16% plan insurance exit as Australian premiums spike

But 41% of Australians will keep their current provider.

Nearly a fifth (16%) of Australians intend to drop their insurance policies, coinciding with a 3.73% premium increase set for 1 April, the largest in seven years. 

According to a survey of 1,012 by Finder, this is equivalent to 3.3 million people.

The study also found that 41% of Australians will keep their current provider, whilst 16% will switch if they find a better deal. 

Meanwhile, 22%—about 4.6 million people—do not have private health insurance.  

Finder health insurance expert Tim Bennett attributed the trend to rising living costs, urging policyholders to consider adjusting their coverage instead of canceling outright. 

The average monthly cost of a mid-range hospital cover is expected to rise from A$154 to A$160, an additional A$72 annually.  

Young Australians are the most likely to drop their coverage, with 25% of Gen Z and 20% of Gen Y planning to cancel by the end of the year.

Bennett advised policyholders to review their options now, suggesting strategies like reducing coverage, increasing excess, or prepaying premiums for the year to avoid rate hikes. 

He warned that whilst canceling insurance may provide short-term savings, it could lead to higher out-of-pocket expenses and longer wait times for medical services.