Insurance Satisfaction: How Happy Are Customers?

Most people are satisfied with their insurance, according to a range of polls and surveys. A 2019 survey by HealthEdge found that 78% of respondents were satisfied with their health plan overall, while a 2019 Gallup poll found that 71% of Americans rated their private coverage as excellent or good. However, insurance premiums have been rising at double-digit rates, prompting even loyal customers to shop around for better deals. Despite this, the majority of people remain satisfied with their insurance coverage and quality, with only a minority expressing dissatisfaction or a desire to switch providers.

People are satisfied with their health insurance but want better communication from insurers

A 2019 poll by Hart Research on behalf of "Get America Covered" found that 84% of insured consumers are satisfied with their current health insurance plan. This is in line with a Gallup poll, which found that 80% of Americans rate the quality of healthcare they receive as "excellent" or "good", and 69% believe their healthcare coverage to be "excellent" or "good". The same poll also found that 61% of Democrats are satisfied with their healthcare costs.

However, Americans are less positive about healthcare in the US in general. Only a bare majority (55%) rate the quality of US healthcare positively, and about a third give positive reviews of US healthcare coverage (34%). This is reflected in an international survey by the US health policy charity the Commonwealth Fund, which found that the US is the nation most dissatisfied with its healthcare system. Just 16% of respondents in the US said that minor changes were needed in healthcare, while 34% said the system needed to be rebuilt completely.

While Americans are generally satisfied with their health insurance, there is room for improvement in communication from insurers. For example, some policyholders may be unaware of rising insurance premiums, as the cost of home insurance is often lumped into monthly mortgage payments. As a result, they may be paying two or three times as much as others in the same zip code, depending on the insurance company. Better communication from insurers could help policyholders make more informed decisions about their coverage and costs.

People are shopping around for better insurance deals due to rising premiums

Insurance companies cite several reasons for the price increases, including the rising cost of home and auto repairs, and increased storm damage linked to climate change. These price hikes are affecting policyholders across the country, not just in disaster-prone states like Florida and California. For example, Andy Palen, who lives outside Milwaukee, saw his homeowners' insurance policy increase by $500 last year, despite having no claims.

As a result, a growing number of frustrated customers are now shopping around for more affordable policies. While insurance premiums are generally rising, there is significant variation in pricing between different carriers. Customers in the same zip code may pay two or three times as much as others, depending on the company they choose. This has led to a record number of auto and homeowners' insurance customers exploring switching carriers in the last year.

When shopping for insurance, it's important to compare policies with the same coverage and deductibles to find the best deal. Shopping around can also help establish yourself as a price-conscious consumer, which may make insurance companies less likely to raise your premium. Additionally, companies may have access to information about your shopping habits and can determine how price-sensitive you are, which could influence their pricing decisions.

Most people rate their private health insurance as excellent or good

The share of Americans who rate their private health insurance highly is even higher when considering the quality and coverage of the healthcare they personally receive. In this case, 80% of Americans rate the quality as "excellent" or "good", while 69% say the same about their coverage. This is in stark contrast to how Americans view healthcare in the US in general, with only about a third giving positive reviews to US healthcare coverage.

The ratings of private health insurance also differ based on party affiliation. While 65% of Democrats have favored a government-run system, only 13% of Republicans do. Additionally, Republicans and Democrats have differing views on satisfaction with healthcare costs, with 73% of Republicans satisfied compared to 52% of Democrats.

It is worth noting that private insurance does not enjoy as much support as Medicare and Medicaid, which received an "excellent" or "good" rating from 82% of Gallup respondents. However, it is clear that a significant portion of Americans value their private health insurance and believe it provides them with quality coverage.

People are more satisfied with their personal healthcare costs than the total cost of healthcare in their country

While Americans express dissatisfaction with the US healthcare system, they are relatively satisfied with their personal healthcare costs. Since 2001, slim majorities of Americans have reported satisfaction with the cost they pay for their personal healthcare, ranging from 54% to 64%. The latest reading, 58%, matches the average over that time.

However, Americans are less likely to report satisfaction with the total cost of healthcare in the US. The current 20% nearly matches the 21% average over the same time period. While Americans are more likely to be satisfied than dissatisfied with their own costs, they tend to see the overall US healthcare system as overly expensive for others.

The cost of healthcare in the US is a burden on families, and these costs factor into decisions about insurance coverage and care-seeking. Healthcare costs and the prospect of unexpected medical bills rank as the top financial worries for adults and their families.

The cost of healthcare can lead some to put off needed care. One in four adults say that in the past 12 months they have skipped or postponed getting healthcare they needed because of the cost. Six in ten uninsured adults (61%) say they went without needed care because of the cost.

Healthcare costs are a heavy burden for adults from households where someone has a chronic illness. In 2005, more than half (56%) of Americans reported that they or someone else in their household had been diagnosed with a chronic illness. This group had a significantly harder time accessing healthcare due to cost.

Despite the high costs, a majority of Americans want more money spent on healthcare. In 2006, a survey found that 57% of respondents thought that the US was spending too little on healthcare in aggregate, and 70% said that the government was also spending too little.

In summary, while Americans are generally satisfied with their personal healthcare costs, they are less positive about the total cost of healthcare in the country. The high costs of healthcare impact individuals' access to care and are a significant financial concern, but most Americans believe that more money should be spent on healthcare overall.

Older generations are more satisfied with their insurance than younger generations

It is clear that older generations are more satisfied with their insurance than younger generations. This is true across the board, from health insurance to home and auto insurance. For example, a survey by Survata for HealthEdge found that 91% of the silent generation and 80% of baby boomers were satisfied with their health insurance, compared to 76% of millennials and 72% of Generation X. Similarly, a Gallup poll from 2018 showed that US adults aged 65 and older were most satisfied with their healthcare coverage and quality, while young adults had the lowest average ratings.

This trend can be attributed to a variety of factors, including the life stage and priorities of each generation. Older generations tend to focus more on retirement and financial planning, which may explain their higher satisfaction with their insurance coverage. On the other hand, younger generations, such as millennials, are often starting families and establishing their careers, which may contribute to their lower satisfaction with their insurance. Additionally, younger generations have grown up in a digital age, with the internet, social media, and smartphones playing a significant role in their lives. This has created a digital disconnect between insurance companies and younger customers, with younger generations preferring text communication and digital payment methods.

While younger generations may be less satisfied with their insurance, it is important to note that overall satisfaction rates with benefits are relatively similar across generations. For instance, 53% of Gen Xers reported being satisfied with their benefits, compared to 52% of millennials and 49% of baby boomers. This suggests that while there may be generational differences in satisfaction levels, the majority of people across all generations are relatively content with their insurance coverage.

To improve satisfaction among younger generations, insurance companies need to bridge the digital divide by offering a wider range of digital services and communication channels. By understanding the preferences and expectations of younger customers, insurers can better meet their needs and increase satisfaction. This may include providing digital payment options, all-in-one apps, and faster response times.

In conclusion, while older generations tend to be more satisfied with their insurance than younger generations, there is an opportunity for insurance companies to improve their offerings and increase satisfaction among younger customers by embracing digital transformation and catering to their unique preferences.

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