The Health Insurance industry is an integral part of the Australian health system, providing coverage to almost 47.0% of the population. Health insurers generate revenue from the sale of health insurance policies (premium income) and the investment of premium reserves (investment income). Premium income accounts for more than 95.0% of revenue, although this changes from year to year. Industry revenue is forecast to grow by 3.9% in 2014-15, to reach $20.8 billion, on the back of strong growth in premium income. Over the five years through 2014-15, industry revenue is expected to grow at an annualised 5.1%.
This industry includes businesses that primarily underwrite insurance policies relating to health and medical risks. Underwriting insurance policies involves assuming risks and assigning premiums. The type of insurance cover provided by businesses operating in the industry is for hospital, medical, dental, pharmaceutical and funeral expenses or costs. Businesses within the industry generate revenue not only through insurance underwriting but also by investing premiums.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.