NIB Holdings, the country's only listed health fund, hopes to significantly increase its number of policy holders by forming a strategic alliance with National Australia Bank by offering the bank's 3 million customers discounted private health insurance.
NIB, the fifth biggest health fund with a 7 per cent share of the $10 billion private health fund market, beat larger rivals to win NAB's business.
NIB hopes to grow its 375,000 members by at least 5000 over the initial 15-month campaign. The NAB alliance marks a strategic move by NIB to enter the financial services sector.
While NAB has selected NIB as partner for its customers, the country's biggest health fund, the government-owned Medibank Private, has a corporate alliance with the bank to offer its 24,500 employees with private health insurance -- also at a discount.
BUPA Australia, the second biggest health fund, has an alliance with ANZ and St George.
Under the NIB alliance, NAB's more than 1.8 million credit card holders will get a discount if they sign up for NIB's private health insurance and pay with their NAB credit card.
NIB managing director Mark Fitzgibbon said: "This is another sign of private health players moving out of the outdated mutual path to offer a seamless, one-stop shopping.
"It also marks the start of private health funds becoming part of the mainstream financial products sector by buying from one provider."
NIB's current guidance for fiscal 2009 is for 4 per cent policy holder growth and net underwriting margin growth of about 4 per cent which "reflects the forecast acquisition of customers through the NAB partnership".
NIB shares rose more than 7 per cent or 6c to close at 87c yesterday.
