Measuring the Value of Trust for Health Insurers

make an

impact!

March 1, 2012

Measuring the Value of Trust for

Health Insurers

#prghealthcare

COPYRIGHT ©2012 ALL RIGHTS PROTECTED AND RESERVED

Today’s Speakers

Elizabeth Glagowski Executive Editor, Strategy Peppers & Rogers Group

Marc Ruggiano Partner,

Peppers & Rogers Group

Tom Lacki, Ph.D. Director of Research



Event Logistics

Please turn off your pop-up blocker • You will not be able to participate in today’s survey

Download a PDF of today’s slides

• Click the green PDF icon

Have a question for the presenters? • Click the red Q&A icon

Helpful tools • Click the gold question mark for help with technical issues

• Enlarge slides when needed

• Twitter Hash tag: #prghealthcare


Agenda

What Health Insurers Are Facing Today

Why Trust Matters

Creating a Trusted Environment


What Health

Insurers Are Facing Today


US Healthcare Spending Leads OECD

Total Health Expenditure, Per Capita (PPP adjusted dollars)

Source: OECD Health Data (database) from Kaiser Family Foundation via http://facts.kff.org/ accessed on February 25, 2012.


http://facts.kff.org/

While Life Expectancy Lags Considerably

40

50

60

70

80

90

Source: OECD FactBook 2010; via www.oecd-ilibrary.org/ accessed on February 25, 2012.

Life Expectancy at Birth, Total (Number of Years)


http://www.oecd-ilibrary.org/



and Consumers Rate the Experience Poorly

Customer Experience Index (CxI) by Industry

Source: Forrester Research, The Customer Experience 2012


Source: Peppers & Rogers Group research

Consumer Perception of Today’s Health Insurers



The result is an environment of distrust …

43%

19%

38%

0%

10%

20%

30%

40%

50%

Distrusters Neutral Trusters

Re

spo

nd

en

ts



… which puts all insurers at risk of consumer defection

The Affordable Care Act will offer options to the distrusting and disengaged

Source: Forrester Research

“How likely are you to switch

health insurance providers

next year?”

“You indicated that you are unlikely to switch

health insurers. Which of the following is closest

to the reason you are not likely to switch?”


Consumers Describe the Ideal Health Insurer







Why

Trust Matters


Looking Through the Trust Lens


Levels of Customers’ Trust

“My health insurer can be trusted”

0 1 2 3 4 5 6 7 8 9 10

Distrusters Neutrals Trusters



Customers’ Trust in the Health Insurance Sector

43%

19%

38%


Trust



Trust Impacts the Perception of a Health Insurer

-3

-2

-1

0

1

2

3

Clear/Confusing

Easy/Difficult

Caring/Uncaring

Generous/Stingy

Fair/Unfair

Compassionate/Uncompassionate

Flexible/Inflexible

Helpful/Unhelpful

Believable/Unbelieveable

Effective/Ineffective

Warm-hearted/Cold-hearted

Fast/Slow

Cooperative/Combative

Friendly/Unfriendly

Informative/Uninformative

Reliable/Unreliable

Kind/Unkind

Superior/Inferior

Up-to-date/Outdated

Accessible/Inaccessible

Organized/Disorganized

Transparent/Secretive

Distrusters Trusters Source: Peppers & Rogers Group research


Poll question


Customers’ Trust in Health Insurers


Customers’ Trust for Individual Health Insurers

0%

20%

40%

60%

80%

100%

Anthem BCBS United Healthcare

Aetna Humana CIGNA Kaiser Permanente

Res

po

nd

ents

Health Insurer




Share-of-Trust

Share-of-Trust = Trust in Health Insurer

Trust Capacity

Trust Capacity = Σ General Belief that Most People Can be

(a) Trusted, and are (b) Fair and (c) Helpful

3


Share-of-Trust by Health Insurer

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8

Humana

United Healthcare

CIGNA

Aetna

Kaiser Permanente

Anthem Blue Cross Blue Shield

Share-of-Trust

Hea

lth

Insu

rer



Taking Action to Improve

Customer Trust


The Basics

0

1

2

3

4

5

6

7

8

9

10

Does a great job of keeping the promises it

makes

Processes claims accurately

Demonstrates a high level of business

and technology innovation

that directly benefits me

Covers me when I'm traveling away from

home

Makes enrolling in the plan easy and

straightforward

Works well with my primary doctor's office

Is typically first to market with new

services

Rat

ing

Distrusters Trusters

Scale: 0 = strongly disagree, 10 = strongly agree Source: Peppers & Rogers Group research


Communications from the Health Insurer

0

1

2

3

4

5

6

7

8

9

10

Communicates clearly with me

Proactively alerts me to potential problems and issues that may affect my coverage

Provides easy to read statements and

explanation of benefits

Uses simple language and words I can easily

understand

Communicates with me on a timely basis

Sends me communications that

reflect my unique needs and interests

Rat

ing




Trust and Communication Frequency and Channel

0%

20%

40%

60%

80%

100%

Too little Just right Too much All of the time

Some of the time

None of the time

Res

po

nd

ents

Truster

Distruster

Volume of communication

from health insurer Amount of time health insurer

uses preferred channel of

communication



Communications with the Health Insurer

0

1

2

3

4

5

6

7

8

9

10

Representatives of my health insurer

listen carefully to my issues and concerns

I can typically solve any problem I am

having by contacting my health insurer

Representatives do an excellent job of

understanding complex issues

I am able to reach a representative of my

health insurer in a reasonable amount

of time

My issues, problems and concerns are

typically resolved in one contact

At the conclusion of a contact, I am

warmly and genuinely thanked

for being a customer

I am asked for feedback on my health insurer's

representatives each time I make contact

Representatives of my health insurer

apologize immediately when a

mistake has been made

Rat

ing




Goodwill

0

1

2

3

4

5

6

7

8

9

10

Focuses on doing the right thing for its customers

Demonstrates truthfulness and a high level of

believability

Has earned my respect Has a strong reputation for honesty and openness with its

customers

Places my interests above its own

Rat

ing




Reaping the Rewards of

Improved Trust


Poll question


Trust Impacts Commitment

0

1

2

3

4

5

6

7

8

9

10


Co

mm

itm

ent*

Example Items

I feel a strong attachment to my health insurer.

I am fully committed to my health insurer.

It is worth my effort to work closely with my health insurer.

My relationship with my health insurer is very important to me.

* Factor weighted mean of responses to 4 questionnaire items assessing “commitment.”



Trust Impacts Loyalty

0

1

2

3

4

5

6

7

8

9

10


Loya

lty*

Example Items Because my health insurer has created a strong, delightful customer experience for me, I have no need to look for better alternatives..

I anticipate that I will remain a customer of my health insurer for a long time. I feel a strong sense of loyalty to my health insurer.

* Factor weighted mean of responses to 5 questionnaire items assessing “loyalty.”



Trust Impacts Advocacy

0

1

2

3

4

5

6

7

8

9

10


Ad

voca

cy*

Example Items

How likely would you be to recommend your current health insurer to a friend or colleague? If asked by your health insurer to serve as an ambassador to your community on their behalf, how likely would you be to participate?

* Factor weighted mean of responses to 2 questionnaire items assessing “advocacy.”



Sensitivity of Outcomes to Trust

0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45

Kaiser Permanente

CIGNA

Humana

Aetna

United Healthcare

Anthem BCBS

Change in Outcome per Unit of Trust

Hea

lth

Insu

rer

Commitment Loyalty Advocacy



Trust and Employment

0

1

2

3

4

5

6

7

8

9

10

I would recommend to my employer that we keep the same health insurer next year

If my employer switched to a different health insurer, I would try to find another job allows me to stay with

my current health insurer

Rat

ing

Distrusters

Trusters



Trust Impacts Health Outcomes

0

1

2

3

4

5

6

7

8

9

10

Follow Doctor's Instructions Follow Health Insurer's Instructions Healthier Because of Health Insurer

Rat

ing




Customers Value Trustworthiness

0%

10%

20%

30%

40%

50%

$0 $1-$25 $26-$50 $51-$100 $101-$150 $151-$250 $251 or more

Res

po

nd

ents

How much more per month, if any, would you be willing to pay in premiums for a health insurer with high levels of trustability?



Why Trust Matters

In summary, …


Creating a

Trusted Environment


6 Building Blocks of Trust

Trust

Goodwill

Empathy

Transparency

Accountability

Competence

Customer Experience

Empowerment

Recognition

Anticipate customers’ needs, understand the context in which they present, and work to

deliver beneficial solutions

Proactively and reactively communicate openly with customers about information,

policies, decisions, and outcomes

Take ownership and action at the individual and organizational level when customers

encounter negative experiences

Deliver accessible, convenient, consistent, and credible experiences to customers

regardless of all else

Train, enable, and authorize employees to take actions that earn customers’ trust

Recognize and reward trust-building actions and customer-centric behaviors of high-

performing employees


Customer Experience

Customer Experience as a Trust Driver

Can our customers reach us through their desired channels and complete their intended actions? ?

Do we measure our customer experience performance and its impact on trustability? ?

Do our customers receive the same messages and have access to the same capabilities across channels? ?

Do we ensure that we deliver on commitments we make to our customers (e.g. trackable confirmation numbers, scheduled follow-up actions, etc.)?

?

Are our customers served by trained, relevant, empowered, understanding employees? ?

Deliver accessible, convenient, consistent, and credible experiences to customers

regardless of all else

Trust

Goodwill

Competence


2011 2012

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

Phase 1 Initiatives

Phase 2 Initiatives

Phase 3 Initiatives

Building a Platform for Trustability

1.1 High

Impact

1.2 Med.

Impact

1.3 Low

Impact

2.1 High

Impact

2.2 Med.

Impact

2.3 Low

Impact

3.1 High

Impact

3.2 Med.

Impact

3.3 Low

Impact

7 Initiatives

12 Initiatives

5 Initiatives


Q&A Session







We’re Just Getting Started…

1. You will receive: “Creating a Healthy Level of Trust,” a special preview from Customer

Strategist, the executive journal from Peppers & Rogers Group

2. Join us for upcoming webinars in the “Trust” series: • “The Roadmap to Trustability” – March 28

• “The Social Media Agenda for Healthcare” – April 25

• “Case Study: Making the Consumer-centric Transformation” – May 17

3. Come visit our booth at World Healthcare Congress • April 16 – 18 in Washington, DC

4. Trustability Working Sessions • Schedule your own on-site working session for your colleagues

5. Follow us on Twitter @PeppersRogers


Q&A Session







For more information please contact:

Marc Ruggiano Partner

[email protected] +1.203.989.2189 (office)

Tom Lacki, Ph.D.

Director of Research

[email protected]

+1.203.989.2199 (office)


mailto:[email protected]

mailto:[email protected]

Health & Medicine

Measuring the Value of Trust for Health Insurers