Australia’s health insurers have had a very good year. Their financial strength has increased considerably thanks to a surge of member numbers and good control of benefit payments.

In its latest assessment of the health insurance industry, ratings agency Standard & Poor’s said health insurers earned $343 million – an increase of 172% – in 1999/2000.

“Having experienced a number of years of improved profitability, industry participants have used the opportunity to restore financial strength, rebuilding reserves to more robust levels,” S & P’s said.

Despite this, some funds still experienced a moderate lessening of financial strength. But the short-term outlook remains positive, although it will ease beyond the current financial year as new members’ waiting periods expire.