While Medibank's data breach has been devastating for its own customers, it's been a blessing in disguise for NIB.
👉 Background: NIB Holdings is an Australian health insurance fund that was established back in 1952. It actually started as a health insurer just for BHP workers.
👉 What happened: Now, NIB is the 4th largest health insurer in Australia, behind market-leader Medibank. And while Medibank's data breach has been devastating for its own customers, it's been a blessing in disguise for NIB.
👉 What else: NIB has seen a 4.7% increase in new policy holders in the past quarter. And even better, a 16.4% boost in underlying profit thanks to Medibank customers making the switch. And no surprises, but data security was the biggest concern at NIB's Annual General Meeting.
💡It’s not “if” another data breach will happen, but “when” it will happen, to “who”, and “what” will be stolen.
💡Recently, we’ve seen Optus, Medibank, MyDeal and Vinomofo have its data breached. And with the frequency of cyberattacks expected to double in the next five years, companies big and small are stepping up their investment in cybersecurity.
💡Not only does it impact the lives of their customers, but these data breaches have a material impact on the company’s share price (and investors). Since the Medibank breach, its share price has dropped 24%.
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