He says the insurer is backing up healthy lifestyle messages with financial incentives.
Dr McPherson says the low claim reward initiative will reduce premiums for around 70% of the society’s adult members on individual or voluntary group scheme policies. “We expect that will translate into savings for Southern Cross members totaling around $30 million.”
“The traditional role of health insurance has been to provide access to healthcare when people are sick. We want to expand and supplement that role by actively encouraging good health.”
The low claim reward follows other Southern Cross initiatives aimed at encouraging good health. In December 2003 it introduced a Healthy Lifestyle Reward with its Wellbeing insurance plan, which discounted premiums for new members based on a simple questionnaire addressing smoking, drinking, exercise and healthy eating.
“The low claim reward is the next progression, based on the assumption that healthy lifestyle choices translate into fewer claims. We will recognise and reward lower claiming through cheaper insurance premiums.” McPherson says the low claim reward scheme is an innovative adaptation of the no claim discounts offered by many vehicle insurers.
“A no claim discount on vehicle insurance discourages people from claiming for small dings and dents. That approach would be completely at odds with our philosophy of enabling better access to health care.
“We are adapting the concept into a low claim scheme that provides simple and direct financial rewards for healthy people, without creating a financial obstacle for members who need treatment. We are in the business of helping people.
McPherson says the low claim threshold will vary depending on a member’s plan type.
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