WEBSITE
www.iselect.com.au/broadband
About iSelect
iSelect is Australia’s leading provider of online comparison for a range of household products and services, including health, life and car insurance, home loans and now broadband internet. iSelect was founded on the principle of removing the confusion and complexity from the process of buying everyday necessities.
17 May 2011 -
iSelect to acquire Infochoice, BidMyLoan and Once Life for $33.5 million
Acquisition to drive new assault in financial services comparison.
iSelect Ltd, Australia's leading provider of online comparison services, has agreed to acquire the Infochoice, BidMyLoan and Once Life businesses for $33.5 million subject to a series of conditions being met.
The conditions are described in a Term Sheet agreed and signed by iSelect Ltd and Once Pty Ltd. Once Pty Ltd is the major shareholder in the listed entity Infochoice Limited (ICH). BidMyLoan and Once Life are wholly owned subsidiaries of Once Pty Ltd.
iSelect founder and Group CEO, Mr Damien Waller, said the acquisition would substantially expand iSelect's offering, cementing its position as the leading provider of online consumer comparison services in Australia.
"The acquisition brings together two market leaders in comparison to create a one-stop online shop for Australians in the market for household and financial services.
"These businesses are complementary to our own and the acquisition represents an excellent strategic fit for where we want to take iSelect into the future.
"With the addition of the three businesses, bringing our team to 320, over 700,000 Australians will visit an iSelect website every month to compare a household or financial service.
"Importantly, the addition of new categories to the iSelect business is good for consumers because they will now be able to compare an even wider range of products in the one location at the same time.
"The acquisition will deliver scale to our business, which combined with our experience in helping consumers to simplify the purchase of complex products and services, has the ability to deliver real value in a short space of time," said Mr Waller.
For further information, please contact:
Paul Cross
General Manager, Corporate Affairs
iSelect Ltd
(03) 9276 8394
0413 265 056
pcross@iselect.com.au
About iSelect
iSelect is the leading provider of comparison and choice for Australian consumers in the market for household products and services. We bring competing products with complex features together in one location in a way that makes it easier for consumers to compare, select and save®. iSelect is at the forefront of a fundamental change in the way consumers buy products and services. At no cost to them, consumers use the iSelect service to save time and get a product that better suits their needs. As an organisation, our shared commitment to simplifying the purchase of complex household products has been the cornerstone of our success since our launch in 2000. We focus on people, our customers, clients and staff, as we continue to grow and evolve into Australia's home of comparison and choice.
iSelect's customers include some of Australia's largest companies, across insurance, telecommunications and banking.
About Infochoice
Infochoice is Australia's leading financial product comparison site. Founded over 15 years ago, Infochoice is recognised for its helpful information, tools and expert media commentary, striving to make it easy for consumers to find financial products that best meet their needs. Infochoice is a publicly listed company on the Australian Stock Exchange.
About Once Life
Once Life Pty Ltd is an online provider of life insurance, delivering simple solutions to assure customers' confidence in their financial future. To provide customers with security, Once Life insurance is issued and underwritten by St Andrew's Life Insurance Pty Ltd.
About BidMyLoan
BidMyLoan is an online service that allows lenders to bid for a customer's business with their best home loan offers. The company has rebuilt the home loan process from a customer perspective, making it more straightforward.
25 March 2011 -
iSelect enters the mortgage market in partnership with AFG
iSelect, Australia’s leading provider of comparison and choice for consumers in the market for insurance, has launched its move into the home loans market, partnering with the Australian Finance Group (AFG).
AFG is Australia’s largest independent mortgage broking group and the partnership with iSelect represents the coming together of two leaders in their respective fields. Under the partnership, AFG will provide iSelect with a range of services, including product comparison and electronic loan lodgement.
Cameron Clemens, General Manager of Home Loans at iSelect, said the partnership heralds the arrival of an unparalleled service for Australian consumers in the market for a home loan.
"We have built a successful business over ten years by helping people to simplify their purchase of important but complex household products, like health, life and car insurance. "Few products we buy during our lives are as important, or as complex, as a home loan, and we believe our commitment to simplifying things for consumers is perfect for this market," said Mr Clemens.
Bryce Deledio, National Account Manager at AFG, welcomed the partnership with iSelect, saying that the two companies would bring a fresh approach to the home loans market. "We offer Australia's largest range of mortgage products, including 800 home loans from 34 lenders.
"Combining our aggregation and support service with iSelect's pedigree in helping consumers navigate complex markets has the potential to help thousands of Australian families," said Mr Deledio.
iSelect has established a high-calibre Home Loans team including Mobile Mortgage Consultants in New South Wales, Victoria and Queensland.
Mr Clemens confirmed that iSelect Home Loans is experiencing strong uptake, with the company already looking to expand by increasing the number of Home Loans consultants over the coming months.
For media enquiries, please contact:
Paul Cross, General Manager - Corporate Affairs, iSelect
(03) 9276 8394 or 0413 265 056
Bryce Deledio, AFG – National Account Manager
(03) 9820 4800 or 0414 820 659
10 March 2011 -
iSelect backed by global growth equity firm
iSelect Ltd (’iSelect’) today announced that US-based growth equity firm Spectrum Equity Investors (’Spectrum’) has acquired a minority $30.2 million stake in the company.
Commenting on the announcement, iSelect founder and Group Chief Executive Officer, Mr Damien Waller, welcomed the company's latest shareholder, saying Spectrum's investment is their first in an Australian company and comes after ten years in which iSelect has established itself as the market leader in comparison by helping consumers simplify the purchase of complex products.
Spectrum is a leading global growth equity firm with significant experience supporting the growth of online businesses. The firm's investments include a number of leading global Internet companies such as Ancestry.com, NetQuote, SurveyMonkey and Demand Media. Spectrum manages $4.7 billion in capital across six funds.
"Spectrum’s decision to invest in iSelect reflects their view of our performance, growth and future potential, and confidence in our management team to continue to create value and deliver against our strategic goals.
"They bring extensive knowledge and experience in supporting the continued success of high growth online companies, particularly with NetQuote, the most visited insurance site on the web, which is important for iSelect as we launch into new businesses such as comparison services for home loans, broadband, utilities and financial services," said Mr Waller.
Spectrum has already enjoyed success in Australia with the strong performance of the local businesses of Ancestry.com and SurveyMonkey.
"The companies in which we invest are leaders in their industries, have well-established business models, are run by experienced management teams, and have significant opportunities for future growth," said Mr. Victor E. Parker, Managing Director of Spectrum Equity Investors.
"iSelect is the clear market leader, has over ten years experience and is uniquely positioned with consumers and its product providers.
"We are excited about the company's future and potential to grow market share in existing and new businesses as it leverages its strong brand and continues to offer providers an efficient and cost-effective customer acquisition channel," said Mr Parker.
E.L.&C.Baillieu Stockbroking conducted the share offer on behalf of Spectrum.
For media enquiries, please contact:
Paul Cross, General Manager - Corporate Affairs
(03) 9276 8394 or 0413 265 056
About Spectrum Equity Investors
Spectrum Equity Investors is a private equity firm focused on investing in profitable, growing information services, media, and software businesses. Founded in 1994 with offices in Boston and California, Spectrum manages more than $4.7 billion in capital across six funds. Spectrum has been an active investor in online media franchises including Ancestry.com (NASDAQ: ACOM), Demand Media (NYSE: DMD), ITA Software, NetQuote (acquired by Bankrate) and SurveyMonkey, as well as electronic information service providers such as iPay Technologies (acquired by Jack Henry & Associates), Passport Health Communications, RiskMetrics Group (acquired by MSCI), Seisint (acquired by LexisNexis/Reed Elsevier), and World-Check.
About E.L. & C. Baillieu Stockbroking Ltd
E.L. & C. Baillieu Stockbroking Ltd is a Participating Organisation of the Australian Stock Exchange Limited. The firm commenced business in 1889, some five years after The Stock Exchange of Melbourne was founded.
E.L. & C. Baillieu Stockbroking Ltd offers Retail Broking, Institutional Broking, Research, Corporate Finance, Wealth Management and other supporting financial services.
Since its inception, E.L. & C. Baillieu Stockbroking Ltd has encouraged and assisted private investors. It views their interests and needs as being as important as those of institutional investors. We have a tradition, going back 100 years of acting in the best interests of our clients at all times, with the paramount intention of maximising their wealth. This firm has been tested by time.
25 February 2011 -
Private health insurance price rise means time to reassess for 1.9 million1 Australians
Results of an iSelect poll2 (completed in the last week) show a quarter (25%) of Australians with private health insurance are very likely to reassess their cover as a result of the price increase announced today.
The national poll, commissioned by iSelect, provides a snapshot of the current financial situation of the average Australian (currently holding private health insurance), and the impact rising prices, such as health insurance, will have on their household budgets. The findings show Australians are feeling the pinch financially, as the Federal Government today announced a 5.57% average increase in health insurance premiums.
According to Paul Cross, iSelect's General Manager of Corporate Affairs, private health insurance is one rising cost that Australians can do something about. He actively encourages Australians to now consider their options carefully.
"The 5.57% announced today is the average increase consumers can expect – so in reality, some will end up paying more.
"In addition, people need to be aware the price range between similar policies can be substantial, often hundreds of dollars a year, making it all the more important that people shop around and understand their options.
"More than 10 million Australians of all ages are currently covered by private health insurance3. It's one of the most important investments we make during our lifetime. It provides peace of mind and access to medical treatment when you need it. In addition, if you earn over $77,000 per year, you'll pay an extra 1% in tax if you don't have private health insurance.
"Australians have choices when it comes to private health insurance – by shopping around using a comparison site, they will be able to better ensure they have a policy that suits their needs and their budget," he said.
Other key findings of the poll include:
- Two thirds (66%) say the cost of private health insurance has a significant impact on their household budget;
- More than a third (36%) are not sure they are getting value for money from their private health insurance;
- An overwhelming 97% are concerned about rising household costs overall; and
- Over half (58%) reporting they are either 'on a financial knife-edge' or 'money is tight'.
"This poll shows that the majority of are concerned about rising prices and are really feeling the pinch, and there is also a lack of confidence in value. Now is the time to review your insurance, and make sure you have a policy that suits your actual needs and budget," he concluded.
Australians keen to get a better deal on their insurance should visit www.iselect.com.au or phone 13 19 20.
1 The poll showed 25% of Australians aged 18-60 with private health insurance are very likely to reassess their/their family's need for cover as a result of a price increase. 10,064,043 Australians have private health insurance (see footnote 3), 7,925,768 of whom are aged 0-60 years.
2 Research methodology: This research was conducted by StollzNow Research (14-18th February 2011) among 1,003 Australians nationally (18-60 years old) who currently have private health insurance.
3 10,064,043 Private Health Insurance Administration Council Quarterly Statistics report, Sept 2010.
23 February 2010 -
Private Health Insurance Premiums Set to Soar
The Federal Government today announced they have approved an average 5.78% rise in Private Health Insurance premiums. The increase means the price of Health Insurance will increase by around 2.7 times the inflation rate and continues the trend of 'medical inflation' outstripping the CPI. Families are likely to be slugged up to an extra $200 a year from 1st April. Today's announcement will again leave families struggling to balance the household budget.
Premiums have risen by around 73% since 2002. Over the same period the CPI has risen 29% meaning that the real cost of Private Health Insurance has increased by around 44% in real terms above the inflation rate.
Price increases are a fact of life and the reality is that hospitals and doctors continue to increase their fees each year. Pharmaceutical costs rise and medical technology improvement's contribute to the cost increase and these increases are ultimately passed on by the funds to the consumer.
Roger McBride from iSelect, Australia's largest private health insurance comparison and advisory service, said that "despite the cost increases we have seen a increase in consumers taking out Private Health insurance with adoption levels now reaching 44.7% of the population (as at December 2009). This high adoption rate is driven in part by a lack of trust in the public system. Consumers are looking at the public system and they are rightly concerned, they are willing to dig deep, even in tough times, for the peace of mind of having Private Health Cover. This is despite rising costs and tax changes to the Medicare Levy Surcharge" he said.
Roger McBride says "consumers more than ever must look at how they can cut the cost or increase the value of what they are getting from their health cover. After all, it's a competitive market with 37 health insurers out there vying for your health insurance business".
It seems you can't change rising health premiums. But you can change to a smarter plan, Roger McBride of iSelect explains "we often see people that are paying a higher premium than they need to just because they don't have time to trawl through the myriad of policy options out there, let alone understand the fine print or terminology".
Need to Review Your Policy
Rising private health insurance costs have consumers increasingly reviewing Private Health Insurance, however, according to iSelect a massive 54% of people have never reviewed their Private Health Cover and a further 19% have not reviewed their cover for between 5 and 10 years.
"With ever changing circumstances and large variances in costs between funds it's vital to review your cover to ensure its right for your current health and family circumstances" Roger said.
The 54% or around 5 million consumers may be either over or under insured, but importantly they may have been paying for inappropriate cover for many years.
iSelect's top 5 tips for dealing with the Private Health Insurance Premium increase
Cut your premium
Don't pay for unnecessary benefits or cover you may not use or want. Also premiums can vary significantly between similar policies and it's important to shop around. Optimise your level of excess balanced against your likelihood of hospital visitation over the net two years as different excess levels will impact your premium significantly, potentially wiping out the the effect of the latest increase.
Give your policy a health check
Shop around and compare what else is available - another similar policy may provide a greater level of benefit suited to your needs. Services like iSelect compare a range of health insurers and rank the features and benefits between selected funds and help you to understand the important things to consider before choosing a policy. Remember your right to switch between providers is protected by law and can be done at any time. When moving to a similar or lower level of cover you generally wont have to re-serve waiting periods.
Avoid taxes and penalties
Dropping hospital cover may expose you to penalties such as the Medicare Levy Surcharge (1% additional tax charge) and Lifetime Health Cover loading applied as a 2% price increase to the cost of your Hospital policy for every year you're without cover above the age of 31. It's also important you keep abreast of any changes to government incentives and penalties that apply to Private Health Insurance.
Plan ahead -- especially for babies
When selecting the policy that's right for you consider not just your current needs but your likely circumstances over the next two years. Remember waiting periods apply to such things as pregnancy or pre-existing conditions. When your circumstances change it is time to review your Private Health Insurance. iSelect fields thousands of enquiries each year from couples failing to take out cover before starting a family.
Maximise your extras
Consider the need for both Hospital and Extras cover. Extras is where you can claim on everyday out of pocket expenses on things like dental, optical, chiro, physio and other items, so you need to maximise the benefits and minimise the cost.
2 March 2009 -
Health Insurance Increases - Review Your Options
The overall jump in private health insurance premiums announced today of 6.02% may mean that some of the 11 million Australians with private health insurance will look to review their cover.
However, iSelect has warned people and especially families against making any rash decisions about their health insurance.
“In these difficult times most of us are a lot more careful about parting with our hard-earned cash in light of the current economic situation,” said Gerald Brown, acting Chief Executive Officer of iSelect, Australia's largest private health insurance comparison and advisory service.
“Health insurance, whilst seen as a necessity by many, is as a result of the announced increases subject to those same pressures.
“In considering these pressures and when weighing up options, iSelect finds that people often forget about the additional taxes they may have to pay without private cover or the length of time it can take to be treated in the public system.
Gerald added, “more importantly, families and individuals with private cover should take this time to give their policy a health check and make sure they are not paying more than they need to.
“iSelect often sees people that are paying a higher premium than they need to just because they don't have time to trawl through the web of policy options. And others may be on a policy that simply does not provide the right cover for their current circumstances or life stage”, Gerald said.
“For example, a younger family with top hospital and extras cover, through introduction of an excess payable when admitted to hospital and removing procedures such as hip and knee replacements, dialysis and major eye surgery, could reduce their premium by nearly $1000 a year in some cases.
“My advice is to talk to an advisory organisation or jump on one of the comparative websites before making any longer term decisions.
“And for the 11 million Australians that have private health insurance: remember, you do have choice” Gerald emphasised.
ISELECT’S top 5 TIPS FOR DEALING WITH THE HEALTH INSURANCE PREMIUM RISE
- Look at ways to reduce your premium
- Give your policy a health check
- Understand any costs and penalties of letting go of your cover
- Consider the health needs of you and/or your family for today and tomorrow - remember that waiting periods generally apply
- Consider whether you need both hospital and extras cover
Don't pay for unnecessary benefits or cover you may not want. Also premiums can vary significantly between similar policies
Shop around and compare what else is available - another similar policy may provide a greater level of benefit suited to your needs. Services like iSelect compare a range of health insurers
Dropping hospital cover may expose you to penalties such as the Medicare Levy Surcharge and Lifetime Health Cover
