Partners Life has announced a medical premium increase due to rising medical health costs which it says are forcing insurers to review their medical premiums more frequently.
In an Adviser Update the insurer says that from July 22 2025, Private Medical Cover (including Specialists and Tests Option) premiums will increase by 2% for new clients.
“This means for existing clients with anniversaries on, or after, 22 July 2025, the annual increase will be 20%.”
It says that its last Private Medical Cover premium increase was in April this year (see: Product and Pricing Changes).
“We understand that premium increases are never welcome news, but making a smaller increase now instead of waiting for our next annual pricing review allows us to make the right pricing adjustment that fairly reflects the market we’re operating in.”
The company says that based on this, it intends to review prices regularly throughout the year.
“We’re keeping a close watch on the market and responding with fair, accurate pricing changes when we need to,” it adds.
“These are challenging times for our industry and that includes the uncertainty around premiums. However, increasing our premiums helps ensure that we can continue to offer … benefits such as non-Pharmac cover, guaranteed upgrades, and more,” Partners Life states.
…Rising medical costs and an increased volume of claims are just some of the drivers putting pressure on pricing across the entire market…
In a FAQ document the insurer explains that across the world and in New Zealand, the medical insurance industry is operating in a challenging environment.
“These are unprecedented times. Rising medical costs and an increased volume of claims are just some of the drivers putting pressure on pricing across the entire market.
“Here are a few numbers to think about: During our 2024 financial year, around 16,000 new clients have chosen to take up our private medical cover and we’ve reported a 16% increase in the amount paid in health insurance claims compared to our 2023 financial year.”
It adds that medical costs including pharmaceuticals, specialist services and technology continue to add to the rising cost of claims.
“Contributing to this perfect storm, public health systems around the world and … in New Zealand are struggling to cope so more people are taking the private healthcare option.”
Click here to see Partners Life’ FAQs.