Version 3 media release- Embargo 0430 Oct 1 2025
Health insurance survey reveals record sales from comparison services
PHIIA members contribute to almost a third of all health insurance policy sales and a growing proportion of new entrants to the market, according to a new survey.
Their annual state of the sector report recorded 268,364 sales in 2024-25, representing a 23.8% increase from the previous year. The jump accounted for 28.6% of referred policy sales nationally, up from 23.6% in FY24.
Higher sales conversion rates and stronger engagement across all age cohorts underpinned this growth.
FY 2024-25 data were pooled by hospital tier, customer type, and age from PHIIA members, including Compare Club, Compare the Market, iSelect, and The ItsMy Group.
Within hospital tiers, silver remained the most common option with 118,221 sales, while bronze increased to 88,553.
Gold policies continued their decline, down 31.0% to 4,854, the lowest level in seven years. The 20-39 age group again accounted for the most sales (63% of total) in the Gold tier.
“There is no shortage of demand for maternity and in-hospital psychiatrics amongst younger cohorts, but with the limited supply of products, it highlights the need for a structural review of how these services are made available, equitably and cost-effectively for all stakeholders, ” said PHIIA chair Gerald Brown.
While switchers accounted for three-quarters of intermediary sales, PHIIA members also introduced a significant 48,000 new entrants, highlighting the vital role of intermediaries in both
attracting first-time customers and ensuring existing policyholders continue to find value and remain covered.
The average gross annual premium (GAP) for combined policies rose modestly, increasing by 1.0% to $4,309, which is well below the average premium increase in 2025 of 3.73%.
“The lower GAPs on combined policies suggest PHIIA members play a critical role in helping consumers identify cost-saving opportunities and find value in their cover,” said PHIIA CEO Christopher Zinn.
The age distribution of sales remained broadly stable, with only minor shifts across age groups. Australians aged 55 and over accounted for 43% of sales, up from 42.3% in the 2023–24 period, while the share of individuals under 55 eased slightly to 57.0%.
PHIIA is the peak industry body representing and monitoring standards for comparison services, independent intermediaries, agents and brokers advising and selling private health insurance in Australia. The State of the Sector Survey began in 2017.
Media inquiries: Christopher Zinn PHIIA CEO
