GMHBA AnnuAL RepoRt 2010 - GMHBA Health Insurance

FinAnCiALLy stRonG
to proviDe SuStainaBle premiumS to our memBerS
As a not-for-profit organisation, we seek to keep our
expenses low, and maintain margins which are just
enough to ensure our long term success. This is
good for our members, because it ultimately means
lower prices.
During this past financial year the organisation has
invested heavily in our future. We have committed
funds to – Frank Health Insurance, business
development, and exploring other opportunities aimed
at providing profitable growth for years to come.
New member growth means that GMHBA can keep
premiums as low as possible for all of our members,
new and old.
sales growth
GMHBA remains one of the fastest growing health
funds in Australia. During the past financial year the
fund grew in memberships by 6.2%, compared to
total industry growth of 3%.
Aided by strong customer retention, advocacy and
distribution relationships, GMHBA has been able to
make these gains without being dependent upon
multimillion dollar advertising campaigns.
During the past year, we also developed an
enhanced understanding of our customer and
product profitability. This helps us to match the
‘right’ customers with the ‘right’ products, and refine
our product portfolio.
investment strategy & cash management
Due to the uncertainty in the business environment
globally, GMHBA adopted a conservative investment
strategy - which was reviewed quarterly – where we
decided not to participate in equity markets.
From a cash management perspective, we have a
“portfolio” of term deposits, with staggered maturity
dates, at entities rated A- or higher.
Claims audit & analysis
Expert people and strong systems identified errors
in claims made by members, hospitals and ancillary
providers. The outcome was savings of more than
$1m. In turn, these savings have a direct impact on
GMHBA’s ability to keep premiums down.
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