Southern Cross is working through options for how to recognise the loyalty of its long-standing members and has asked members to contribute to the discussion.
The society, which covers mainly medical insurance, is asking whether long-term members should be recognised in some way for their loyalty. If so, would other members be happy to pay more to fund this?
Southern Cross has been criticised recently for its policy of lifting premium rates for older members, despite them contributing to their health insurance for many years.
Older members use the claim system more extensively than younger members but the debate has been around whether older, long-term members were being unfairly penalised.
Southern Cross chief executive Peter Tynan said it was time to take a fresh look at the issue.
"We are not for profit, so premiums reflect the claims costs of our members, which are driven by the cost of health-care services, and members accessing those services in increasing numbers."
If the length of membership was to be recognised in some way, the society would need to look closely at how it would be funded, and what implications there were for all members and for the society's long-term sustainability in such a competitive industry, he said.
Already, online comments have suggested that younger members pay higher premiums to subsidise older, longer-term members, something bound not to be favoured by younger people who wee not in work-subsidised schemes.
But not all long-term members of Southern Cross are elderly.
Data provided by Southern Cross showed that 31% of members (257,000 individuals) started their policy at least 20 years ago and 11% (91,000) had been with the society for more than 30 years.
Of the 257,000, 109,000 were aged 20 to 54 years, 70,000 were aged 55 to 64 and 78,000 were aged 65 and above.
Mr Tynan asked whether, if a means of recognising length of membership was found, any of those age groups should be treated differently.
The discussion document is on www.southerncross.co.nz/boardnews.
