Advisers' role to grow: Tynan

The society has reported a year-end deficit of $1.1 million, which he said was due to higher-than-expected-claims, predominantly driven by orthopaedic procedures and specialist consultations.

For every $1 of premium, the society returned 90.4 cents in claims. Southern Cross said the rest of the health insurance industry returned an average of only 67.5 cents.

Over the financial year, it earned $738.4 million in premiums, up 5.9% on 2013, and incurred $694.5 million in claims, up 8.7%.

Tynan said the deficit was small and could be absorbed. But he said rising claim costs were a concern. “Our focus is on managing the cost of these claims on behalf of our members, particularly health service cost increases that are unjustifiable or out of line with market rates.”