Australia’s health insurance sector has seen a notable increase in policy sales, with comparison websites now playing a larger role in how consumers choose their cover.
According to the Private Health Insurance Intermediaries Association (PHIIA), nearly one in three health insurance policies in 2024-25 were sold through its member platforms, which include Compare Club, Compare the Market, iSelect, and The ItsMy Group.
The latest State of the Sector Survey from PHIIA reported 268,364 policy sales for the year, a 23.8% rise from the previous period and a jump to 28.6% of all referred policy sales nationwide.
The data suggests that more Australians are turning to online comparison tools rather than traditional brokers when purchasing health insurance.
Higher conversion rates and engagement across different age groups contributed to this growth, with digital intermediaries increasingly influencing both new sign-ups and policy switches.
The survey found that silver-tier hospital policies remained the most frequently selected, accounting for 118,221 sales. Bronze-tier policies also grew in popularity, reaching 88,553 sales.
In contrast, gold-tier policies saw a significant decline, dropping by 31% to just 4,854 sales – the lowest figure in seven years.
Despite this, younger adults aged 20 to 39 made up the majority of gold policy purchases, reflecting ongoing demand for benefits such as maternity and psychiatric care.
“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.
Recent analysis from Canstar showed that gold-tier private hospital insurance premiums rose sharply, with an average increase of 13.8% or $442 per year – well above the government’s average of 3.73%. Family gold-tier policies also saw significant hikes, with average premiums reaching $7,207 in June, up $858 from March.
In contrast, bronze and silver policies experienced more moderate increases, between 1.5% and 5.2%, while basic-tier cover saw a slight decrease.
Canstar’s data indicated that policyholders willing to switch insurers could save up to $1,296 annually on gold policies and up to $2,493 for families, provided they chose lower-priced options with similar coverage.
PHIIA’s report highlighted that three-quarters of intermediary sales came from customers switching providers, while 48,000 new entrants joined the market through these platforms.
This demonstrates the expanding influence of comparison sites in attracting first-time policyholders and helping existing customers reassess their options.
The shift toward digital channels suggests that brokers are facing increasing competition as consumers prioritise convenience and transparency.
The average gross annual premium for combined policies increased by 1% to $4,309, remaining below the industry-wide average premium rise of 3.73% for 2025.
“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.
With comparison platforms now central to the health insurance buying process, brokers may need to rethink their approach to remain relevant.
The PHIIA’s findings indicate that digital intermediaries are not only facilitating policy changes but are also key to bringing new customers into the private health insurance market.
As consumers increasingly value ease of access and price transparency, the trend toward comparison site usage is expected to persist.
