HCF to Review Ad Agencies After Key Split

Australia’s third largest health insurer is kicking off a creative agency review to find a new partner, just as major structural changes at its outgoing agency raise fresh questions around competition and compatibility. HCF aims to continue building its brand presence but now faces challenges following the shake-up at Clemenger BBDO, one of the country’s largest agencies.

HCF has worked with Clemenger BBDO since 2021, with the agency most recently developing the “We Put Our Money Where Our Members Are” campaign. The campaign helped boost the insurer’s brand salience by 31% within six months of its March 2024 debut. But the recent merger of Clemenger BBDO with its sister agencies CHEP Network and Traffik changed the playing field - especially since one of those merged agencies counts rival insurer Bupa as a client.

The merger officially came into effect in April, consolidating multiple teams under Clemenger BBDO leadership. That consolidation also triggered a wave of high-profile executive departures, including several CEOs, chief creatives, and strategy heads across both Clemenger and CHEP. The organisational shift was driven by holding company Omnicom’s plan to streamline its creative services globally through the Omnicom Advertising Group (OAG) structure.

So far, HCF is the only major client to exit following the merger, but the timing suggests a clear push to avoid potential conflicts as Clemenger BBDO moves forward with Bupa. With 12.5% of the market, HCF trails behind Bupa’s 24.9% and Medibank’s 27.1%, according to data from the Australian Prudential Regulation Authority. As HCF begins its review process, the insurer looks to solidify its marketing direction in a shifting agency landscape.

Source: The Australian, HBR, HCF