Customer service at insurance companies found lacking

Customer service has not notably improved among the nation's health insurers, despite significant investments many have made in technology to help their service.

Management consulting firm Accenture published a report that found expectations of good customer service have risen sharply in the past five years, but insurers are failing to meet those expectations. The report's authors say insurers are investing in technology instead of understanding the needs of their customers.

In a survey of 1,000 health plan members, 20% said their expectations of customer service increased in the past year, and 41% said their expectations were raised in the past five years. But only 11% strongly agree that customer service has improved during the last five years because of the increased use of technology; 17% strongly agree that it hasn't improved (link).

Technology investments included automated phone attendants, live Web chats, self-service Web functions and mobile technology. The report's authors found those investments helped reduce costs by increasing the level of self-service, but did not improve the customer service experience.

Doug Van Wingerden, a senior executive with Accenture, said that while the survey was aimed at plan members, he wouldn't be surprised if physicians felt they were getting the same level of service as their patients.

He said because many companies outside the insurance industry have stepped up to offer exceptional customer service as a means of earning loyalty, expectations have risen among customers of health plans. Though 42% of insurance plan members say they are satisfied with their insurers, only 23% reported feeling a sense of loyalty and 7% said it was extremely likely they would buy more products and services.

Van Wingerden said loyalty will play a larger role in customer retention in coming years as people are faced with choices beyond the insurance plans offered by their employers as a result of health system reform. "Customers are voting with their feet when they have a choice, primarily because of customer relationship experiences," he said. The survey should serve as an "early warning" to insurers.

Respondents to Accenture's survey found 22% disagreed that their insurers tailor their service to match the needs, preferences and values of customers.

"As customers are growing more exacting, their health insurers are struggling to pass service muster," the study authors wrote. "In fact, our research found a large gap between what matters to the customer and the perceived performance of health insurance companies."