The ABI is setting up a new health committee to represent all sectors of health insurance.

A spokeswoman said that the committee was in its formative stages and the members had not yet been finalised.

"The committee will be looking at ways to work with the state and increase private sector opportunities," she said.

"It will promote health insurance and explore funding opportunities."

Head of the ABI's private medical insurance committee Mike Hall is representing private medical insurance on the committee.

"This will give health a high profile in the ABI," he said. "It is an extremely positive way forward and will enable the ABI to better lobby the government."