Australians hold their health insurance cover for a decade or even more and almost 50% of them never switch funds according to a new survey.
A new survey conducted by Money.com.au revealed that Australians with private health insurance have held their cover for an average of 10 years, yet almost half (46%) have never switched health funds.
The research found a third of policyholders (33%) have switched health insurance only once since first taking out their cover, while 16% have switched two or three times. Just 5% say they’ve switched four or more times since being insured.
Money.com.au general manager health insurance Chris Whitelaw said Australians aren’t shopping around regularly enough to get better value from their health cover.
“Premiums rise annually, yet many Australians continue with the same fund or cover year after year. As a result, they’re often paying too much for their policy or for cover that no longer suits their life stage, and in many cases, both.”
He said, “In many ways, our health is our biggest asset, so we should treat health insurance like any other financial product. We should be comparing policies every 12 months to make sure we are still getting a competitive deal on our current cover or switch to a health fund that will give one.”
Gen Z are the most likely to have never switched health funds, with 58% saying they’ve stayed with the same provider since taking out their policy, though they’ve only held cover for an average of six years. In comparison, 48% of Millennials haven’t switched funds after an average of seven years of cover, while 44% of Gen X remain with the same fund after around 11 years. Baby Boomers are the most seasoned policyholders, holding cover for an average of 13 years, with 42% saying they have never switched.
Mr Whitelaw said, “It is expected that older Australians have held their health cover for longer, but what’s concerning is how few review or switch their policy as their circumstances change. Your cover should evolve with your life — whether that’s starting a family, retiring, or managing new health needs.”