The Department of Health has announced Finity will deliver a landmark independent actuarial study into private health insurance
The study will focus on Lifetime Health Cover and risk equalisation. Starting immediately, the initiative is designed to improve the affordability, value and effectiveness of private health insurance for consumers.
Finity’s private health insurance actuarial team is the largest in Australia and worked with more than 30 private health insurers last year.
The study will include assessment of international trends and best practice, modelling to test the effectiveness of proposed changes and workshops to enable involvement of stakeholders.
Practice leader, Nicholas Stolk said that Finity is looking forward to the engagement with the Department of Health, and is well placed to deliver such a project due to the firm’s ongoing engagement with health insurers and unique understanding of what drives consumer demands for health insurance.
“The Finity team is regularly called on by government to advise on major public policy issues where both strong actuarial modelling and industry insight are required,” he said.
“The goal of the project is to estimate the consequences for PHI participation, average premiums and claim costs. Identify stakeholder impacts, and propose options to reduce adverse effects such as a staged transition.
“We consider this to be the most important actuarial assignment in PHI for many years. We are excited by the opportunity to work with the Department to improve the value proposition of PHI for all Australians,“ he added.
Read more about our PHI team here.