ahm by Medibank and Bupa sign on
Leading comparison service, comparethemarket.com.au, has introduced the industry’s first public, standardised pricing model for health insurance comparison services in order to promote complete transparency and to demonstrate its commitment to comparisons based solely on the needs of consumers.
The launch of comparethemarket.com.au’s new rate card, which will see all health funds pay the same fee for the service they receive, sets a new standard for disclosure in Australia’s comparison service industry. It is also the first part of a larger initiative – the Comparethemarket.com.au Code of Ethical Practice (CoEP) – which will launch this year.
The CoEP, which is a series of initiatives underpinned by four pillars of transparency, fairness, accuracy and a culture of compliance, will build significantly on the ACCC’s comparator guidelines released in 2015.
Matt McCann, CEO of comparethemarket.com.au, said: “Our standard rate is the first part of our Code of Ethical Practice and removes any perceived risk of us favouring one insurer over another based on hidden fees.”
CTM’s fee equates to 27.75% of the first year’s premium.
“The industry has been calling for transparent pricing for some time, and as a result of direct feedback from our partners, we have introduced our standardised rate and will be disclosing it to consumers.
“Further, given efficiency gains currently being sought across the sector to address private health insurance affordability issues, comparethemarket.com.au has set its standard rate at a level that is sustainable for both insurers and comparators.
“There has been a real seachange in the role of comparison services within the industry. We no longer view ourselves as disruptors, rather we are a mature part of the industry and provide a valuable service for insurers and consumers alike, therefore it is our responsibility to respond to changes impacting our consumers and partners,” said Matt.
Comparethemarkets.com.au’s new standard health rate was set after examining the opaque nature of variable pricing across the industry. It has been designed so that comparethemarket.com.au shares the risk of customer ‘churn’ and will refund commissions paid by insurers if a new member cancels their policy early.
The standard health rate card is a key element of comparethemarket.com.au’s ongoing growth strategy. “There is a competitive advantage to acting in a trustworthy way. Building confidence in the independence of comparison services will result in benefits for all – consumers will get a better deal on their insurance needs, providers will get access to bigger markets and we’ll see more people trust and use our service,” said Matt.
Australia’s two largest health funds have committed to comparethemarket.com.au’s standard health rate card – ahm by Medibank and Bupa. Comparethemarket.com.au anticipates that it will announce additional participants to the standardised pricing model over the coming weeks.
Comparethemarket.com.au invites all health insurance providers to participate on its health insurance comparison panel under its new standardised rate.
Comparethemarket.com.au is a comparison service making it easier and quicker for Australians to compare and buy products and services they rely on in their everyday lives. Whether you’re looking for a good deal on your car insurance, private health insurance, or home and contents insurance; or the lowest fuel prices in your area, or an energy provider that suits your needs, then go to comparethemarket.com.au. It’s a completely free service and enables Australians to make purchasing decisions with greater knowledge, confidence and savings.