HCF readies for ad agency review as Clems senior staff exodus continues

Health insurance company HCF has severed ties with ad agency Clemenger BBDO following an agency merger and an exodus of senior leadership staff.

HCF has parted company with its advertising agency Clemenger BBDO which created the We Put Our Money Where Our Members Are campaign (above) to showcase its member benefits.

Health insurance company HCF is preparing to launch a review of creative advertising agencies after parting company with its agency Clemenger BBDO.

HCF head of marketing for member growth Kit Bashford said, “HCF is parting ways with Clemenger BBDO at the end of the current campaign. We greatly appreciate the partnership and all the outstanding work we’ve done together. We will soon begin the process of identifying a new agency partner.”

HCF had worked with Clemenger BBDO since 2021 and The Australian understands it will sever ties at the end of April.

The decision to part ways is the result of the recent merger of Clemenger BBDO with its sister agencies CHEP Network and Traffik, which has seen the two latter agency brands cease operations.

The move is due to a clash with rival Bupa, which is a client of CHEP and will now be managed by Clemenger BBDO.

HCF is the only client to depart since the agency merger, which became official at the start of April with CHEP chief executive officer Lee Leggett taking the reins as the CEO of Clemenger BBDO.

Ms Leggett said, “As Clemenger BDDO enters a new chapter, we will be parting ways with HCF. This decision is not a reflection on the strength of the relationship or the work. We part with mutual respect and genuine appreciation for the journey we’ve shared. We’re proud of what we’ve achieved with HCF and look forward to what’s ahead for both teams.”

Earlier this month, retailer Kmart appointed its creative advertising account to Clemenger BBDO following a drawn out process, which saw agencies pitch for the business in December.

The agency merger has triggered an exodus of senior leadership with the departures of Clemenger BBDO CEO Dani Bassil, chief growth officer Anita Zanesco and chief creative officer Adrian Flores, as well as CHEP chief strategic officer Lillian Sor and CHEP chief creative officer Gavin McCloud.

The Australian can also reveal that CHEP managing director Jonny Berger, Clemenger BBDO managing director Julian Bell, Clemenger BBDO chief media officer Anna Cherry and Clemenger BBDO national head of integrated production Tash Johnson will also depart from the business.

The agency merger is part of a strategy by Clemenger BBDO’s holding company Omnicom, which aims to streamline its creative agencies under the Omnicom Advertising Group (OAG) structure.

OAG stablemate DDB has also recently revealed a new leadership structure across Australia and New Zealand with DDB Group AUNZ president Andrew Little departing the business after 25 years. The move has seen DDB New Zealand CEO Priya Patel promoted to regional CEO and DDB New Zealand chief creative officer Matty Burton promoted to regional CCO.

OAG global chief executive Troy Ruhanen told The Australian in October that the local OAG structures would roll out in early 2025. However, the market is yet to see the appointment of any Omnicom Advertising Group roles, despite persistent rumours and industry speculation about the candidates that are believed to be in the frame for any roles.

HCF is currently the third largest private health insurance companies in Australia with 12.5 per cent share, behind

Bupa which has 24.9 per cent and market leader Medibank which boasts 27.1 per cent share, according to figures from the Australian Prudential Regulation Authority (APRA) from June 2023.

Clemenger BBDO created the We Put Our Money Where Our Members Are brand platform for HCF, (pictured above) which launched in March 2024 and delivered a 31 per cent increase in brand salience in the first six months.