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HBF background, structure and governanceYou can use the following quick links to the information contained on this page:
IntroductionHBF is a membership based organisation operating under mutual principles, providing quality service to West Australians. With more than 900,000 members, it has been supporting the health and wellbeing of most West Australians for more than 65 years. HBF is WA's largest health insurer and through its insurance subsidiary is a top four provider of travel, home and car insurance. With no shareholders seeking dividends or returns on their investment, HBF exists solely to provide continually improving services to its members and loyal customer base at ever-competitive prices. Unlike its publicly listed counterparts, whose control may become subject to a corporate takeover, possibly hostile, HBF's constitutional and legislative base is distinctive, assuring continuity for the benefit of its members. HBF's Board operates under strict regulations and guidelines and follows rigorous and professional practices normally associated with listed entities. The Board constantly reviews its corporate governance practices and structures to ensure it adapts to the changing regulatory, political and market environment while retaining HBF's core focus of providing affordable services for Western Australians. In recent times external factors, such as rising costs, new technology and the ageing population, have placed great pressure on the health insurance industry. As a result, HBF has had to examine alternative sources of income to cover the growing costs associated with the health fund and keep the pressure off health insurance premiums. Corporate BackgroundThe success of this Western Australian icon lies in the unique combination of the vision of its founding members and its ability to adapt to a modern, commercial environment. HBF was established in 1941 as the Metropolitan Hospital Benefit Fund, with the core purpose of providing affordable health services to as many Western Australians as possible. The organisation's current structure and operations can be directly traced back to its origins as a key provider of social services prior to the introduction of universal government health cover (ie; Medicare). It was established to provide a pool of funds from contributors (or members) to cover the provision of health services at Perth's three metropolitan hospitals. Without any government cover at the time for health services, the organisation was critical in ensuring that Western Australians were able to access quality health services. The organisation was developed not to generate profits, but to ensure the ongoing provision of affordable health services to as many people as possible. Since its inception, the Fund has grown from strength to strength, quickly becoming the leading provider of health insurance in WA. Its strong tradition of community support continues today, both in terms of legislative platform and strategic intent. HistoryIn October 1945, the word 'Metropolitan' was removed from the Fund's name after coverage was extended to all Western Australian hospitals. In 1975 HBF diversified into non-hospital, ancillary health services and began covering such services as physiotherapy and podiatry. With the introduction of the Federal Government's Medibank in 1975 and Medicare in 1983, the health insurance industry changed significantly. Partly in response to this, HBF diversified into general insurance, through its general insurance subsidiary in 1983 and began offering home, building and car insurance. In 1986 travel insurance was added, which proved very popular with members. In 1997 HBF took over administration of the St John Ambulance Fund, incorporating St John Ambulance cover into its portfolio of products and absorbing the St John membership into the HBF family. In 1999 the Federal Government introduced the 30% rebate, then Lifetime Health Cover in 2000, which saw health insurance membership numbers swell to a record 900,000. However, record membership numbers also coincided with record claims. In recent times external factors, such as rising costs, new technology and the ageing population, have placed great pressure on the health insurance industry. Health insurance claims are steadily increasing each year and have jumped $89 million or 17% in past four years. The increase in the cost of health services is significantly higher than the rate of general inflation. The health component of the CPI is about 5% (CPI is about 3.9%) and specialist hospital and medical services have increased by 5.7%. As a membership based organisation operating under mutual principles, HBF only ever increases contribution rates to what is required to cover the cost of future claims, necessary administration and ensure prudential reserves. However, with forecasts predicting a continuing increase in claims in the future, HBF has had to examine alternative sources of income to cover the growing costs associated with the health fund and ensure premiums remain affordable. In March 2000, the Hospital Benefit Fund of Western Australia was renamed HBF and the HBF logo adopted throughout the corporate group as a unifying emblem of the diverse range of products now offered beyond health insurance. In 2003 HBF, through a subsidiary company, launched financial services, which are proving extremely successful. Recently it began offering life insurance and home loans through partnerships with third party suppliers. It also plans to offer further financial services products. The diversification into new products and services will continue to support HBF's commitment to keeping premiums low and providing quality health insurance to Western Australians. HBF todayAlthough driven by member benefits rather than shareholder profit, HBF remains a highly competitive and dynamic organisation. Its adaptation to the changing regulatory and industry environment has, in turn, allowed the organisation to meet its key goals of low premiums and quality services. HBF currently has more than 900,000 members and the HBF Group is the largest health insurer in the State and top four provider of travel, home and car insurance. The organisation has about 690 employees and 20 Service Centres around WA as well as its head office in Murray Street, Perth. Its focus on members, not products, is what has made HBF one of WA's most highly regarded organisations. This focus has resulted in excellent services and low premium increases. In 2006 HBF Health paid out a record $604 million in health claims or about $2.4 million claims each working day. HBF consistently receives good results from member satisfaction surveys, with most members reporting that HBF has met or exceeded their expectations. For many years HBF has been ranked as one of WA's top brands by WA Business News. In 2006, HBF received an A-credit rating in the Australian Health Insurance Report, compiled by credit rating agency Standard & Poor's. HBF is one of only three health funds in Australia to receive such a rating. HBF remains committed to pursuing innovative solutions to reduce the impact of the growing cost of health insurance on members. HBF structureHBF is an incorporated association, governed by the Western Australian Associations Incorporation Act 1987. The legislation requires that all surplus funds or profits are re-invested in the organisation and its services and are not paid or distributed to members as dividends. The legislation echoes HBF's commitment to returning benefits to its contributors and underlies its special status as an organisation. The following diagram indicates HBF's existing corporate structure.
Corporate governanceCorporate governance is the process by which HBF and those in control are held to account. HBF Board Members and Councillors are integral in this process. The Board has overall responsibility for corporate governance at HBF, including the responsibility to determine, review and approve policy, practices, management performance and financial operations. Board members are elected by Councillors, based on their mix of skills, corporate government experience, suitability and integrity and are subject to strict conflict of interest rules. The Councillors are the formal custodians of HBF and oversee the Board. Councillors are elected by serving Councillors and registered contributors, who have been an HBF member for more than 10 years. They also must be suitably qualified in line with HBF's Constitution. In addition to HBF being obliged to comply with the Associations Incorporation Act and its subsidiaries being bound by the Corporations Act 2001 (Cwth), different operations within the group are regulated by the Private Health Insurance Administration Council, Australian Prudential Regulation Authority, the Australian Securities and Investments Commission and the Office of Fair Trading. HBF Board MembersThe HBF Board members bring a wealth of corporate and financial knowledge to the organisation. HARVEY COLLINS (Chairman) Mr Collins was appointed a Director in 1997 and is a member of HBF‘s Nomination and Remuneration Committee and the Group Structure Taskforce. He is Chairman of IBT Education Limited, Deputy Chairman of Verve Energy and a Director of Government Employees Superannuation Board, as well as several private companies. Previously he was Executive Director of listed investment company Chieftain Securities Limited and Chief Financial Officer of Challenge Bank Limited. Mr Collins is a member of the WA State Council of the Australian Institute of Company Directors. PROF JOHN WOOD Professor Wood was appointed Director in 1999 and is also a Director of HBF Insurance Pty Ltd. He is a member of HBF’s Nomination and Remuneration Committee. An economic strategist he is the Executive General Manager University Programs of IBT Education Limited and Chair of Helm Wood Publishing. Previously, he was the Deputy Vice Chancellor at Edith Cowan and Notre Dame Universities and has held positions in government and the private sector, including the Office of the Prime Minister. Professor Wood has formerly served on the board of ECU Resources for Learning, Perth Education City and was a former chair of the Committee of Economic Development of Australia (WA). VALERIE DAVIES Ms Davies was appointed a Director of HBF Health Funds Inc. in October 2005, HealthGuard Health Benefits Fund Limited in March 2006 and HBF Financial Services Pty Ltd in April 2007. She is a member of HBF’s Structure Taskforce and was a member of the Audit and Risk Management Committee until June 2007. Ms Davies is the Principal of One.2.One Communications Pty Ltd. A corporate advisor to first tier corporations, she is also a coach, mentor and presentation skills advisor. Currently a non executive Director of Iluka Resources Limited and Tourism Australia, Ms Davies has formerly held directorships with Gold Corporation, Asia Research Institute – Murdoch University, Totalisator Agency Board (TAB) WA, ScreenWest, the Board of Management of Fremantle Hospital & Health Service, Relationships Australia and Integrated Group Limited. She is a former committee member of the Association for the Blind WA and the Arthritis Foundation. PROF D’ARCY HOLMAN Professor Holman was appointed a Director in 2002 and is the Chairman of HealthGuard Health Benefits Fund Limited. He is a member of HBF’s Structure Taskforce. In 1994, Professor Holman was appointed the Foundation Chair in Public Health at the University of Western Australia and was the university’s inaugural Head of the School of Population Health, one of the nation’s most productive research centres in the health field. Professor Holman’s record of service to community and government organisations is extensive. In 2006, he was awarded the Sydney Sax Public Health Medal of Australia for solving health problems, advancing community awareness of health measures and advancing equity in the provision of health care. PETER WALLACE Mr Wallace was appointed a Director of HBF Financial Services Pty Ltd in 2004 and HBF Health Funds Inc. in October 2005. He became Chairman of HBF Financial Services Pty Ltd in 2005 and is a member of HBF’s Structure Taskforce. He was the Head of Corporate (WA) for Bell Potter Securities Ltd. Until his retirement from banking in 2001, Mr Wallace held senior positions with Challenge Bank Ltd (later Westpac Banking Corporation) and was a member of its executive management team from 1989 to 2001 where he worked as its Chief Operating Officer, Chief Credit Officer and in other general management roles. Mr Wallace worked with National Australia Bank between 1967 and 1989, where he had extensive involvement in corporate financing activities of major Australian and Japanese companies. He is currently on the Board of a number of listed and unlisted entities, including charitable organisations. AM (TONY) IANNELLO Mr Iannello has been appointed as Non Executive Director for HBF Health Funds Inc and Chair of HBF Insurance Pty Ltd. He is also a member of HBF’s Group Audit and Risk Management Committee and the Structure Taskforce. He is currently a Director of SP Ausnet Group of Companies and is Chairman of MG Kailis Group of Companies and Harrier Resourcing People Pty Ltd. He is also a member of the Murdoch University Senate and the Unisys Australia Council. Mr Iannello was previously the Managing Director of Western Power and prior to that held a number of senior executive roles at BankWest. He is a graduate of the Advanced Management Program at Harvard Business School, Boston USA. ROB BRANSBY (Managing Director) Mr Bransby was appointed CEO of HBF in January 2007 and is a Director of HBF Insurance Pty Ltd, HBF Financial Services Pty Ltd and HealthGuard Health Benefits Fund Ltd. He is a highly regarded strategic leader and business developer, who has had a very successful career in financial services. Mr Bransby is a licensed finance broker and he has nearly two decades of experience with financial services organisations in both Western Australia and New South Wales. Mr Bransby joined HBF in October 2005 as Group General Manager, with responsibility for implementing HBF’s diversification strategy. Prior to joining HBF, Mr Bransby was Chief Executive Officer of Medfin Australia Pty Ltd, a subsidiary company of National Australia Bank. Mr Bransby has held a number of positions with National Australia Bank, including Head of Personal Financial Services WA, Head of Business Financial Services NSW, Regional Business Manager Fremantle WA, Area Manager WA and various branch manager positions. He is a Board Member of the Australian Health Insurance Association, Chairman of United Way and Counsellor of the Financial Services Institute of Australia. BARRY JOHN HONEY Mr Honey was appointed a Director in October 2007 and is currently a Director of General Insurance. He is also Chairman of HBF’s Audit and Risk Management Committee. He is a Chartered Accountant and from 1985 to 2004, was a partner in KPMG. He developed his specialist expertise in advising stakeholders in companies on financial performance and solvency issues working on major engagements in Australia and South East Asia. During 2004, Mr Honey retired from KPMG to establish the boutique accounting and advisory firm of Honey & Honey. He is currently a non-executive director of Plan B Group Holdings Limited, Plan B Trustees Limited, Churches of Christ Homes and Community Services Inc, and Westcare Inc. He is also the Honorary Treasurer and member of the General Committee of Royal Perth Yacht Club of Western Australia Inc. In addition to sitting as a non-executive director on each of these boards, Mr Honey also serves on the Finance and Audit Committee of each board. From time to time Mr Honey is also engaged as an independent expert witness to assist the Courts on complex financial issues. MARY WOODFORD Ms Woodford was appointed a Director in August 2007 and is now a Director of General Insurance and Financial Services. She is Legal Counsel at the University of Western Australia having recently been Consultant, Corporate & Commercial, with Jackson McDonald Lawyers. Ms Woodford commenced her career as a registered nurse and has held a number of senior positions in the public and private sector advising on legal and policy matters, including Principal Policy Officer to the Minister for Health and Director Legal & Policy with the Australian Medical Association (WA). She has served as a member of a number of committees for legislative reviews and reform and in recent years has focused on providing corporate and commercial legal advice to clients in the private sector including statutory authorities, health and education institutions and not-for-profit organisations. Ms Woodford’s key areas of advice have included corporate governance, risk management, compliance and public law. Currently Deputy Chair John XXIII College Council, Ms Woodford has formerly been a board member of the Heart Foundation (WA) and a member of the Joondalup Health Campus Ethics Committee. ANNE TEMPLEMAN-JONES (46) BCom ExecMBA (AGSM) CA MAICDMs Templeman-Jones was appointed a Director in July 2004 and is the Chairman of HBF’s Audit and Risk Management Committee and a member of the Nomination and Remuneration Committee. She is currently the Head of Private Banking (NSW, ACT, WA) at Westpac. Her career began with Price Waterhouse in Switzerland, Perth and Sydney and after qualifying as a Chartered Accountant in 1987, commenced a corporate banking career with the Bank of Singapore. Ms Templeman-Jones has previously worked with Challenge Bank, the Bank of New Zealand and ANZ Banking Group. |
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