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APRA releases quarterly private health insurance statistics for June 2021

Tuesday 17 August 2021

The Australian Prudential Regulation Authority (APRA) has released its quarterly private health insurance (PHI) publications for the June 2021 quarter.

The publications provide industry aggregate summaries of key financial and membership statistics for the private health insurance industry. 

In the year to 30 June 2021, industry profitability improved, driven by stronger insurance profits and investment income for the year.  

Premium growth increased, following reductions in the year to June 2020. Claims growth remained flat, and was partially impacted by movements in insurers’ Deferred Claims Liabilities (DCL). Net margins increased to 5.0 per cent in the year ending 30 June 2021.

The ongoing uncertainty in relation to COVID-19 impacts on future claims, particularly given the current lockdowns in many areas, makes it more challenging for the industry to assess the the near-term direction of the DCL. 

Industry’s commitment not to profit from COVID-19 has seen some PHIs announce their intention to return surplus funds to their policyholders while others are continuing to monitor experience and exploring options. APRA endorses the position that insurers should not profit from COVID-19 and notes that the method and timing of the return of any COVID-19 related profits is a matter for an insurer’s Board and senior management to determine.

Hospital treatment membership increased by 245,189 persons during the year to 30 June 2021. The longer-term ageing trend in hospital membership continued, with membership in the 50+ age group increasing by 122,786 persons compared with an increase of 70,389 in the number of insured persons aged 20 to 49. 

Key performance statistics for the industry in the year ended:

 

June 2020

June 2021

Change (annual)

Premium revenue

$24.9 bn

$25.7 bn

3.2%

Fund benefits (claims)

$21.9 bn

$22.0 bn

0.3%

Gross margin

12.0%

14.5%

2.4pp

Net margin

2.8%

5.0%

2.3pp

Net investment income

$146.2 m

$603.9 m

313.2%

Net profit after tax

$754.0 m

$1.5 bn

93.7%

Copies of the June 2021 quarterly publications are available on APRA’s website at: Quarterly private health insurance statistics.

Statistics

For more information

Email dataanalytics@apra.gov.au or mail to

Manager, External Data Reporting – Data Analytics and Insights
Australian Prudential Regulation Authority
GPO Box 9836, Sydney NSW 2001

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