2.6 million Australians don’t have health insurance

Meanwhile, general insurance gained more traction due to increased awareness.

An estimated 2.6 million Australians currently without health insurance are interested in obtaining coverage. This potential market, primarily aged 18-34 with an average income of $78,000, represents a substantial opportunity for insurers, Investment Trends said in their latest report.

Key factors influencing their decision to select an insurer include policy pros and cons (49%), discounts (48%), and the impact of government policies (41%).

The report also highlights that consumers generally find the process of applying for health insurance straightforward, with 51% finding it easy to track application status and 44% finding application forms manageable. 

However, providing supporting documentation remains a significant pain point, with only 5% finding it easy. 

Health insurance accounted for the largest volume of claims (84%) last year, mostly through online portals (56%) or at medical facilities (34%). Claims made through online chat services, although underutilized (3%), had the quickest outcomes, suggesting an opportunity for better promotion.

General insurance

Meanwhile, 45% of Australian consumers now consider general insurance more important than before the pandemic, driven by increased awareness of risks such as property damage (35%), financial loss (28%), and personal safety (22%).

When selecting a general insurance provider, Australians prioritize reputable brands (42%), low premiums (37%), and existing relationships (21%). 

Additionally, consumers value a seamless online experience and efficient claims processing. Transparency, customer service, and digital engagement are also crucial in meeting evolving expectations.

The findings indicate a significant shift in customer behaviour, with 80% of general insurance policyholders open to switching providers in the future. 

For these consumers, premiums and rewards are more important than brand reputation. As consumer behaviour continues to evolve, driven by global events and local realities, the insurance industry must respond with innovative, customer-centric strategies.