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Uninsured market indecisive about uptake of Health Insurance

Source: Roy Morgan Single Source (Australia), 12 month rolling average, Average sample = 9,560
Base: Australians 14+ not covered by Private Health Insurance

More than half of the Australian population, 14+ (54.4%) are without Private Health Insurance. Of the 9.4 million Australians who aren’t currently covered, 1.2 million (13.2%)  “intend to  take up Private Health Insurance” in the next 12 months, 3.8 million “will not take up cover” (40.0%)  and 4.4 million are “undecided” (46.8%).  These are the latest results from the Roy Morgan Consumer Single Source Survey to June 2013.

Following the legislative changes to the rebate tier system which took place from July 2012, there is a steadily increasing proportion of the uninsured market undecided as to their intentions regarding Private Health Insurance, (from 41.9% in June 2011 to 46.8% in the year to June 2013).

Private Health Insurance Intentions in the next year – Uninsured market

health-insurance-chart
Source:Roy Morgan Single Source (Australia), 12 month rolling average, Average sample = 9,560. Base: Australians 14+ not covered by Private Health Insurance. “Undecided about taking up Health Insurance” consists of “Will Shop around and then decide”, “Don’t Know” and “Can’t Say”

Analysis of those intending to enter the market again or for the first time reveals that only 713,000 or 57.1% nominated an intended Health insurance brand. More than a quarter of this segment (28.7%) intend to choose Medibank.

Norman Morris, Industry Communications Director, Roy Morgan Research, says:

“Following the introduction of the changes to the Health Insurance  rebate tier system which took place in July last year, there is a rising incidence of indecisiveness among those who were never insured or have lapsed policies.

“Perceptions of high premiums, negative claims experiences, lack of use and change in family circumstances have led them to leave or remain outside of the Private Health Insurance market

“An opportunity exists for Health Insurance companies and brokers to use varied mediums to properly inform and educate this segment as to the choices available to them appropriate to their lifestage and income.”

“With over half a million of those intending to take out health insurance in the next 12 months not nominating a likely brand, there is a big opportunity for providers to increase their awareness in this market.”

For comments or more information please contact:
Norman Morris
Industry Communications Director
Office: +61 (3) 9224 5172
Mobile: +61 402 014 474
Norman.Morris@roymorgan.com

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Roy Morgan Single Source is based on over 50,000 interviews each year and has been designed and engineered to represent the ideal source model. It provides an integrated understanding of consumers; what they are like, what they consume, what they buy, what they think, what they want, what they watch, read and listen to. The overriding benefit of Roy Morgan Single Source is the strategic insights it offers in the ability to link many aspects. Not only can an organisation’s profitable customers be delineated by what they think, do, watch, but so can non customers. Hence brand positioning, product differentiation, merchandising, efficient media planning, market expansion and line extension opportunities can all be considered in the light of the correct understanding of the marketplace.

About Roy Morgan Research

Roy Morgan Research is the largest independent Australian research company, with offices in each state of Australia, as well as in New Zealand, the United States and the United Kingdom. A full service research organisation specialising in omnibus and syndicated data, Roy Morgan Research has over 70 years’ experience in collecting objective, independent information on consumers.

In Australia, Roy Morgan Research is considered to be the authoritative source of information on financial behaviour, readership, voting intentions and consumer confidence. Roy Morgan Research is a specialist in recontact customised surveys which provide invaluable and effective qualitative and quantitative information regarding customers and target markets.

Margin of Error

The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.

Sample Size

Percentage Estimate

40%-60%

25% or 75%

10% or 90%

5% or 95%

5,000

±1.4

±1.2

±0.8

±0.6

20,000

±0.7

±0.6

±0.4

±0.3

50,000

±0.4

±0.4

±0.3

±0.2