nib New Zealand has reported on the half year results that were presented in a webcast by nib holdings limited. nib New Zealand CEO Rob Hennin has said that the results to 31 December 2020 were pleasing. Hennin noted that there were 3,135 new policies in the past 12 months, this is a 2.8% increase in health insurance coverage. nib also found that claims increased 7.6% as members were seeking medical care after lockdown. Hennin continued by explaining that $6.5 million claims catch-up provision has been released.
“nib New Zealand today announced its results for the six months to 31 December 2020 (1H21) with premium revenue up 7.9% to NZD$136.1 million and underwriting result1 of NZD$12.3 million broadly in line with same period last year (1H20: NZD$12.6 million).
nib New Zealand Chief Executive Officer, Rob Hennin said overall the result was pleasing with earnings stable as healthcare treatment bounced back following COVID-19 restrictions.
“Despite uncertain market conditions, over the past 12 months we grew New Zealand residents health insurance coverage by 2.8%, adding 3,135 new policies,” Mr Hennin said.
“Our first half result also shows claims increased 7.6% as members head back to their medical professional or seek treatment following first wave of COVID-19 restrictions.
“We know from our claims experience that many of our members either had healthcare treatment delayed or chose to stay away from hospitals during the peak of the pandemic,” he said.
“Its great members are now feeling more confident and getting the necessary healthcare treatment. Recognising some healthcare treatment in FY20 was simply deferred not cancelled during COVID-19, nib set aside a provision meet this expected claims catch-up over the course of FY21. As at 31 December 2020, NZD$6.5 million of the NZD$9.0 million provision has been released,” he added.
Hennin revealed since lockdown, neurological, cardio-thoracic surgery, diagnostics, and gynaecological claims have experienced the largest increase. It was revealed that the nib Group member support package is more than $45 million. The package includes:
- financial hardship premium relief
- suspension options
- pre-approval extensions
- expanded coverage
- Lifeline Aotearoa and Clearhead support
The procedures that have experienced the largest increase following the initial lockdown (relative to pre-pandemic claims activity) were:
- Neurological: 116% increase
- Cardio-thoracic surgery: 49% increase
- Diagnostics: 38% increase
- Gynaecological: 36% increase
“To date our nib Group member support package totals more than $45 million, and includes financial hardship premium relief, suspension options, automatic six-month pre-approval extensions and expanded coverage for COVID-19 related treatment at no cost,” he said.
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