Bupa considering millennial-focused model
One of Australia's largest insurers is looking into a subscription model for "health and wellness" benefits.
Bupa is trying to win over the millennial market after data from the Australian Prudential Regulation Authority (APRA) revealed that more young people are avoiding hospital cover, according to the Australian Financial Review (AFR).
While recent reforms in the Australian private health insurance market, such as the ability to offer discounted premiums to those under 30, were designed to entice young people into taking out cover, the managing director of health insurance at Bupa, Dwayne Crombie, said these reforms don't impact the fundamental issue of the cost of health care.
According to the AFR, Crombie said that millennial Australians are really interested in health and well-being benefits but are not necessarily interested in private health insurance.
He posited that those who couldn't afford cover may be able to enter into a subscription style model for those services.
While this model won't help combat the lack of millennials taking out private hospital cover, it could at least help those who want to have extras style cover.
Crombie said that millennials are used to paying $10 for various services, and by tapping into this market, health insurers might be able to secure customers who don't like the idea of buying health insurance.
If you're looking to take out health insurance, make sure you compare your options before you take out cover.
Compare your health insurance options today
- Money Hacks: Save money on your New Year’s health resolution
- Private health insurance premiums to rise by 3.25% in 2019
- How to opt-out of My Health Record top Google search for Australians
- Australia is divided on whether genetic testing for setting life insurance premiums is fair
- Waiting times for elective surgeries rise