nib Health Funds

nib Health Funds Limited

Type	Public
Traded as	ASX: NHF
Industry	Insurance
Founded	1952
Founder	BHP Steelworks workers
Headquarters	Newcastle, NSW, Australia
Key people	Steve Crane (Chairman), Mark Fitzgibbon (CEO and Managing Director)
Products	Health Insurance, Travel insurance, Life Insurance
Revenue	$1.5 Billion
Profit	$72.3 Million
Number of employees	More than 800
Website	www.nib.com.au

nib health funds (nib, formerly Newcastle Industrial Benefits) is an Australian financier and facilitator of health care in Australia. It was established in the NSW Hunter Region in 1952 to provide health insurance for workers at the BHP Steelworks, and has since grown into a national and international operation,^[1] providing health and medical insurance to more than one million Australian and New Zealand residents.

History

Privatisation

In 2007, nib became the first private health insurance fund to list on the Australian Securities Exchange (ASX).^[2]

A series of meetings of eligible policyholders and company members held in Newcastle on 19 July 2007 voted overwhelmingly in favour of demutualisation of the health fund.^[3] The Federal Court of Australia then approved the vote the following week with the demutualisation completed on 5 November 2007.

The share price opened at $AUD0.85.

Diversification and Expansion

In 2010, nib set about expanding the business globally, entering into the international workers and international students market.^[4][5]

To support this expansion, nib purchased IMAN International Pty Ltd, a specialist provider of health cover for temporary migrant workers in Australia for approximately $25 million.^[6]

In July 2016, nib announced the acquisition of World Nomads, Australia's third-largest distributor of travel insurance, for $95 million as it diversifies away from the heavily regulated health insurance market.^[7]

nib New Zealand

In November 2012, nib acquired the New Zealand health insurer, TOWER Medical Insurance Limited (TOWER Medical), for approximately NZ$102 million (A$80 million).^[8] nib New Zealand is the country’s second largest health insurer, providing health and medical insurance to around 160,000 New Zealanders.^[9]

Whitecoat

Whitecoat^[10] is a free online search and comparison service that was developed and launched by nib in 2013.

Whitecoat provides contact details and ratings information for more than 210,000 Australian healthcare providers across 25 different provider types, including dentists, optometrists, and physiotherapists. Along with providing publicly-available contact details for different healthcare providers, the Whitecoat website carries ratings information regarding availability, listening skills, explanation of treatment and likelihood to recommend as well as comments from customers about their overall service experience.

In 2014, Whitecoat allowed reviews from the public for the first time. Reviews are now sourced from Whitecoat users as well as members of affiliated private health insurers who have been provided with a billable service from the provider. It hosts more than 250,000 customer reviews and while the platform now includes allied healthcare providers such as dentists, physiotherapists, and general practitioners, it is looking to expand to include medical specialists. The site has been likened to being the 'Trip Advisor' of the healthcare sector.^[11]

nib Options

In March 2014 nib launched nib Options, a fee-for-service product aimed to provide safe and reliable choices for consumers wishing to undertake cosmetic and major dental procedures in Australia or overseas.^[12]

It is a bundled, one-stop service from the initial medical consultation assessment, actual surgery and post-surgery care, as well as travel arrangements, accommodation, concierge services for consumers who go overseas. Customers have a choice during the early assessment stage about where they would like to seek treatment, with nib Options accessing leading Australian plastic surgeons as well as fully qualified and credentialed plastic surgeons and dentists in overseas facilities.

nib global health

In September 2014 nib partnered with leading global medical insurer AXA PPP International in launching a global health cover pilot product in New Zealand. nib global health provides comprehensive health and medical insurance cover to New Zealanders in most countries around the world.^[13]

Under the strategic alliance, nib underwrites the cover with AXA to service the product, including providing 24-hour customer assistance, claims management and access to their worldwide provider network.

nib foundation

nib established the nib foundation in 2008,^[14] following a $25 million donation from nib health funds, raised through the issue of new shares at the time of listing nib on the Australian Securities Exchange (ASX) in November 2007. Each year, the foundation aims to provide up to $2 million in funding to support a range of Multi-Year Partners and Community Partners. Since inception, more than $12 million in grant funding has been provided to aid the development and delivery of health and wellbeing initiatives. The foundation is partnered with 60 Australian charities at a local and national level.

Reputation

nib is ranked sixth of ten health insurance companies by social media service quality ranking website ServiceRage with 19% of all comments being positive.^[15]

Sponsorship and ambassadors

nib sponsors a number of major sporting organisations in Australia and New Zealand, including the Newcastle Knights (NRL),^[16] NSW State of Origin team (NRL) and the Auckland Blues (Super Rugby).^[17]

nib is also the naming rights partner of Perth’s premier rectangular venue, nib Stadium, which is home to Western Force (Super Rugby), Perth Glory (A-League), WA Reds Rugby League and the South Sydney Rabbitohs (when playing in Perth).^[18]

Retired rugby league player, Paul Harragon, has been the face of nib in Australia since 1991.

References

External links

• Official website