The report, Redefining digital experience in health insurance, found that two in five (40%) consumers who have held private health insurance in the past 12 months have either cancelled their policies, allowed them to lapse, or are considering switching. One in five (21%) said they have cancelled or are considering not renewing their policy due to poor digital experiences, while 19% cited poor customer service. Rising premiums remain the main driver, with 28% stating this as their reason for switching.
The study surveyed insured consumers about their use of insurers’ apps and websites, revealing that although 69% had used them in the past year, satisfaction levels were low. Two in five (39%) said their insurer’s app or website was not as good as others they use, and 31% found the experience frustrating.
Content was identified as the biggest challenge, with 45% feeling overwhelmed by the volume of information provided and 34% struggling to access what they need. Technical issues also featured prominently, as 37% reported problems with interface quality and speed.
These issues appear to influence customer retention. Poor customer service (37%), technical reliability (28%), and dissatisfaction with app or website experience (24%) were cited as key reasons for disengagement and potential switching.
The research also highlighted the importance of onboarding and trust-building in digital interactions. A smooth, secure onboarding process was seen as the most influential factor in building consumer confidence (41%), followed by quality of experience in terms of speed (33%), overall quality (29%), and personalisation (27%).
Graphite Digital’s report includes further insights into how insurers can improve their digital performance, focusing on user needs, consistent design journeys, and investment in key relationship points such as onboarding and claims.
Rob Verheul, CEO at Graphite Digital, said: “While cost remains critical, the future of health insurance will be won or lost on customer experience. Consumers’ experiences shape their perception of health insurers, with clunky processes, confusing platforms and a lack of value proving to be just as decisive as an unaffordable premium in driving customers away while exceptional experiences build lasting trust."
“Insurers’ digital platforms may be falling flat, but they can set things right by shifting their focus from cover to connection. Investing in pivotal trust moments like onboarding and claims, as well as creating additional value through personalisation and relevant, visible preventative content, could be the difference to winning or losing on the battleground of retention.”
