NIB announces coronavirus assistance measures

NIB has become the first major listed insurer to announce a coronavirus response for health fund members.

Nib managing director Mark Fitzgibbon. Picture: Hollie Adams

NIB will offer its health insurance members a specialised coronavirus support package as more Australians face ongoing uncertainty induced by the pandemic.

The health insurer said it would increase hospital cover for more than 560,000 members for the next three months, noting government-forced cancellations of elective surgery, in combination with the growing threat of unemployment was pushing people into further financial hardship.

NIB managing director Mark Fitzgibbon said the health insurance industry would play a critical during the COVID-19 crisis.

“Many of our members confront profound uncertainty and the threat or reality of unemployment,” Mr Fitzgibbon said. “Beyond supporting our members we’re totally committed to having a role in ameliorating COVID-19 and are open minded to new initiatives and investments that could assist in containment and public health.”

Insurers have received some criticism for making slow responses to the coronavirus crisis. HBF said on Thursday it would slash its expected April 1 price hike, becoming the first fund to suspend the anticipated price rises due next week. HBF was due to enact a 1.98 per cent price increase to its members’ policies.

As part of its support package, more than 300,000 policyholders would have expanded hospital cover at no additional cost until June 30, NIB announced.

The expanded coverage will include coverage for chest, lung, kidney and bladder, or treatment related to the COVID-19 illness.

Members experiencing financial hardship would be able to access special premium relief, including the ability to suspend policy payments for up to six months while remaining covered for coronavirus-related treatment.

“The crisis has actually presented health insurers and the total private health system with a unique challenge to demonstrate how we can play an enhanced role in our total healthcare system,” Mr Fitzgibbon said.

NIB group employees would also be offered two weeks’ paid discretionary leave if they were impacted or affected by the virus.

But the support package was subject to review due to the uncertainty about how long the virus would persist, NIB said.

Investment fund researchers at Citi noted nib’s health insurance division was expected to benefit from the suspension of elective procedures. But they noted the company was likely to spend some of its claim savings on assisting customers affected by the pandemic.

The brokerage also noted nib’s travel insurance arm was likely to sustain significant losses due to the shutdown of global travel.