Health insurer to close 5 branches, cites customer shift to digital platforms
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In a move that reflects the changing landscape of customer service, HBF—one of Western Australia's leading health insurers—has announced the permanent closure of five branches.
This decision, which includes the closure of branches in both regional and metropolitan areas, is a significant shift for the insurer and its members.
The company stated that the closure will affect branches in Albany, Kalgoorlie, Floreat, Rockingham, and Mandurah in the coming months. This follows the recent closure of branches in Success and the Perth CBD.
The closures were said to be driven by a shift in customer behaviour towards digital platforms.
HBF, Australia's fifth-largest health fund, has seen a significant decrease in in-store interactions over the past few years.
Data from the company revealed that in-store dealings have dropped from 9.3 per cent to a mere 5.3 per cent of total interactions with members.
In contrast, digital platforms now account for approximately 80 per cent of activity from its 1.1 million members, with call centres covering the remaining interactions.
Dr Lachlan Henderson, HBF's Chief Executive, explained the decision, stating, 'To continue providing value to our whole membership base, HBF must balance meeting the needs of our members with operating a sustainable business model.’
‘Given the changes in how we are interacting with our members, particularly the increasing proportion of digital interactions, we intend to close five of our branches in the coming months,' he continued.
The move is not only a response to changing customer behaviour but also a cost-cutting measure.
HBF has experienced two consecutive annual losses, including a $20m deficit in the 2022/23 financial year.
Despite this, the company has managed to grow its member base outside WA to 18.8 per cent.
The closure of these branches will undoubtedly impact HBF's employees. However, the company has stated that staff will be offered redeployment opportunities, including the possibility of remote working.
'These are very difficult decisions that we have not taken lightly, and I would like to acknowledge the impact this will have for some of our members and people,' Dr Henderson said.
The executive also reassured customers who have relied on these branches for their interactions with HBF.
‘We will be reaching out directly to our members who have recently used the affected branches on how we will assist them during this transition,’ he stated.
In HBF's 2023 annual report, Dr Henderson highlighted the company's focus for the year: 'Complete our technology transformation program, retain and ideally grow market share, and continue to refine the operating model in an increasingly digital world.’
This shift towards digitalisation offers several benefits for customers, including increased convenience and efficiency.
However, it also presents challenges, particularly for those who are less comfortable with technology or who prefer face-to-face interactions.
As the industry continues to evolve, companies like HBF will need to find ways to balance the needs of their customers with the realities of operating in a digital world.
This will likely involve improving online services, maintaining a physical presence in key locations, and providing support for customers transitioning to digital platforms.
Are you a member of HBF? How do you feel about the closure of these branches? Let us know in the comments below.
This decision, which includes the closure of branches in both regional and metropolitan areas, is a significant shift for the insurer and its members.
The company stated that the closure will affect branches in Albany, Kalgoorlie, Floreat, Rockingham, and Mandurah in the coming months. This follows the recent closure of branches in Success and the Perth CBD.
The closures were said to be driven by a shift in customer behaviour towards digital platforms.
HBF announced five branch closures. Image source: HBF/Facebook
HBF, Australia's fifth-largest health fund, has seen a significant decrease in in-store interactions over the past few years.
Data from the company revealed that in-store dealings have dropped from 9.3 per cent to a mere 5.3 per cent of total interactions with members.
In contrast, digital platforms now account for approximately 80 per cent of activity from its 1.1 million members, with call centres covering the remaining interactions.
Dr Lachlan Henderson, HBF's Chief Executive, explained the decision, stating, 'To continue providing value to our whole membership base, HBF must balance meeting the needs of our members with operating a sustainable business model.’
‘Given the changes in how we are interacting with our members, particularly the increasing proportion of digital interactions, we intend to close five of our branches in the coming months,' he continued.
The move is not only a response to changing customer behaviour but also a cost-cutting measure.
HBF has experienced two consecutive annual losses, including a $20m deficit in the 2022/23 financial year.
Despite this, the company has managed to grow its member base outside WA to 18.8 per cent.
The closure of these branches will undoubtedly impact HBF's employees. However, the company has stated that staff will be offered redeployment opportunities, including the possibility of remote working.
'These are very difficult decisions that we have not taken lightly, and I would like to acknowledge the impact this will have for some of our members and people,' Dr Henderson said.
The executive also reassured customers who have relied on these branches for their interactions with HBF.
‘We will be reaching out directly to our members who have recently used the affected branches on how we will assist them during this transition,’ he stated.
In HBF's 2023 annual report, Dr Henderson highlighted the company's focus for the year: 'Complete our technology transformation program, retain and ideally grow market share, and continue to refine the operating model in an increasingly digital world.’
This shift towards digitalisation offers several benefits for customers, including increased convenience and efficiency.
However, it also presents challenges, particularly for those who are less comfortable with technology or who prefer face-to-face interactions.
As the industry continues to evolve, companies like HBF will need to find ways to balance the needs of their customers with the realities of operating in a digital world.
This will likely involve improving online services, maintaining a physical presence in key locations, and providing support for customers transitioning to digital platforms.
Are you a member of HBF? How do you feel about the closure of these branches? Let us know in the comments below.
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