Medibank boss Craig Drummond has committed to halting the decline in the private health insurer's market share by overhauling its approach to customers.
Australia's biggest private health insurer is spending money on new products such as free dental check-ups, new health services, adding staff to its contact centre to reduce waiting times, and refurbishing 16 retail stores.
"We're very focused on reorientating the business back towards our customer, and we're very serious on that," said Mr Drummond, who took the reins in July and subsequently revamped the group's senior management team.
Medibank saw a 2.5 per cent decline in policyholders in the year ended June 30 2016, and that rate of decline has been "similar" for the first few months of current financial year, according to Mr Drummond.
The group's market share of the Australian private health insurance industry has fallen over the past five years to about 27.6 per cent from 30.6 per cent.
At the same time the company's profit margin has risen for the past four years as it raised prices.
Halting the decline in customers - an eight-year trend - would take two to three years, Mr Drummond said.
"There's a big agenda, there's a lot to be done but if you've got the right people, the right team, with the right focus, I'm optimistic that we can meet those objectives," he said.
Medibank expects the operational improvements to deliver around $40 million in annual benefits by 2020.
The company is bolstering its digital offering with a new app and member website as it beds down its new IT platform over the next six to nine months.
The new IT system replaced the group's 40 year old platform earlier this year, and led to problems with a delay in sending annual tax statements to customers.
Medibank will also focus on customers suffering chronic conditions such as diabetes or high blood pressure in a bid to improve their health and reduce claims.
About two per cent of Medibank's 3.8 million customers account for around a third of the group's claims, Mr Drummond said.
"What that reflects is the chronically ill folk in the community that are claiming benefits because they're frequently in hospital," he said.
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