Personalization in Health Insurance: The Promise, the Pitfalls, and the Path Forward

As health insurers adopt AI and predictive analytics to create more personalized experiences, consumers are rethinking the nature of their relationships with these institutions. Today’s health insurance customer is no longer a passive recipient of care or benefits; they’re a digitally savvy participant who expects plans, communications, and services to be tailored to their needs while also respecting their privacy and autonomy. 

In June 2025, Data Axle partnered with Dynata, the world’s largest first-party data company, to survey 1,000 U.S. adults about their expectations and comfort levels with data use and personalization in healthcare. The findings reveal a growing demand for relevance and individualization—but with clear guardrails around trust, transparency, and control. 

Let’s unpack what modern consumers want from their insurers and how health insurance organizations can bridge the gap between the promise of personalization and reality. 

Personalization Is Expected, But Execution Matters

Health insurers are under increasing pressure to modernize their member experience. From app interfaces to care coordination, policyholders expect a seamless journey—one that feels connected, smart, and relevant. According to the survey, 56% of consumers expect their insurer to already be using their health data to deliver fully personalized care. That number jumps to 64% for Millennials, the most digitally engaged demographic. 

Furthermore, 88% of respondents said it would be valuable to have a single, secure platform where all their health and insurance claims, coverage, medical history could be accessed and shared with providers. 

However, only 29% of consumers say they’re “very confident” their insurer has accurate and up-to-date records. The gap between expectation and execution is apparent—and it’s widening. 

Implications for Insurers: 

Personalization is no longer a competitive advantage; it’s the new standard. Yet many organizations are still struggling with fragmented data systems and outdated infrastructure. 

At the heart of this disconnect is data integrity. Insurers must unify, clean, and operationalize their data across touchpoints to deliver the personalized experiences consumers now expect. Data Axle’s Identity Spine, built on ethically sourced, verified, and permissioned data, provides a 360-degree view of individuals that enables precision, consistency, and contextual relevance. 

Personalization Comes with Boundaries

Consumers are generally open to data-driven experiences—especially if it means smarter recommendations and more relevant benefits. But they are also drawing clear lines about what types of data they’re willing to share. 

Comfort with Data Types: 

  • 80% are comfortable sharing health and medical data (e.g., prescriptions, lab results) 
  • 68% are comfortable with insurance and employment data (e.g., HSA usage) 
  • 65% are comfortable with lifestyle and behavior data (e.g., fitness trackers, habits) 
  • 62% are comfortable with digital interaction data (e.g., website/app usage, call center history) 

However, when asked if they’d be willing to share more data for better recommendations, only 26% said they were “very likely” to do so. An additional 40% said they’d consider it—if transparency and security were strong. 

Generational Trends: 

Millennials (38%) and Gen Z (32%) are far more open to deeper data sharing, while Boomers (14%) remain cautious. 

What This Means: 

The willingness to share personal information depends less on the amount of data collected and more on how it is used, who controls it, and the clarity of communication surrounding it. 

Consumers want: 

  • Clear benefits in exchange for their data 
  • Confidence that their information won’t be misused 
  • Options to manage how their data is shared and with whom 

For data partners like Data Axle, this represents a clear opportunity: empower insurers to personalize responsibly by providing transparent, consent-based data practices and secure data infrastructure. 

Data Fragmentation Remains a Friction Point

Despite the push toward digital transformation, data fragmentation continues to erode trust in the member experience. 

More than half (51%) of respondents reported inconsistencies in how their information is handled across channels (website, app, mail, call center). Millennials and Gen Z noticed the most disjointed experiences, with 61% and 60% respectively citing issues. 

Only 34% of consumers feel their insurer’s data is well-connected and accurate. 

The Consequences: 

  • Broken communication threads 
  • Redundant or conflicting information 
  • Poor customer service experiences 
  • Decreased trust in digital systems 

The Opportunity: 

A cohesive data strategy is not just a backend problem—it directly impacts consumer satisfaction and brand loyalty. 

By eliminating data silos and stitching together first-party, behavioral, and third-party data through a unified identity spine, insurers can meet consumers where they are and deliver consistently personalized experiences. 

This is where Data Axle’s core competency shines: transforming disparate data into integrated intelligence that supports smarter engagement. 

Control Is the New Currency

Personalization without control quickly becomes invasive. When asked who should own and manage their complete health insurance profile, half of respondents (50%) said they should. Only 14% said insurers should. 

Notably, this desire for self-ownership is strongest among Boomers (58%) and Gen X (56%)—groups typically portrayed as less digitally engaged. Even among Gen Z, nearly 40% wanted full control. 

Takeaway: 

Consumers want personalization—but on their terms. They expect: 

  • Access: to view and manage their data 
  • Autonomy: to set preferences and permissions 
  • Accountability: to know how their data is being used 

For insurers, this means rethinking user interfaces and consent flows to prioritize clarity and ease. Data Axle’s focus on permissioned data, along with solutions that enable real-time preference and consent management, positions it as a trusted partner in delivering this level of consumer empowerment. 

The Generational Divide: One Size Doesn’t Fit All

One of the most nuanced insights from the survey is that expectations around personalization vary significantly by generation. 

Millennials and Gen Z: 

  • Highly digital 
  • Open to AI and automation 
  • Willing to share data—if there’s a clear benefit 
  • Expect seamless, intuitive digital experiences 

Boomers and Gen X: 

  • Privacy-focused 
  • Cautious about AI and data sharing 
  • Want clarity, simplicity, and control 
  • Prefer consistency across traditional and digital channels 

For insurers, this creates a personalization paradox: how do you scale relevance while honoring individual preferences? 

The Answer: 

Segment your personalization strategies. Use generational insights as a foundation, then layer in behavioral, contextual, and professional data to fine-tune outreach and service. 

Data Axle enables this kind of intelligent personalization by combining high-resolution data signals with ethical sourcing and platform flexibility. The result? Engagement that’s relevant, respectful, and responsive to each customer segment. 

AI in Healthcare Insurance: Hope Meets Hesitation

Artificial intelligence has the potential to revolutionize health insurance, from personalized plan recommendations to fraud detection and predictive care. But while consumers see the value, trust remains fragile. 

Key Stats: 

  • Only 18% of consumers are very comfortable with insurers using AI 
  • 30% of Millennials and 23% of Gen Z express high comfort 
  • 76% worry AI could make unfair or inaccurate decisions if trained on bad data 

What Would Increase Trust in AI: 

  • 48% want clear explanations of how AI works 
  • 48% expect human oversight on AI-driven decisions 
  • 46% want strong privacy and security protections 
  • 44% want the ability to opt out of AI systems 

What This Means: 

Consumers aren’t rejecting AI, they’re demanding transparency, fairness, and control. They want the convenience of automation without the risk of dehumanization. 

Insurers must ensure that AI systems are explainable, auditable, and supervised by humans. They must also address concerns about bias and error by investing in high-quality, comprehensive data. 

Data Axle’s commitment to data accuracy and transparency directly supports the ethical use of AI, helping insurers reduce risk and build trust while accelerating innovation. 

Toward a Trusted Personalization Model: The Way Forward

This survey reveals a dynamic consumer landscape, one where the appetite for personalization is high, but so is the demand for accountability. Health insurers must walk a tightrope: innovating with technology while staying rooted in respect for individual boundaries. 

To bridge the gap between consumer expectations and industry capabilities, insurers must: 

  1. Unify Disconnected Data

Build a trusted identity spine that integrates demographic, behavioral, and professional data into a single profile. Break down internal silos to ensure consistency across all channels and interactions. 

  1. Elevate Transparency and Control

Empower consumers with clear, accessible tools to view, manage, and consent to data use. Personalization should never feel like surveillance; it should feel like service. 

  1. Tailor Experiences Across Generations

Don’t generalize. Develop personalized strategies that cater to generational differences in comfort, communication preferences, and digital literacy. 

  1. Implement AI Responsibly

Use AI to enhance—not replace—the member experience. Prioritize explainability, human oversight, and opt-out options. Root decisions in credible data to mitigate risk and build confidence. 

  1. Position Data as a Value Exchange

Consumers are open to sharing their information, but only when the benefits are clear and the relationship is rooted in trust. Show how data improves outcomes, simplifies experiences, and drives value. 

Case Study: Personalization in Practice: Driving Acquisition Through Localized Messaging

A recent report found that 93% of companies that outperform their revenue goals have one thing in common: a documented personalization strategy. While personalization is often associated with retail and ecommerce, it’s proving just as powerful in industries like insurance—where relevance, trust, and timing are key to engaging consumers. 

Take, for example, a leading U.S. health insurer that wanted to improve acquisition by delivering more relevant advertising to potential policyholders. The challenge? Consumers were routinely served ads for plans they didn’t qualify for or that weren’t available in their area—resulting in wasted impressions and missed opportunities. 

To solve this, the insurer partnered with Data Axle to create a highly personalized, geo-targeted acquisition campaign. By layering first- and third-party data, the campaign combined geographic insights with key audience attributes such as age, occupation, and life stage. This enabled the insurer to tailor messaging and plan offerings to what was truly relevant for each audience segment—based on where they lived and what coverage options were available to them locally. 

The impact was significant: personalized, geo-targeted ads generated a 4% to 8.2% lift in acquisition rates across various target segments. This approach not only improved marketing efficiency but also created a better experience for consumers—one that felt more useful, timely, and trustworthy. [Read the full case study here] 

Conclusion: A New Era of Empowered Personalization

The future of health insurance personalization lies not in collecting more data, but in using it more thoughtfully. Consumers want to be seen—but they also want to be heard. They want technology that works for them—not on them. 

For insurers, this moment presents both a challenge and an opportunity. Those who lead with empathy, transparency, and integrity will earn more than compliance will earn loyalty. 

At Data Axle, we believe the future of personalization is built on ethical, high-quality data and consumer intelligence that respects individual preferences. As this survey shows, it’s not just about being data-driven; it’s about being people-first. Get in touch to learn more.  

Courtney Black
Courtney Black
Senior Public Relations Manager

Courtney is a seasoned communications and public relations professional with 17+ years of experience working in both the public and private sectors in diverse leadership roles. As Data Axle’s Senior Public Relations Manager, she is intently focused on elevating the company’s media relations presence and increasing brand loyalty and awareness through landing coverage in top-tier media outlets.