Health insurance companies are facing a significant challenge in delivering satisfactory customer experiences, according to a comprehensive new report from Forrester Research. The findings reveal troubling gaps in how major health insurers serve their existing members while struggling to attract new customers in an increasingly competitive marketplace.
Forrester Report Reveals Industry-Wide Performance Issues
The research firm’s latest analysis evaluated health insurers using their proprietary brand experience index, which carefully measures both customers’ and non-customers’ brand perception. Additionally, Forrester assessed customer experience metrics that rate the quality of customer service delivery and member loyalty across the health insurance sector.
The results paint a concerning picture for the health insurance industry, with significant implications for both consumers and healthcare stakeholders.
Health Insurance Industry Ranks Lowest Among All Sectors
Health insurers received an alarming total experience score of just 53.6 on Forrester’s 100-point scale. This disappointing performance places the health insurance industry at the bottom of all 10 industries that Forrester regularly evaluates and ranks.
The low ranking highlights systemic issues within the health insurance sector that extend far beyond individual company performance. These findings suggest that fundamental changes are needed across the entire industry to improve member satisfaction and brand perception.
Minimal Variation Suggests Industry-Wide Problems
Perhaps most striking about Forrester’s findings is the remarkable consistency in poor performance across different health insurance providers. The research revealed minimal variation among insurers, with all but two companies evaluated by Forrester receiving scores within just five points of the industry average.
This narrow range of scores indicates that customer experience challenges are not limited to specific insurers but represent widespread industry issues affecting virtually all major health insurance companies.
Top and Bottom Performers in Health Insurance Rankings
CareFirst BlueCross BlueShield emerged as the top-rated insurer for total experience, achieving a score of 61.4 out of 100. While this represents the best performance in the industry, it still falls well short of excellence by most customer service standards.
On the opposite end of the spectrum, Cigna received the lowest total experience rating among all evaluated insurers, scoring just 47.9 points. This significant gap between the highest and lowest performers demonstrates that some improvement is possible within the current industry framework.
Critical Factors Driving Health Insurance Customer Experience
Forrester’s analysis identified several key elements that contribute to strong brand experience in the health insurance sector:
Clear communication emerged as the most important factor, with members consistently rating insurers higher when they provide transparent, easy-to-understand information about benefits, coverage, and procedures.
Strong cybersecurity measures and robust data privacy protections have become increasingly important to health insurance customers, particularly as healthcare data breaches continue to make headlines.
Benefit design and delivery quality significantly impacts customer satisfaction, with members expecting seamless access to their healthcare benefits when needed most.
Customer Experience Excellence Requires Operational Focus
For customer experience specifically, Forrester identified distinct drivers of member satisfaction:
Clear communication remains paramount, but in customer service contexts, it must be combined with accurate information and empathetic support.
Fast problem resolution capabilities separate leading insurers from their competitors, as members expect quick solutions when facing healthcare coverage issues.
Alignment with members’ healthcare needs ensures that insurance products and services actually serve their intended purpose effectively.
Easily usable websites are becoming an increasingly high priority for members, according to the report, as digital interactions become the primary touchpoint for most insurance-related activities.
Complete Health Insurance Experience Rankings
Here’s how major health insurers ranked for overall customer experience according to Forrester’s comprehensive evaluation:
- CareFirst BlueCross BlueShield
- Blue Shield of California
- Health Net
- Highmark Blue Cross Blue Shield
- Florida Blue
- Blue Cross Blue Shield of Illinois
- Humana
- Anthem Blue Cross Blue Shield
- Blue Cross Blue Shield of Texas
- Anthem Blue Cross
- Kaiser Permanente
- Aetna
- Other BCBS plans
- Blue Cross Blue Shield of Michigan
- UnitedHealthcare
- Cigna
Implications for Health Insurance Industry Future
These findings suggest that the health insurance industry must undertake significant reforms to improve customer satisfaction and competitive positioning. The consistently poor performance across the sector indicates that incremental improvements will not be sufficient to address fundamental customer experience challenges.
Insurance companies that can successfully address communication clarity, digital platform usability, and problem resolution speed will likely gain competitive advantages in attracting and retaining members in an increasingly demanding marketplace.
