Southern Cross Health gained 15,000 new customers last year. File photo. Photo: RNZ / Dan Cook
A surge in New Zealanders signing up for health insurance is largely because they have less faith they will be able to get access to the healthcare they need, says the head of the country's biggest insurer.
Despite a cost of living crisis, Southern Cross Health gained 15,000 new customers last year, bringing its membership to more than 955,000 people.
The cost of claims has also increased by 15 percent, paying out an average of $6 million per business day, while 50 percent of its members made a health claim last year, compared to 33 percent in 2019.
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New Zealand's health system is currently dealing with doctor shortages, controversies over drug funding, concerns over the cost of the Dunedin Hospital rebuild and blow-outs in wait times for cancer treatment, specialist appointments and elective surgeries.
But Southern Cross Health Society chief executive Nick Astwick told Checkpoint the number of people signing up for health insurance had been increasing for some time, with eight years of membership growth.
He said there were a number of causes for the rise in membership.
"Post-Covid, we went through a health crisis and I think we've seen a big noticeable shift in people prioritising their health."
He said the public system was also challenged at the moment
"Not so much when you're in the system, but getting into it. That concern for access is driving more people into the private system."
Southern Cross sees increase in customers despite cost of living
Astwick said about half of Southern Cross memberships were paid by New Zealand businesses, with 200 new businesses signing up last year, and another 300 the year before that.
"So in terms of the tight labour market and a really valuable employee benefit, that is also driving growth. They're investing in their employee's health insurance for them."
Southern Cross has seen big rises in the number of surgical procedures, specialist consultations and GP, with the volume of cancer care up by about 5-10 percent. Astwick said 93 percent of the money coming in to the insurer went to pay peoples' claims.
He told Checkpoint he felt New Zealanders were going to be more self-paying for health in the long term and it would be part of the solution to the "massive demand" for health as the country's demographics get older.
"There is going to be a combination of a private and public system that is going to have to solve that, and there are a lot of conversations about that at the moment."