Health insurers can differentiate themselves more on service and group insurances

The major health insurance companies are able to differentiate themselves more on the services to their customers and on group insurances. Not only do the insured directly benefit from better service, it also contributes to the quality and diversity of health care services of providers. With customized group insurances, too, health insurers are able to contribute to a better quality of care and prevention.

This has been revealed by a joint study conducted by the Netherlands Authority for Consumers and Markets (ACM) and the Dutch Healthcare Authority (NZa). The study looked into the room that health insurers have to differentiate themselves more. More diversity between health insurers gives patients and insured more options to choose what they consider important, both when choosing an insurance policy and when selecting a health care provider.

Improving their service

Health insurers can improve their service by, among other things, actively contacting their customers for care mediation or care advice. Health insurers receive little incentives from insured or from society to invest in such services. Many insured are also not aware that health insurers offer these services. On the other hand, insured that do make use of their insurer’s advice are, by and large, satisfied about it. Insurers can do more in this respect. With good care advice or care mediation, the insured are able to make better choices between health care providers. This will also benefit the quality of health care options.

It also works the other way round: more attention from the insured to the advice and mediation of their insurers gives health insurers the incentive to do more in this area.

Group insurances with attention to the quality of care and prevention

Health insurers are able to differentiate themselves more by focusing their attention on the quality of care and/or prevention in group insurances. They have much less room for this in individual insurances. In that segment, health insurers compete predominantly on premiums and freedom of choice, because the insured particularly also pay attention to these aspects when choosing their policies.

Nearly 70% of the insured is covered by a group insurance, for instance through their employer or municipality. The goal of group insurances is to offer a customized insurance package to a specific group of individuals. This could be, for instance, individuals with similar health risks or social problems. Examples of group insurances are those offered by municipalities for individuals with lower wages, and employers with a lot of employees. Employers could, for example, make arrangements with health insurers about the prevention of RSI or lower back pain. Many of the existing group insurances currently do not offer customized care, but merely offer price advantages.