Australia: Health insurance funds see fall in profitability amidst pandemic
Source: Asia Insurance Review | Oct 2020
Data from the Australian Prudential Regulation Authority (APRA) have revealed that the impact of the COVID-19 pandemic has seen the net margin of private health insurance funds fall to a low of 2.8% in the year to June 2020, representing a 42% decline in profitability.
In a statement, Private Healthcare Australia CEO Dr Rachel David said the APRA data put to bed any suggestion that health funds made ‘windfall gains’ as a result of COVID-19 restrictions.
Overall benefits paid for health claims in 2019-20 fell by A$497m ($358m) or 2.4% from the previous year. The decrease is attributed to a six-week shutdown of elective surgery and some allied health providers because of the pandemic. A