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?
YES
BUT
The rate of switching
is still not material
Should we be worried?
Should we be worried?
IT
DEPENDS
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 ...
Telco switching
“Almost half of Australian mobile phone
subscribers have switched providers in the past
three years, and 4...
Ombudsman complaints
Ombudsman complaints
PHI vs Telco complaints
Why don’t more people switch?
Product design
Regulatory framework
Premium variability
Premium increases +/- 2% from industry average
2004-2008 2009-2014
Why don’t more people switch?
Too complicated
Too much effort
Too 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 – Hea...
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Rob Seljak - Teachers Union Health (TUH) - Why don’t more people switch health funds?

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Rob Seljak delivered the presentation at the 2014 Health Insurance Summit.

The 2014 Health Insurance Summit focused on how legislative changes affect the future of health insurance in funding, membership and services.

For more information about the event, please visit: http://bit.ly/HISummit14

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Rob Seljak - Teachers Union Health (TUH) - Why don’t more people switch health funds?

  1. 1. Why don’t more people switch health funds? Rob Seljak CEO, TUH
  2. 2. How many switch?
  3. 3. How many switch?
  4. 4. Are more people switching?
  5. 5. Are more people switching? YES BUT The rate of switching is still not material
  6. 6. Should we be worried?
  7. 7. Should we be worried? IT DEPENDS
  8. 8. Why do people switch? 49% 39% 32%
  9. 9. How about intermediaries?
  10. 10. Why don’t more people switch?
  11. 11. 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 Garth CEO, PHIAC
  12. 12. 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
  13. 13. Ombudsman complaints
  14. 14. Ombudsman complaints PHI vs Telco complaints
  15. 15. Why don’t more people switch?
  16. 16. Product design
  17. 17. Regulatory framework
  18. 18. Premium variability Premium increases +/- 2% from industry average 2004-2008 2009-2014
  19. 19. Why don’t more people switch? Too complicated Too much effort Too time consuming (IPSOS) BUT WE TELL THEM IT’S EASY!
  20. 20. Transfer process Slow
  21. 21. Transfer process
  22. 22. Transfer process Bureaucratic
  23. 23. Transfer process Not enforced
  24. 24. Awareness of Transfer Rules
  25. 25. What would cause more people to switch?
  26. 26. Questions
  27. 27. Thank you Sources: • PHIAC - Portability, switching and competition in the Australian PHI market – July 2013 • IPSOS – Health Care and Insurance Australia Report - 2013

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