tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Sunday, November 3rd, 1:12PM

Insurance

rss
Latest Headlines

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.

Key Stats
  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  

 

Tags: ANZ health insurance nib OnePath Rob Hennin

« AIA expands cancer benefit reachTrade Me: We still back LifeDirect »

Special Offers

Comments from our readers

On 30 August 2017 at 9:48 am LNF said:
now selling half of its policies directly to consumers - in competition with it's Adviser market

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

nib launches tool to support women through menopause
nib has launched a new health management programme designed to support women as they navigate the stages of perimenopause and menopause.

Employees are wanting health and life insurance
A new survey shows potential employees what life and health insurance benefits, but less than a third of employers plan to offer such benefits.

Chubb Life makes changes to trauma benefit
Chubb Life has made a series of enhancements to its Assurance Extra and Assurance Extra Business policies, including the addition of a new Continuous Trauma Benefit,

Resolution Life gets new president
Global life insurance group Resolution Life has appointed Moses Ojeisekhoba as its new President.

News Bites
Latest Comments
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x