source: Deft Research, LLC

Why Seniors Want to Switch?

The 2007 National Senior Loyalty Study measures seniors intention to switch their medical and drug insurance. This study, recently released by Deft Research, LLC, seeks to determine what differentiates companies with high switch intention rates from those with lower rates. People who are more likely to switch insurers are those who don’t feel like their companies are measuring up to their standards. This study helps identify what successful companies are doing right and how to get companies with high switch intention back on track.

source: Deft Research, LLC

More on this Top Line Result

Using the Net Promoter Score or NPS, the 2007 National Senior Loyalty Study measures the loyalty of seniors to their medical and drug insurance. This study, recently released by Deft Research, LLC, connects this measure of loyalty to loss of trust and attitudes about customer service. Those who are less likely to recommend their source of insurance are also less likely to believe that their insurance company is trustworthy and has high quality customer service. Findings like these can assist companies in policy changes, and giving direction to employees.

source: Deft Research, LLC

More on this Top Line Result

Deft’s 2007 National Senior Loyalty Study uses highly regarded metrics including the Net Promoter Score, or NPS to measure the loyalty of seniors to their drug coverage plans. Drug Coverage NPS for 2006 was 19%, while this year’s NPS is at -4%. This means that there are now a lower percentage of drug coverage promoters than drug coverage detractors. The study also covers how this lack of customer loyalty is related to seniors looking to switch their drug coverage plan.

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source: Deft Research, LLC

What is Behind this Trend?

Deft’s 2007 National Senior Loyalty Study uses highly regarded metrics including the Net Promoter Score, or NPS to measure the loyalty of seniors to their health plans and intention to switch plans. Deft’s 2006 and 2007 research shows connections between customer loyalty, intention to switch health plans and perception of market differences among these plans.

The 2007 study shows that more seniors are considering switching their health insurance plan than the previous year. This is true for many firms, but large firms seem to be especially affected. United Healthcare, Humana, Anthem and Aetna each have more than two times the amount of customers considering a switch that last year. This corresponds to Deft’s finding that customer loyalty has declined among many of these large firms as well as the industry as a whole.

For more on this study, review the Advance Prospectus

source: Deft Research, LLC

More on this Top Line Result

Declining drug coverage NPS, a measure of customer loyalty, is one of the key findings outlined in the current study. Drug Coverage NPS for 2006 was 19%, while this year’s NPS is at -4%. Many individual firms also saw large declines in this measure of loyalty. Most of these same firms, including United Healthcare, Humana, and Anthem, are each dealing with a NPS lower than the national average.