Plan members switch insurers and skip claims due to frustrating digital platforms, surveys reveal
More than one in four Gen Z policyholders are avoiding insurance claims altogether because digital platforms are too difficult to use, as reported by Insurity in its 2025 Digital Experience Index.
According to the national survey, 28 percent of Gen Z and 21 percent of Millennials have switched insurance providers due to frustrating online or mobile experiences.
The findings suggest that digital usability is no longer a secondary concern—it is a primary factor shaping consumer loyalty and engagement, particularly among younger demographics.
Insurity’s data also shows that 26 percent of Gen Z and 21 percent of Millennials are deliberately avoiding critical insurance functions such as claims due to poor digital experience.
Sylvester Mathis, chief revenue and insurance officer at Insurity, said, “Younger generations aren't just digital natives; they are the ultimate test of your technological credibility.”
He warned that insurers risk “not just user frustration but their trust and their loyalty” when digital systems are not intuitive, fast, and responsive.
As per the same survey, 61 percent of Millennials and nearly half of Gen Z now prefer paperless insurance interactions.
Yet, over half of Gen Z respondents expressed hesitance to fully trust automated insurance processes unless specific conditions are met.
Digital usability issues are not limited to P&C insurance.
As noted by David Adams, senior vice president of insurance business at Medavie Blue Cross, virtual care has shifted from a non-traditional benefit to a mainstream component of healthcare access.
Speaking with Benefits and Pensions Monitor, Adams said, “People have a better appreciation now for what digital care can provide.”
He attributed much of this shift to the COVID-19 pandemic, which encouraged plan members to try new forms of care.
Adams said this trend has continued post-pandemic, with virtual therapy and video consultations for chronic conditions now seen as part of standard care options.
“Convenience is important. Convenience is what everybody is used to, and this is making healthcare very, very accessible for that younger cohort of our plan membership,” he said.
However, Adams also pointed out that many plan members still prefer traditional in-person services, particularly for mental health and primary care.
“There are plan members who really want to sit down and speak to somebody,” he said.
As per Adams, offering a mix of digital and traditional access points is critical for aligning benefits with member needs.
“Plan sponsors want a healthy, productive, predictable workforce,” he said, noting that the delivery of care now requires more flexibility.
He added that while comprehensive digital services may already exist in many plans, they are only effective if employees know how to use them.
“Providing the service is one thing, communicating that the services [are] available is another,” said Adams. He stressed that member portals, apps, and advisor platforms must simplify access and clarify options.
Adams defined healthcare navigation as “helping people get access to care in the most efficient way, and that they understand how to do it.”
He said, “It’s incumbent on all of us to make sure that we have sound communication, so plan members know what’s available.”
The convenience of digital access, he explained, has transformed how members use benefits.
“Post-pandemic, we’re seeing the people who potentially didn’t always access health care… using their benefit program now to access their healthcare needs,” he said.
Adams also noted an expanded definition of healthcare access, with services like virtual physiotherapy, online fitness classes, and yoga becoming common.
