Strategy and governance
Our strategic approach
Our Group purpose is to "Provide trusted solutions that protect and enhance health and financial wellbeing".
Our strategy is to broaden beyond the concept of health protection to give customers more "peace of mind" on health and financial matters. Our products and services now extend beyond just traditional health insurance to include travel insurance, life insurance, retirement planning and lifestyle management.
Our goal as a business is to provide this 'whole of life' approach to health and wellbeing, through providing the right products to the right people, in the right way, at the right time in their life.
Measuring Success
Because tracking our Corporate Responsibility performance is important, we participate in the Australian Corporate Responsibility Index (CRI). MBF is proud to be the first private health insurance company to do so.
Corporate Governance
Board of Directors
The Board is accountable to the MBF Council that comprises a representative cross-section of the Fund's customers.
The Board's overall responsibilities include:
- Review and approval of corporate policy and strategies;
- Monitoring financial performance including consideration and approval of the annual budget and annual financial reports;
- Monitoring organisational performance and the achievement of strategic goals and targets;
- Appointment and assessment of the performance of the Managing Director/CEO; and
- Ensuring the significant risks faced by the Company have been identified and appropriate control, monitoring and reporting mechanisms are in place.
The Board delegates the day-to-day management responsibility to the Managing Director/CEO. The Board also uses a number of Committees to assist directors in the execution of their responsibilities. These are the Audit Committees, Nomination Committee and Remuneration Committee. In addition, Board Committees may be convened for special purposes if required.
Membership and composition
The composition of the MBF Australia Board is determined using the following principles:
- Under the Constitution, the Board has the power to determine Board size;
- The Chairman of the Board cannot be an executive of the Company. However, the Board can appoint up to two Directors who are also executives of the Company; and
- Each Director must be a contributor and a customer of MBF.
At each Annual General Meeting, one-third of the Directors (other than the Managing Director) must retire from office. Directors are eligible for re-election but may not hold office for more than nine years unless the Board resolves that they shall be eligible to stand for a further period.
Board Committees
All Board Committees include Non-executive Directors and membership is reviewed on an ongoing basis. The Board ensures that its Non-executive Directors, and executive Directors, comprise an appropriate mix of skills to provide the knowledge and experience to meet the Board's responsibilities and objectives. All Directors, including the Managing Director/CEO, are given notice of all Board Committee meetings and may attend, by invitation.
MBF Council
The MBF Council represents a cross section of the Fund's membership profile, reflecting the range of ages, geography and vocations of its customers. The Council comprises Appointed Contributor Representatives and Directors. The Council elects the Board of Directors, determines their total remuneration and conducts the business of the Annual General Meeting. MBF customers may attend the Annual General Meeting which is held in November each year.
Governors
To ensure the continuing independence and representative nature of the MBF Council, the Governors review the Board of Directors' nomination process for the appointment of Council Members. Governors have the right to approve nominations for Council membership or to return them for further consideration. They can also approve the appointment of additional members to Council. Directors must obtain the Governors' approval to appoint Appointed Contributor Representatives to fill casual vacancies.