👉 Background: Medibank Private is one of the largest Australian private health insurance providers in Australia. We’re talking a total of 3.7 million customers in 2021, across its Medibank Private and ahm brands.

👉 What happened: Last year was one hell of a nightmare for Medibank when a cyberattack exposed the details current and former customers. As a result, Medibank made a net loss of 13,000 customers in December alone as customers deserted the big M.

👉 What else: But for the first 18 days of January, Medibank was back in the black for customers. Okay, we’re only talking a measly net gain of 200 policy holders. But it’s keen to get back to business as usual.. And recover its reputation.. which was in tatters.

What's the key learning?

💡 When a business suffers a major blow to its reputation, it can feel like the end. But for some companies, it's just the beginning of a journey to redemption.

💡 The steps that a company takes post-crisis are critical to determine whether they will flourish.. Or flounder.

• Example 1: HIH Insurance was one of the largest insurance companies in Australia but collapsed in 2001. After fraudulent accounting and mismanagement, it tried to restructure again and again - but the damage was done.
  
• Example 2: Johnson and Johnson recalled 31 million bottles of pain reliever Tylenol which had killed seven people. It has managed to bounce back and grow into a business with over $94 billion USD in revenue.

💡 So now, Medibank has the opportunity to own its mistakes and continue building a bigger and better business.

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