Media Release

4.1 million Australians may cut ties with their health insurance provider in 2021

        • Over a quarter (28%) of health insurance customers plan to switch this year
        • Premiums set to increase by 2.74% this year
        • How to lower the cost of your health insurance premium

16 February 2021, Sydney, Australia – Millions of Australians are shopping around for cheaper health insurance in the new year, according to new research by Finder, Australia's most visited comparison site.

A new, nationally representative Finder survey of 671 health fund members has revealed that 28% are considering switching to a better deal this year, while 12% plan to cancel their cover altogether.

With nearly 10.3 million Aussies covered by private health insurance, that's equivalent to 4.1 million who may cut ties with their current provider to save money in 2021.

Health insurance premiums are set to increase by 2.74% on 1 April, costing families an estimated extra $126 per year on average.

Taylor Blackburn, insurance specialist at Finder, said that with premiums increasing in April, now is the time to compare health policies.

"Switching to a better deal on your health insurance could save you over $500 per year in some cases – that's a pretty easy way to pad your pocket.

"Beyond saving money on your premiums, some providers are offering perks like a free month of cover, up to $400 in gift cards or up to 140,000 Qantas Points.

"With insurance premiums increasing on 1 April, now is the time to start looking if you want to take out an affordable policy before the deadline," Blackburn said.

The research found more than half (56%) of Generation Z policyholders want to switch or ditch their cover before the end of the year, compared to 29% of Baby Boomers.

Victorians are the most loyal, with 60% planning to stay with their current insurer.

Blackburn urged health insurance consumers to review their health insurance policy before renewing it in April.

"Health insurance policies can be hard to understand but the new year is an ideal time to figure out if you are getting good value from your health insurance policy.

"Not only could there be a better deal within your tier of coverage, your current policy may cover too little or too much for you and your family needs," Blackburn said.

The survey found that up to 1.2 million Australians don't plan to renew their policy at all.

"There are ways you can reduce the cost of your policy without leaving yourself exposed with no coverage.

"From upping the excess to dropping to a basic plan, it's possible to reduce your monthly premium while retaining adequate health cover," Blackburn said.

Will you renew your health cover in 2021?
Yes, with the same insurer60%
Yes, but I might switch if there's a better deal 28%
No12%
Source: Finder survey of 671 health insurance customers, January 2021 Image


How to lower the cost of your health insurance premium:

  • Compare your options. Hospital insurance is split into tiers: basic, bronze, silver and gold. The coverage is relatively similar but prices can vary significantly. Work out what level of cover you need and pick a plan accordingly.
  • Ditch the couple's policy. A couple's policy will help you save on paperwork but doesn't work out to be any cheaper. In fact, one person may end up paying more than necessary for a level of cover they don't need, such as pregnancy cover.
  • Mix-and-match your hospital and extras cover. While combined cover may be more convenient, customers may receive better value or more tailored cover if they split their policy depending on their health requirements.

###

For further information

Disclaimer

The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.

About Finder

Every month 2.6 million unique visitors turn to Finder to save money and time, and to make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.

Our free service is 100% independently-owned by three Australians: Fred Schebesta, Frank Restuccia and Jeremy Cabral. Since launching in 2006, Finder has helped Aussies find what they need from 1,800+ brands across 100+ categories.

We continue to expand and launch around the globe, and now have offices in Australia, the United States, the United Kingdom, Canada, Poland and the Philippines. For further information visit www.finder.com.au.

12.6 million average unique monthly audience (June- September 2019), Nielsen Digital Panel

Go to site