More than half of Australians with private health insurance (59%) check customer reviews before choosing or switching to a health fund according to a new research by Money.com.au.
The research results reveal that a quarter of policyholders (25%) say they always check customer reviews before signing up with any new health insurer, while a third (34%) only research customer feedback if they haven’t heard of the fund before.
Money.com.au general manager of health insurance Chris Whitelaw said customer reviews give real insight into members’ experiences with claims, service and value for money.
He said, “On paper, two health funds can look almost identical in price and cover. Customer reviews give you a glimpse of how a fund performs when it comes to make a claim. Do they pay claims quickly, treat members fairly, or leave you stuck in red tape, as we know happens with some health funds.”
“We have seen customers choose a health fund with slightly higher premiums because reviews showed claims were processed faster and service was more reliable than other funds.”
“This trend is catching on. Over the years, we’ve seen health insurers like AIA Health Insurance, RT Health and Phoenix Health Fund promote their high customer ratings in advertising because they know Australians are paying attention. Positive reviews and strong satisfaction scores have become a competitive edge in the health insurance space.”
The survey found that one in four Australians with private health insurance (25%) stick with their fund out of habit, while 17% rely on comparison sites or word of mouth when choosing a fund.
When it comes to different age groups to choose a health fund, younger Australians are far more likely to do their homework. The survey found that three-quarters of millennials (75%) and 70% of Gen Z check customer reviews before signing up or switching health cover. By contrast, review-checking drops to 62% for Gen X and just 37% for Baby Boomers.
In contrast, older Australians are more likely to turn to word of mouth or comparison sites rather than real customer feedback. The survey found that one in five Gen X (20%) and 19% of Baby Boomers rely on these sources when choosing a health fund, compared with just 14% of Millennials and 11% of Gen Z.