In an era where customer loyalty drives business success, the Net Promoter Score (NPS) has become a key metric for gauging how likely customers are to recommend a company to others. NPS is calculated by subtracting the percentage of detractors (those scoring 0-6 on a 0-10 scale) from the percentage of promoters (those scoring 9-10), resulting in a score ranging from -100 to 100. For industries like health insurance, where trust and reliability are paramount, a strong NPS reflects positive experiences with claims processing, customer service, and overall value. Unfortunately, the largest U.S. health insurance companies often fall short in this area, posting NPS scores that lag far behind consumer favorites in other sectors. This post explores these low scores, compares them to high-performing brands, and contrasts them with a standout provider like Philadelphia Life and Health, which boasts an impressively high NPS.
Understanding NPS in Health Insurance
Health insurance is a high-stakes industry. Customers rely on their providers not just for financial protection but for peace of mind during life’s most vulnerable moments—illnesses, accidents, and emergencies. NPS captures this sentiment by asking a simple question: “On a scale of 0-10, how likely are you to recommend our services to a friend or colleague?” A high score indicates strong loyalty, while a low one signals dissatisfaction, often stemming from issues like denied claims, confusing policies, poor customer support, or rising premiums.
According to industry benchmarks, the average NPS for health insurance in the U.S. hovers around 29-46, depending on the source and year. This is notably lower than the global average across all industries, which tends to be in the 30-50 range. Factors like regulatory complexities, frequent interactions during stressful times, and the commoditized nature of plans contribute to these middling scores. But for the largest players—companies handling millions of customers—the numbers are even more concerning.
NPS Scores of the Largest U.S. Health Insurance Companies
The “Big Five” health insurers—UnitedHealth Group, Anthem (now Elevance Health), Centene Corporation, Humana, and Cigna—dominate the market, covering tens of millions of Americans. Yet their NPS scores reveal widespread customer frustration.
– UnitedHealth Group**: As the largest U.S. health insurer by revenue, UnitedHealth serves over 70 million people. Its NPS stands at -12, with 37% promoters, 14% passives, and 49% detractors. Common complaints include slow claims processing and inadequate coverage explanations, leading to a perception of bureaucracy over empathy.
– Anthem (Elevance Health)**: With about 45 million members, Anthem’s NPS is 28, driven by 57% promoters but offset by 29% detractors. While better than some peers, this score reflects mixed experiences, particularly around network restrictions and premium hikes.
– Centene Corporation**: Focusing on Medicaid and Medicare plans for lower-income populations, Centene has an NPS of -6, with 40% promoters and 46% detractors. Detractors often cite poor customer service and delays in approvals, exacerbating vulnerabilities for underserved communities.
– Humana**: Humana, known for its Medicare Advantage plans, fares slightly better among competitors, often ranking higher in comparative analyses. While exact recent figures vary, it typically outperforms UnitedHealth, with scores in the positive range (around 20-30 based on industry benchmarks).
– Cigna**: Cigna’s NPS is -8, with 39% promoters and 47% detractors. Issues like claim denials and limited mental health coverage contribute to this negative sentiment.
These scores are from customer reviews on platforms like Comparably, where users rate based on real experiences. In aggregate, the health insurance sector’s NPS declined in 2023, with Forrester reporting drops for many providers due to lost gains in promoter percentages. Economic pressures, such as inflation-driven premium increases, and post-pandemic service disruptions have compounded these challenges.
Comparing to High-NPS Consumer Brands
To put these figures in perspective, consider how health insurers stack up against beloved consumer brands. High-NPS companies excel in delivering seamless, enjoyable experiences that foster loyalty and word-of-mouth promotion.
– Apple: With an NPS around 72, Apple thrives on innovative products and exceptional customer support. Customers rave about intuitive devices and helpful Genius Bar services—contrasting sharply with the frustration of navigating health insurance claims.
– Tesla: Boasting an NPS of 96-97, Tesla benefits from its cult-like following, driven by cutting-edge electric vehicles and Elon Musk’s vision. Owners feel part of a movement toward sustainability, unlike health insurance customers who often feel like just another policy number.
– Costco: At 78-80, Costco’s NPS stems from value-packed memberships, generous return policies, and friendly staff. This bulk-buying giant makes shopping feel rewarding, while health insurers frequently leave customers feeling overcharged and underserved.
– Amazon: With an NPS of 60-70, Amazon’s convenience—fast shipping, easy returns, and vast selection—keeps customers coming back.
– Netflix: Scoring 50-64, Netflix delights with personalized recommendations and binge-worthy content.
These brands average NPS scores in the 60-90 range, far surpassing health insurance’s 29-46 average. The difference? They prioritize delight and simplicity, while health insurers grapple with regulatory hurdles, complex policies, and infrequent but high-stress interactions. As one benchmark study notes, consumer electronics and retail consistently outperform insurance due to emotional connections and consistent quality.
Why Do Large Health Insurers Struggle with NPS?
Several systemic issues contribute to these low scores:
1. Claims Denials and Delays: A staggering 18-20% of claims are denied annually, eroding trust. Customers feel insurers prioritize profits over care.
2. Complexity and Transparency: Jargon-filled policies and hidden fees frustrate users, leading to passives and detractors.
3. Customer Service Gaps: Long wait times and scripted responses contrast with the personalized touch of high-NPS brands.
4. Scale Challenges: Mega-insurers like UnitedHealth manage vast volumes, diluting individual attention.
5. Economic Pressures: Rising premiums amid inflation push NPS down, as seen in 2023 declines.
Studies show that “policy peace of mind” and “painless claims” are top NPS drivers in health insurance. Large companies often falter here, while nimble providers like PHLY excel.
Strategies for Improvement
To boost NPS, large insurers could:
– Streamline Claims: Invest in AI for faster processing, reducing denials.
– Enhance Digital Experiences: User-friendly apps for policy management, mimicking Amazon’s ease.
– Personalize Interactions: Use data for tailored advice, building emotional connections like Apple.
– Gather Continuous Feedback: Beyond NPS, analyze open-ended responses to address root causes.
– Benchmark Internally: Track scores over time, aiming for incremental gains.
Conclusion: Toward a Healthier NPS Landscape
The low NPS scores of major U.S. health insurers highlight a critical gap in customer satisfaction, especially when compared to high-flying brands like Apple (72) or Tesla (96). While giants like UnitedHealth (-12), Anthem (28), and Centene (-6) struggle with scale and complexity, providers like Philadelphia Life and Health (76) demonstrate that excellence is achievable through focused, customer-first strategies. As the industry evolves—driven by regulations, technology, and consumer demands—improving NPS isn’t just about numbers; it’s about rebuilding trust. Insurers that prioritize seamless experiences will not only retain customers but thrive in a competitive market. If your health insurer’s score leaves you wanting more, consider switching to a high-NPS provider—your peace of mind depends on it.