Australian residents health insurance (arhi)
Our core earnings driver arhi delivered a strong result, with underlying growth in policyholders and favourable total claims expense. The 62.4% increase in UOP to $211.8 million includes a $55.9 million partial release of last year’s COVID-19 claims provision, offset by a 12.5% increase in nib member claims expense.
Heightened community awareness of health risk and financial protection as a result of the pandemic, and our diversified and multi-channel distribution strategy, helped deliver net policyholder growth of 4.2%, above industry growth of 3.1%.
New Zealand
nib New Zealand delivered another good result, reporting a 3.0% increase in UOP to $24.1 million. The result includes the full release of the $8.4 million COVID-19 claims provision.
Net policyholders grew by 1.6% due to the decrease in international students entering New Zealand. Excluding students, policyholders grew by 5.0%, supported by the performance of channels such as whitelabel partner, the New Zealand Automobile Association.
International inbound health insurance (iihi)
Our iihi business, comprising international students and workers, continues to be impacted by COVID-19, reporting a UOP loss of $5.9 million. Ongoing border closures and travel restrictions have limited new sales growth, resulting in a 6.5% decline in net policyholders and contributing to a step-up in claims expense of 38.8%.
We continue to support our members while addressing the current claims experience and improving service quality and efficiency. As borders re-open we anticipate a return to previous growth and earnings performance.
nib travel
Our travel insurance business experienced a sharp drop in gross written premium of 86.9% to $17.0 million due to the continued significant COVID-19 impacts on global travel. It reported a UOP loss of $13.6 million, an improvement on last year’s loss due to lower operational expenses.
Preparations for the return to travel are underway, including upgrading products with additional COVID-19 cover and operating efficiency improvements through digitisation.
COVID-19 member and community support package
As the pandemic has continued to evolve, so has the support we’ve provided to our members, employees and the general community, which to date totals $45 million.
As announced with our FY21 results, we will also return an additional $15 million of claims savings to members. The member and community support package includes expanded coverage for COVID-19 related treatment for all members, financial relief in the form of premium credits, delayed premium increases, waivers or suspensions; and access to telehealth services on an ongoing basis so members can continue to look after their health from the comfort of home.
Together with nib foundation, we also provided $1.5 million in funding to community and clinical initiatives dedicated to supporting the mental health and wellbeing of Australians and Kiwis.
In addition, nib Group employees were given up to two weeks special paid leave, an ergonomics package to support their work from home set up as well as access to a number of health and wellbeing initiatives to help keep them connected and healthy while working from home.
Learn more at nib.com.au/covid19
sustainability at nib
We recognise that how we go about our business, including the examples we set, directly and indirectly impact the communities in which we operate and their sustainability.
FY21 highlights include:
- Transitioning to renewable energy at all nib-controlled locations and commitment to be carbon neutral by the end of FY22.
- Supporting Ngāti Whātua Ōrākei iwi members through health management programs and introduction of Kaiārahi (iwi health navigators).
- Introducing our first-ever Diversity and Inclusion Action Plan to foster a sense of community where everyone is welcome, contributes and belongs.
- Development of nib’s Responsible Investment Policy which has enhanced our SRI screening of our investment portfolio.
- Launching our Reflect Reconciliation Action Plan (RAP).
- Rethinking how our people work through Life at nib – our new distributed work policy which focuses on hybrid working.
- Publishing our inaugural Modern Slavery Statement and undertaking supplier questionnaire assessments using a risk-based approach.
- Over $2.7 million in total community funding including $1.1 million nib foundation investment towards chronic disease prevention.
- Kicking off our Payer to Partner (P2P) journey as we seek to become a true health partner for our members.
Learn more in our 2021 Sustainability Report available at nib.com.au/sustainability
nib in the community
Employee giving
Our new Group-wide online employee giving platform introduced this year will enhance our ongoing efforts to foster a spirit of giving back to the communities in which we live, work, and operate. Although COVID-19 restricted some activities, our employees raised more than $41,000 in donations to support 13 charities and provided $37,000 worth of volunteering time to our community partners.
Promoting prevention
With over $23 million funded to date by our charitable arm, nib foundation continues its long-term focus on supporting innovative community programs designed to address our chronic disease epidemic. Almost $1.1 million has been invested in prevention programs in FY21, helping over 600,000 people access programs designed to build health literacy and empower healthier lifestyle choices such as improving diet and exercise, or reducing smoking and risky drinking. Reducing these health risks plays a big role in protecting our health and wellbeing into the future.
Enabling equality
Working alongside our Reflect RAP, nib foundation’s Aboriginal Health Partnerships program continues to support community-led organisations to deliver culturally safe initiatives to help improve Aboriginal and Torres Strait Islander health. The program has supported four partnerships this financial year working to support youth emotional and social wellbeing through building strong connections to family, country, and culture.
Our partnership with Awabakal saw Ian Eggins and sons awarded a Community Sponsorships grant to help purchase wetsuits to support their success and participation in surfing competitions. With grants of up to $1,000 on offer, this program is supporting greater participation of Aboriginal and Torres Strait Islander peoples in sporting, educational, cultural and leadership events, while celebrating local good news stories and achievements.
Learn more in our 2021 Community Report available from nib.com.au/foundation/community-report.