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NORVAX REVEALS THE FACE OF THE ONLINE HEALTH INSURANCE SHOPPER
Twenty-something Females and Baby Boomers are Key Segments Data Analysis Includes Almost Half a Million Online Shoppers
CHICAGO (October 7, 2008) - It's official: even major carriers acknowledge that the group health insurance market is shrinking. In contrast, the individual market has exploded to $115 billion a year, as more and more Americans take on the responsibility of purchasing their own health insurance.
To find out who's online shopping for health insurance, Norvax, the nation's leading online health insurance technology company, recently completed an analysis of nearly half a million people who have requested a health insurance quote or to be contacted about health insurance. The findings provide insights for policymakers and consumers, as well as agents and insurance carriers looking to capture a share of this emerging market.
Representatives from Aetna, Assurant, Humana One, IAC and Life Secure, Warner Pacific's five key carrier partners, will kick off the symposium with brief presentations on their program and technology updates designed to increase broker production.
"While there is a growing number of people looking for insurance online, we see that only about 5-10 percent are really confident enough to complete the purchase online," said Clint Jones, CEO of Norvax. "The remaining 90-plus percent want guidance. That's where the important role of brokers and agents comes in. They are the trusted advisers to whom consumers can turn to get the advice and counsel they need to select the best plan for their situation."
Since 2001, Norvax has been the expert resource for brokers, carriers and consumers to benefit from the online insurance marketplace. To answer the needs of consumers seeking easy and affordable access to individual health insurance, Norvax launched an online shopping site, GoHealthInsurance.com, which offers side-by-side plan comparisons from more than 70 carriers, plus live access to a network of more than 10,000 experienced agents who can assist customers in finding the insurance plan best suited for their individual needs.
Norvax's study analyzed data from more than 446,500 online insurance shoppers who voluntarily requested a quote or contact from insurance agents between June - August, 2008. The data was analyzed for trends in five different categories: geography, current insurance status, insurability, gender and age.
"Norvax's findings illuminate who the individual insurance shopper really is," said Farren Ross, Vice President of Education at the National Association of Health Underwriters. "It is a wake-up call that the insurance market of the future is going to be individuals and they are going to use the Internet to find the right plan for them."
Ross noted that the study findings demonstrate how technology can be leveraged to help the agent, who continues to provide the personal tie to customers. "This study provides a clearer insight on the current dynamics and expanding role of the agent who in turn identifies the uninsured, those who are currently insured with inadequate policies, and consumers shopping for competitive rates."
Study Findings
The study reveals a clear gender gap in the online health insurance marketplace. Women in their 20s and 30s are leading the trend of buying individual health insurance coverage online. But overall, women tend to have lower rates of insurance coverage and are less likely to qualify for standard insurance.
A summary of findings by topics follows.
- Geography - The top 10 states accounted for half of the online shoppers in the entire study sample. They include: Florida, Texas, California, Pennsylvania, New York, Georgia, North Carolina, Washington, Ohio and Massachusetts. Regionally, more than 43% of the shoppers lived in the South.
- Current Insurance Status - One in five of online shoppers are currently insured, but are shopping for better options or preparing for the loss of their current plan.
- Insurability - One out of every six online shopper are deemed "uninsurable" for standard coverage, due to either a pre-existing condition or a BMI of 39 or higher. While these individuals could still obtain insurance, these two conditions will probably make it more difficult and more expensive.
- Gender - Almost 2/3 of online health insurance shoppers are women. Only 13% of them identified themselves as married-compared to more than 28% for male shoppers in the study.
- Age - More than 53% of the study group reported their ages as being between 20-49. More importantly, women in their 20s accounted for a third of all women in the study.
"The clear and emerging trend is toward online purchasing with three major segments dominating the market: women, seniors and the individuals with health issues," noted Brandon Cruz, President and CTO of Norvax. "If agents and carriers want to reach these audiences, online marketing is not an option: it is a necessity."
To view the full study, go to www.norvax.com/data_report_download.pdf.
"This study really validates the change I've seen in the insurance industry over the last few years. Clients prefer doing business over the Internet rather than spending 2-3 hours meeting face-to-face at the kitchen table," said Bob Brow, President of HealthQuotesUSA.com and a Norvax customer for five years.
"I've found that Norvax's technology and automated tools have freed up my time, and my customer's time, to do more volume," Brow added. "Also, since I now have a clearer picture of who my customer is and how they prefer to look for and receive information, I can tailor the way I conduct business to better serve my clients."
ABOUT NORVAX
Norvax Inc. is a leading developer of Web-based sales and customer communication tools that connect and help consumers, insurance brokers, agents and carriers transact health insurance business more efficiently. From tools for building lead-generating Websites to health insurance quote engines and email autoresponders that automatically include updated health insurance quotes, Norvax's health insurance technology lets agents increase sales, cut administrative time and reduce expenses by initiating customer contact faster and automatically maintaining around-the-clock communications with prospects. Founded in 2001, Norvax was named among the Top 10 fastest-growing software companies in the U.S. in 2007 by Inc Magazine. Norvax is privately held and headquartered in Chicago. For more information, visit www.Norvax.com.
