Challenge to grow insurance market: Southern Cross

Both claims and premiums increased in the 2013 financial year for the country’s largest health insurer.

Southern Cross Medical Care Society earned $725.5 million in premiums, up 2.6% on 2012, and incurred $639.1 million in claims, up 5.5%.

Chief executive Peter Tynan said that meant that for every dollar received in premium income, more than 88 cents was returned to members in claims.

Despite that, the annual surplus for the year was within the budgeted range - at $22.1 million. 

He said the health insurance market was struggling to attract new customers. Over the past year the health insurance sector as a whole saw a small decline of 0.7% in the number of New Zealanders with health insurance. 

The society reported a decrease of 0.5%.  Its market share increased slightly from 61% to 61.1%. It ended the financial year with 817,822 members.