There is a drumbeat of change being heard in health insurance, signaling a drive towards greater choice and transparency, delivered through digital mediums. But in an industry not known for either transparency or technology, achieving this goal can be difficult for both carriers and consumers.

Before diving into the challenges and solutions this industry faces, it is worth exploring what is driving this shift towards choice and transparency. We see two key dynamics that have come together: consumer demand and plan proliferation and differentiation.

Consumers demand choice

Whether consumers receive insurance through their employers or not, they are demanding choice and transparency for a number of reasons. First, we are all paying more for our insurance: more for premiums, more out of pocket. And as we do so, we want to have a say in how and where our money is being spent. In the group environment, the wave of change is being fostered by a shift from a paternalistic approach to benefits (i.e., “this is what you need”), to offering a menu of options from which employees can build their own coverage packages.