Research from the Health Insurance Authority (HIA) showing that most Irish consumers with private health cover have never switched either provider or plan was as depressing as it was unsurprising.
Many of those who choose not to switch do so out of a misguided sense of loyalty, fear of making a mistake or inertia. As a result they are missing out on savings amounting to hundreds of euro per person a year. The insurance providers are only too happy to take all the extra cash they have done so little to deserve.
Our eternal reluctance to shop around for the best value for money comes despite prices soaring in recent years with many people who once had cover being forced to let it go for affordability reasons.
So what is going on and why are we wasting money?
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According to the HIA’s new report, the lack of switching activity is a reflection of “the complexity of the market and the challenges consumers face in comparing plans”.
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There is certainly truth to that: there are hundreds of plans to choose from and it is understandable that many people fear the consequences of making mistakes which could leave them without the cover they need when they need it.
But there is more to it than complexity. Put simply, we are not a nation of switchers even when the decisions are pretty simple.
Consumers who change their gas and energy providers annually can easily save themselves hundreds of euro each year even in this era of rising prices and market volatility.
However, far less than half the market ever even considers switching utility company despite the simplicity of switching, meaning more than one million households are overpaying for energy every year with the cumulative waste running to hundreds of millions of euro annually.
The HIA’s new price comparison tool should help some people make better decisions but, ultimately, consumers will have to act and take control of their own finances.
And people must act. We can’t complain about the higher cost of health insurance if we are unwilling to do everything we can to mitigate what the companies are doing to us.
