nib grows market share and distribution
Health insurer nib continues to grow its market share in New Zealand and is now selling half of its policies directly to consumers.
Tuesday, August 22nd 2017, 10:58AM 1 Comment
The company reported improved top line growth and earnings during 12 months to June 30. Premium revenue lifted 14.9% to $210.9 million and underlying operating profit was up more than 35% to $24.7 million.
nib New Zealand chief executive, Rob Hennin, said the New Zealand full year result was pleasing and demonstrated the company’s determination to deliver real change in the local health insurance industry.
Since nib entered the market five years ago it has added direct distribution of simple health insurance products directly to consumers.
“Giving consumers the choice to purchase health insurance direct has been a massive success and the results speak for themselves,” Hennin says. “50% of our sales during the year were through this channel.”
“Providing an easy and simple online join process is also proving popular with seven out of 10 customers joining on the website,” he says.
There has also been a "significant" change in mix of policyholders with more than half being under the age of 40.
Most of the younger people come through either the direct channel or through group schemes.
Hennin says nib's market share has risen from 11% to 16% since it entered the market.
"Our white label channel capability and pipeline also continues to grow and we’ve committed additional effort and investment to expand these channels over the coming 12 months,” Hennin added.
"I'm really pleased with the way our business model is evolving."
He said there were three key target markets; millennials, new migrants and young families.
One of nib’s latest initiatives is the launch of the First Choice network next month. nib will pay 100% of eligible claims for treatment by nib First Choice providers ( (Details here)
“Like many other countries, the New Zealand healthcare industry is subject to huge medical cost variation with no evidence of better quality care or outcomes,” Hennin says.
“Our First Choice network is designed to help us better manage such claims costs while also providing customers with zero out-of-pocket medical treatment.”
Hennin says the acquisition of OnePath's medical book has gone well and ANZ have been supportive of distributing product through the bank network.
FY 2017 | FY 2016 | Change/Comment | |
Policyholder growth | - 5.2% | 25.8% | Loss of group account |
Premium revenue | $199.3 mill | $173.5 mill | Up 14.9% |
Claims | $120.9 mill | $121 mill | |
Gross underwriting result | $82.7 mill | $68.3 mill | |
Net Margin | 11.8% | 10.0% | |
Underlying operating profit | $23.5 mill | $17.3 mill | Up 35.8% |
Commissions paid | $30.4 mill | $25.6 mill |
« AIA expands cancer benefit reach | Trade Me: We still back LifeDirect » |
Special Offers
Comments from our readers
Sign In to add your comment
Printable version | Email to a friend |