Private Health Insurer MBF says it wants to play a bigger role in the Western Australian health insurance market after opening its first retail outlet in the state.
The 55 St Georges Terrace office represents the first new shop-front entrant to WA’s HBF dominated private health insurance market since SGIO Health in the late 1990s, which ironically is now part of the Sydney-based MBF group.
MBF national public affairs manager David Jones said the company is pursuing a strategy of growth and diversification, which has seen it move into financial services and also lifestyle management.
But it is health insurance that is the company’s core business.
MBF has been offering private health insurance cover for more than 50 years, has a dominant market position in New South Wales and a strong presence in Queensland and Tasmania. On a national level it is second only to Medibank Private for market penetration.
It has about 20 per cent of the nation’s private health insurance market.
Medibank Private has about 29 per cent of the market.
But the WA market will be a tough nut to crack.
HBF has about 70 per cent of the state’s privately insured market and has one of the most recognisable brands in WA.
The balance of the market is shared mainly between Medibank Private and HIF, leaving little space for new players.
This is a point not lost on MBF, as part of what it describes as a very clear plan to be in WA long-term.
“We recognise the strong loyalty to HBF and our strategy will be to attract new members, not take members from other funds and we see the corporate market as the best way of doing this,” Mr Jones said.
“We have been active in WA for a number of years through health plans that we manage for corporate clients.
Part of our strategy is to be a truly national organisation and by opening our office in Perth we will raise the profile of MBF and also have a point of reference for members of our corporate plans.”
