Pre Existing Conditions Snare Health Insurance Customers

Health Insurance Too Important to Cut
Pre Existing Conditions Snare Health Insurance Customers
Canstar Blue Releases Inaugural Health Insurance Satisfaction Survey

Auckland, 11 November 2013 – Canstar Blue’s examination of customer satisfaction with health insurance providers shows that the majority of survey respondents place a high value on their policy. (To view the full results of the Canstar Blue survey go to: www.canstarblue.co.nz)

Derek Bonnar, General Manager Canstar New Zealand says that despite rising premiums, New Zealanders are reluctant to give up their health insurance.

“Just over half say that broad cover is too expensive. Thirty per cent have reduced or changed their cover as premiums increased. A majority (66%) say they will sacrifice spending in other areas before relinquishing their policy.”

According to the Health Funds Association of New Zealand, just under one-in-three kiwis have health insurance cover, equating to 1.34 million New Zealanders. Just over 50,000 kiwis have relinquished their health cover policies in the past five years.

The Canstar Blue survey indicates little in the way of price comparison or switching activity by consumers, and especially by older policy holders. More than half of all respondents cite pre-existing conditions as the reason for staying with their current provider.

Bonnar says that only 22% of consumers had compared prices online in the past 12 months, and only 6% had switched to get a better deal. Fifteen per cent had used a broker to find the best deal.

“While maintaining cover for pre-existing conditions is incredibly important, a regular comparison of your health insurance policy against the market is recommended. Premiums are expected to continue to rise as the population ages and the cost of medical care rises.”

Not for profit provider Union Medical Benefits Society (UniMed) had the most satisfied customers - ahead of Southern Cross Healthcare, NIB (including Tower) and Sovereign Assurance Company - and receives this year’s Canstar Blue award for overall satisfaction.

The survey covered seven categories:
1. Value for money
2. Ease of claim
3. Process
4. Speed of response
5. Quality of service
6. Communication
7. Overall satisfaction

Making it easy to make a claim on your policy, especially in the case where there is added stress due a medical condition, is all important, says Bonnar.

“UniMed was the only provider to be awarded a five star rating for ease of claim. It is a key part of ensuring a great customer experience. Together with five star scores for speed of response, quality of service and communication, UniMed is clearly delivering the kind of service that its customers value and appreciate.”

About the survey
Canstar Blue commissions Research Now to regularly survey 2,500 New Zealand consumers to measure their satisfaction across a range of products and services.

The outcomes reported here are the results from a survey of consumers who have a health insurance policy (that they pay for) and had also made a claim in the past 12 months, in this case, 921 people.

Age Groups:
Gen Y: 18-29
Gen X: 30-44
Baby Boomers: 45+

About Canstar Blue
Canstar Blue is a division of financial research and ratings company, CANSTAR, which has been operating in New Zealand for nearly a decade.

Canstar Blue uses market research to determine customer satisfaction ratings across a range of products and services in New Zealand to help consumers make the best purchasing decisions for their needs. Canstar Blue conducts similar research in Australia. New ratings are added regularly. Results are freely available to consumers who are encouraged to use the ratings as a guide to product excellence. The results can be seen at www.canstarblue.co.nz.

About CANSTAR
Founded in 1992, CANSTAR Pty Limited is Australia and New Zealand's premier researcher of retail finance information for over 350 institutions such as banks, building societies, credit unions, finance companies, brokers, mortgage originators, life companies and finance related internet portals. CANSTAR customers use the extensive database for competitor analysis as well as a means of disseminating their product range. This information is also distributed to print and electronic media for publication and to agents, accountants, brokers and internet portals for use in advising their clients.

ENDS

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