More than half of people under the age of 35 are avoiding private health insurance as costs and premiums continue to rise to match the ageing population.

Private Health Insurance Intermediaries Association Chief Executive Christopher Zinn told Karl and Gena on 6PR Breakfast the industry is in need of significant change in order to adapt and become more equitable.

“One, they can’t afford it; two, they probably see they don’t need it, but there’s layers of complexity like lifetime health insurance,” Mr Zinn said.

“I think what we found is that younger people do need health insurance, because only 15 per cent thought the public system would meet their needs.”

Press PLAY to hear more about the issues facing the health insurance industry