Background: We know private health insurance isn't free. Customers pay a 'premium' (aka just a fancy word for the money they pay for their policy). And every year on April 1, these insurance premiums increase.

What happened: In 2016, health insurance premiums increased by 5.59%. But in 2022? They're only increasing by 2.7% - the slowest premium rise in 20 years.

What else: But it ain't 'cos they've caught the Christmas spirit...it's all because of insurance payouts, which were incredibly low last year - TY COVID.

So what's the key learning?

💡When risky behaviour goes up...insurer's performance goes down. And when risky behaviour goes down...insurers are laughing. COVID was tough for Aussies, but for private health insurers it was a different story.

💡There were lockdowns, restrictions to elective surgery, limits on in-person consultations with medical professionals...which meant health funds didn't really need to make that many payments to their customers.

💡In fact, the ACCC told health funds they better watch out (look twice, etc) and calculate the true value of profits from COVID shutdowns...and then pass those profits back to members. And that's just what some of them are doing by keeping premiums low.