After seven months of steady decline for Medibank in customer satisfaction, positioning it below its peers, the Health Insurance giant has shown some improvement in satisfaction ratings over the last quarter and is now on par with NIB (72.2%), while still behind BUPA (73.3%) and HCF (73.5%). These are the latest findings from the Roy Morgan Consumer Single Source Survey of over 50,000 interviews per annum.
With the annual increase in premiums announced earlier this year, the two dominant players in the market, BUPA and Medibank, kept their increases in line with the industry average of 6.2% and as a result both showed an increase in satisfaction.
Medibank saw the highest increase in satisfaction compared to a quarter ago (1.3% to 72.2%). Funds such as NIB (premiums up by 7.99%), HCF (premiums up by 6.89%) and Australian Unity (premiums up by 6.62%) that increased their premiums above the industry average have all shown a decline in satisfaction since January 2014.
Customer Satisfaction — Private Health Insurers
Source: Roy Morgan Single Source (Australia), 12 month moving average to May 2014, average sample size = 23,623. Base:Australians 14+ who hold Private Health Insurance
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“The results of this survey show that movements in health insurance rates do have an impact on customer satisfaction, particularly if they are above market rates as this will ultimately affect market share.
“Since the announcement earlier this year about premium increases to health insurance, there have been widespread market movements and effects on customer satisfaction.
“Strong competition for customer acquisition and retention remains between the dominant players in this highly dynamic marketplace where premium increases and competitive rates play a key part.”
Roy Morgan Research
Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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