Health Insurance and Airlines: Close Partners for Dissatisfaction

Few industries have offered less satisfaction to consumers over time than commercial airlines, but now health insurers find their policyholders nearly as disgruntled as air travelers in the American Customer Satisfaction Index’s annual study on Finance and Insurance industries. While subscription TV and Internet service providers earn the very lowest ratings among 43 industries in the Index, health insurers share a berth close to both airlines and social media among ACSI’s bottom five.

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Among the three insurance categories in the study, health shows the biggest decline in policyholder satisfaction, down 4.1% to 70—the industry’s lowest ACSI score since 2005. The satisfaction history of health insurance, however, reveals a record of lower performance than other insurance types. Claims processes are more complex, but also more frequently used, which means there are more opportunities for things to go wrong. High premiums, along with deductibles and co-pays, may feel as hard on the wallets of consumers as shrinking legroom is on passengers’ knees.

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But the adverse effect of higher cost on satisfaction this year stems primarily from employer-provided group policies, which are by far the industry’s largest segment. Satisfaction with group policies tumbles 7% to a very low benchmark of 67 whereas individual policies are unchanged at 74. If the industry were evaluated on group policies alone, customer satisfaction would dip below airlines.

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Nearly every aspect of the customer experience for health insurance policyholders has deteriorated over the past year—several by 5% or more. Consumers are much less pleased with prescription drug coverage, as well as coverage of standard procedures. They find it more difficult to submit claims and are frustrated when dealing with call centers. While bright spots are access to primary and specialty care, the industry falls well short of the customer experience offered by other insurance types.

Download ACSI Finance and Insurance Report 2014 »

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