Health Insurance Becomes More Popular in a Pandemic

Private Health Insurers Medibank Private and NIB Holdings had an odd 2020. Hospital procedures declined materially due to lockdowns and patient fear, as did visits to the dentist, physio, optometrist and so on. Anything that could be put off was. It did not mean a massive uplift in profit for the health insurers though. Private health insurers took material provisions on the basis a large catch up would occur, assuming 85%-100% of deferred hospital procedures would be caught up in the short term, as well as 50%-70% of ancillary claims. Insurers also paused planned premium increases which had been approved to cover inflation in claims, and gave members needing assistance premium waivers and discounts.