For the seventh year in a row Southern Cross Health Society has increased its membership. It now sits at 908,000, which is 20,000 higher than its 2019-2021 financial year total.
The society’s CEO Nick Astwick says Covid-19 cast a light on the value New Zealanders place on healthcare.
“We’re seeing a rise in the number of people who see health insurance as a very important part of their wraparound health support,” he said. “It’s also very pleasing to see more business customers investing in health insurance for their people this year.”
In figures just released, the society paid $1.08 billion in claims during the financial year to 30 June 2022. Income received from premiums totalled $1.35 billion during the same period.
The Southern Cross group also delivered a higher-than-expected surplus of $90 million for the year.
Astwick says the surplus is due to a lower volume of claims as members were unable to access treatment due to Covid-19 lockdowns, illness in the community, and reduced provider capacity.
“We’re expecting to see much higher claims costs and volume next year [July to June 2023], as those who delayed seeking treatment will now seek access to healthcare,” says Astwick.
“This, combined with a challenging high inflation environment, would usually indicate a need to adjust premiums upwards at a sharper rate. We’re seeking to avoid significant premium volatility for our members, so we will apply a large portion of the surplus toward keeping premium increases as low as possible.”