Why customers hate leaving Medibank
Independent Financial Research
Why customers hate leaving Medibank. Soon to list Medibank Private is the undisputed king of Australian private health insurers (PHI). Medibank's 3.8m members give it a market share of 30% - more than HCF, NIB, and HBF combined. Most people find the health insurance comparison process extremely difficult. This makes insurance policies some of the stickiest purchases consumers will make (so, if you're shopping around, it's a good idea to first visit the comparison website (VIEW LINK). Only around 5% of policyholders switch in any given year - roughly half the switching rate for other financial products such as life insurance and bank accounts. The high customer captivity makes it easier for Medibank to upgrade members to more profitable products as they age and need more services to be covered. It also provides a strong base and stable revenue, which justifies Medibank's investment in new products such as life, travel and pet insurance. (VIEW LINK)
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