Bupa health cover premiums growing faster than market leader Medibank Private

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Health insurer Bupa will use its lower-than industry-average premium rises to try to win more market share as customers looking for cheaper deals disrupt the $14 billion sector.

Australia’s second-largest health fund was able to deliver a strong financial performance in the 12 months to the end of December 2014, in part by keeping health cover affordable, Bupa Health Services managing director Hisham El Ansary said.

Revenue from premiums rose 8.4 per cent to $5.3 billion, financial accounts to be lodged with the corporate regulator showed.

The company recently received government approval to increase its premiums by an average of 5.59 per cent from April 1, was lower than the industry average of 6.18 per cent. Medibank Private, which the government sold last November in a $5.7 billion float, received approval to increase its premiums by an average of 6.59 per cent.