Suncorp has begun offering a wider range of health covers under an expanded alliance with Nib, which will underwrite, handle claims and provide administrative support.

The tailored offerings comprise five hospital products and four extras, a Suncorp spokesman told insuranceNEWS.com.au.

Suncorp subsidiary AAMI will follow suit early next year, making its own foray into the private health insurance market.

Suncorp and health insurer Nib signed a distribution alliance in 2014 that helped Suncorp-owned Apia enter the health insurance market.

“A new health insurance offering across our brands reflects our commitment to delivering greater value for our customers, giving them easy access to our services and solutions through the Suncorp marketplace,” CEO and MD Michael Cameron said.

“The extension of our relationship with Nib gives our customers the flexibility to select a health insurance product tailored to suit their lifestyle and budget.”

About 47% of Australians have private health cover and the industry is estimated to generate $24 billion in revenue this financial year, according to analyst Ibisworld.