Southern Cross Health Insurance is introducing benefit improvements to many of its policies this month following what it calls “a major product review”.
While not going into detail, Nick Astwick, CEO Southern Cross Health Society says the organisation is increasing benefits while also being “…mindful of costs to members and we’re using our contracting tools with providers accordingly”.
The annual report for the year to 30 June 2024 states it is removing excess payments on some benefits, rewriting policy documents in plain language, and “…making sure members are better informed about benefits”.
Astwick also states the group is working to meet its obligations under the Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI).
He says: “The introduction of CoFI has presented us with the opportunity to align our member-focused values and business practices with the regulatory expectation to treat our members fairly and to deliver fair outcomes.”
…In 2019 33% of our membership claimed, last year it was 50%…
Turning to the numbers, the group saw claims costs rise 15% in the year. Its annual report shows an after tax deficit of $88m. However, almost half of the deficit ($43m), is attributed to a change in international financial reporting standards, says Astwick.
Southern Cross Health Insurance paid $1.5bn in claims while premiums totalled $1.6bn for the 2023 year.
“In 2019 33% of our membership claimed, last year it was 50%,” says Astwick. “The cost of claims in 2024 was steep and rapid, driven by a combination of price, volume, and the mix of claims.
“More than 93% of premiums were returned to our membership in claims for their private healthcare this year.”
The society has a growing membership, up 15,000 on the 2022 year to more than 955,000.