Trust: A Tricky Yet Potentially Transforming Metric

Research shows that consumer trust has fallen in many industries. In the health insurance industry, declining trust can be a challenge that impacts member satisfaction and loyalty, ultimately influencing a carrier’s bottom line. However, there are strategies that health insurance carriers can leverage to earn trust – and they usually start with a strong technological foundation.

The Startling Decline in Consumer Trust

According to a recent Forrester Report, only 56% of consumers trust their health plan to act in their best interest. This low figure may be alarming – and it certainly signals the need for new strategies – but this is not purely a health insurance problem.

Consumer trust has been falling across industries. Qualtrics XM Institute says consumer trust plummeted to 45% in 2020 during the COVID-19 pandemic and has not recovered to pre-pandemic levels. In 2023, only 50% of consumers said they trusted the organizations they did business with to meet their needs. Among Gen Z consumers, trust levels are even lower, with just 28% reporting that they trust the organizations to meet their needs.

The 2025 Edelman Trust Barometer also points to low trust levels – not just for businesses, but for government agencies as well. The report shows that 61% of people hold grievances against businesses and the government and higher grievance levels are linked to lower levels of trust in business leaders.

The Impact of Trust on the Bottom Line

Trust is a tricky metric, but it has real-world implications. According to PwC, 93% of business executives agree and 49% strongly agree that a company’s ability to build and maintain trust improves its bottom line. At the same time, many business leaders overestimate how much trust consumers have in their companies: 90% of business executives think customers highly trust their companies, but only 30% of consumers actually do.

For health insurance carriers, a lack of consumer trust could materialize in many ways. Perhaps most obviously, individual members may decide to switch carriers. If you don’t trust that a carrier is acting in your best interests, you have little reason to be loyal. Any price difference, no matter how small, could be enough to prompt shopping.

There may be other manifestations of distrust, as well. For example, consumers who don’t trust a health insurance provider may be more likely to dispute decisions, which may result in higher administrative costs. On a larger scale, an overarching lack of industry trust may lead to increased regulations that restrict carriers and make it harder to operate efficiently.

How Can Health Insurance Companies Earn Consumer Trust?

If a lack of consumer trust is the problem, what is the solution? Since this is a multifaceted issue, there’s not a single cure. However, the Forrester report highlights multiple strategies that may be successful: from focusing on plan designs that ease barriers to care, to investing in digital tools for seniors and prioritizing cybersecurity. Personalization that allows members to opt into digital programs that meet their needs could also help boost satisfaction without resulting in excessive additional costs.

Does Your Technology Set You Up for Success?

Smart technology is at the heart of many of the issues impacting trust. A poor technology platform may lead to delays, create frustration, hinder communication, or leave members vulnerable to cybersecurity breaches. An efficient technology platform connects multiple systems to provide a seamless user experience, supports quick decisions, facilitates member self-service, delivers clear information, and builds consumer confidence with each interaction.

For carriers exploring ways to bolster trust, it may be smart to start with the following questions:

Does your technology keep your members’ information secure?

Is your plan management system efficient enough to facilitate fast decision-making?

Can your technology platform integrate with apps to deliver modern mobile and self-service experiences that boost engagement and facilitate communication?