Health insurance customers enjoy peace of mind

Health insurance customers enjoy peace of mind and will sacrifice other spending to maintain cover

Auckland, 17 March 2016 – Health insurance provides peace of mind to many according to the latest survey from customer satisfaction company, Canstar Blue, but rising premiums have caused nearly a third to reduce or change their cover.

Older New Zealanders appear to be most price sensitive, says Jose George, Canstar New Zealand General Manager.

“Many older people are on fixed incomes, so they have to look at ways of managing rising premiums. Forty three per cent of 60 to 69s and 46% of over 70s in our survey have taken steps to reduce premiums.

“We know that health insurance provides peace of mind and reduces worry for all age groups. It’s no surprise that many (63%) will sacrifice spending in other areas before relinquishing their healthcare policy.”

Rising premiums are a puzzle across all age groups with 40% saying they don’t understand why their premiums keep rising. Nearly a quarter have compared premiums online in the past 12 months, but switching activity is very low; only three per cent have changed providers in the last 12 months.

“Customers’ pre-existing conditions can deter switching,” says George.

“Just over half stay with their current provider because of pre-existing conditions, and this number rises significantly as customers age. Despite this, almost 1 in 5 from the over 70s age group have checked premiums over the last year.”

Other reasons for not switching:
· 56% are happy with their current provider

· 20% have a joint or family policy so need to consider other family members

· 17% say it is too difficult to change

· 16% receive more benefits as a long term member

The survey asked participants to rate their health insurance providers across the following variables:

1. Value for money (i.e. is it worth the money paid)

2. Claim lodgement (ease of lodging claim)

3. Claims process (end to end claims process)

4. Claims outcome

5. Speed of response

6. Quality of service

7. Communication

8. Overall satisfaction with health insurance provider

Southern Cross Healthcare topped the table with five star scores across the board, says George.

“The survey shows that while health insurance policy holders place high importance on value for money (32% of drivers of satisfaction), customer interaction during the claims process (making the claims process easy from lodgement to processing, speed of response, quality of service and communication), is even more important (55% of drivers of satisfaction). Southern Cross Healthcare is doing a very good job of meeting their customers’ needs.”

Health Insurance 2016

http://www.canstarblue.co.nz/banking-insurance/health-insurance/

Combined health insurance habits/attitudes by region: (exceptions only)

Auckland

Most likely (65% - equal with Wellington and Canterbury) to sacrifice spending in other areas before relinquishing their healthcare policy. Most likely (25% - equal with Wellington) to compare prices online in the past 12 months.

Waikato

Most likely (32%) to reduce cover as premiums have risen. Mostly likely (57%) to stay with their current provider due to pre-existing conditions. Least likely (57% - equal with Bay of Plenty) to sacrifice spending in other areas before relinquishing their healthcare policy.

Wellington

Most likely (92%) to like the peace of mind a health insurance policy provides. Most likely (65% - equal with Auckland and Canterbury) to sacrifice spending in other areas before relinquishing their healthcare policy. Most likely (25% - equal with Auckland) to compare prices online in the past 12 months.

Canterbury

Most likely (65% - equal with Auckland and Wellington) to sacrifice spending in other areas before relinquishing their healthcare policy. Most likely (46%) to not understand why premiums keep going up.

Otago

Least likely (20%) to reduce cover as premiums have risen. Least likely (86%) to like the peace of mind a health insurance policy provides. Least likely (36%) to stay with their current provider because of pre-existing conditions. Least likely (31%) to say they don’t understand why premiums keep going up.

Bay of Plenty

Least likely (57% - equal with Waikato) to sacrifice spending in other areas before relinquishing their healthcare policy. Least likely (16%) to have compared premiums online in the past 12 months.

*This geographical breakdown outlines exceptions only

About the survey

Canstar Blue commissioned Colmar Brunton Australia to use the ConsumerLink panel to survey 2,500 New Zealand consumers across a range of categories to measure and track customer satisfaction.

The outcomes reported here are the results from a survey of Kiwis who currently have I have a health insurance policy (which they pay for) and have made a claim within the last 12 months. In this case there were 1154 people surveyed.

ENDS

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