It may hold just a 4 per cent share of Western Australia’s private health insurance sector but Health Insurance Fund has found a market niche via its provision of tailored hospital and ancillary care benefits packages to more than 40,000 people.
It may hold just a 4 per cent share of Western Australia’s private health insurance sector but Health Insurance Fund has found a market niche via its provision of tailored hospital and ancillary care benefits packages to more than 40,000 people.
In a financial year of firsts, former commercial manager and new HIF chief executive, Graeme Gibson, has watched HIF break financial and membership records, launch its first television advertising campaign and deliver WA’s first dental benefits package, endorsed by the Australian Dental Association of WA.
With the future of Medibank Private dominating public debate at present, HIF is keen to explore potential opportunities arising from any sale and break-up of Medibank.
Mr Gibson said HIF was well positioned to utilise its financial resources and was prepared to look at a number of opportunities to increase its membership.
“HIF would not shy away from taking a fairly sizeable portion of the WA market, but who knows what will happen,” he said.
“A public float would not be in the best interests of the consumer… we still need a greater level of competition in the market.”
Medibank Private currently holds a market share in WA of approximately 19 per cent, or 107,000 members, while HBF dominates with a 65 per cent share, representing more than 365,000 members out of a total of 562,000 privately insured individuals in WA.
Building on the work of former chief executive Steve Brown, Mr Gibson has since November last year undertaken detailed research to better understand its members, products and associated costs.
The certified practicing accountant believes an insurer cannot afford to deliver better benefits to members when it does not understand its costs.
“One of the key things I have brought to the role is a particularly strong focus on product knowledge. We have a range of products, under which members behave in different ways,” Mr Gibson said.
“You need to be more granular, and understand the product on an individual basis and the mathematical dynamic that underpins it; this is important in being able to make decisions on how to implement a greater range of benefits in the future.”
One area of HIF’s business currently under review is its optical retail arm at Kingsway Shopping Centre, MaximEyes, of which it owns a 51 per cent controlling stake.
Mr Gibson said the business was focused on ensuring the service provided was done well, and for the right reasons.
It was not inconceivable that HIF would look at other greenfield development opportunities and health care centre joint ventures with either of its top four ancillary providers of dental, optical, physiotherapy, and chiropractic care, he said.
At the same time, Mr Gibson said, HIF was mindful of its competitors’ moves into the provision of financial services, and of interest in the local market from operators in the eastern states.
“I take my hat off to HBF on that point, it’s certainly something that is attracting the attention of other organisations like RAC,” Mr Gibson said.
“But HIF wants to remain focused on what its good at, and that is private health insurance for the benefit of our members. Our philosophy is to be a leader, not a follower.”
HIF has corporate alliances with Western QBE, CGU and StateWest Credit Society, and with the impending merger of the latter with Home Building Society, the fund is spying yet another opportunity on the horizon.
