Horizon Media's Study "Injecting Change: Weighing the Future of Insurance in the Age of Ozempic" Gives a Prescription to Health Insurance Companies

Horizon Media, the largest U.S. media agency according to Ad Age Data Center 2023, today unveiled "Injecting Change: Weighing the Future of Insurance in the Age of Ozempic," a study of the challenges the growing popularity of GLP-1 agonists pose to the health insurance industry with strategies and recommendations to overcome them.

GLP-1 agonists are poised to upend the industry

NEW YORK, June 4, 2024 /PRNewswire-PRWeb/ -- Horizon Media, the largest U.S. media agency according to Ad Age Data Center 2023, today unveiled "Injecting Change: Weighing the Future of Insurance in the Age of Ozempic," a study of the challenges the growing popularity of GLP-1 agonists pose to the health insurance industry with strategies and recommendations to overcome them.

Over the last four years, GLP-1s (including Ozempic, Mounjaro, and Wegovy) have burst onto the scene, capturing the attention of a nation of dieters with the potential to impact several industries that cut across people's lives every day, from dining out to impulse shopping to nutritional supplements.

The study from Horizon Media's WHY Group, the agency's intelligence center of excellence, tackles the massive implications for the health insurance sector. The disruption has prompted three major challenges for insurers ? increased risk of churn, risk of losing young policyholders, and emerging policy risk:

? Risk of increased churn: 37% of those interested in GLP-1s have at least considered switching insurance companies in the past year ? up from 30% of people overall. An increase of 22%.

? Risk of losing young policyholders: Almost half (47%) of those 18-24 who are interested in these drugs say they'd consider leaving traditional insurance altogether for access to GLP-1s.

? New competitive risk: A wide range of innovators are stepping in to use this demand as doorways into their brands, and half of those interested in GLP-1s are open to a variety of non-traditional ways to get them, like med spas, membership services, and compounding pharmacies ? among those very interested, that goes up to 2/3.

In a nation with a complicated relationship to weight, the GLP-1 wave is huge and growing, with 64% of adults aware of brands in the category, and more than half (56%) at least somewhat interested in using them ? a figure ironically close to the percentage of Americans who regularly eat cookies.

According to the research, younger people (25-34) are more willing to switch their health insurance plans for access to GLP-1s based on new information they glean from influencers and personal research.

"For women in this age range, social media creators and personal research influence their GLP -1 decision process equally as much as family/friends and insurance providers," said Browning-Nance. "This exemplifies a trend we've been tracking since 2023."

This study offers five strategic levers for insurance providers to consider in addressing the challenges:

? Educate and influence above the noise and hype.

? Give people more personal support through the process.

? Offer flexibility for changing needs and help people pay.

? Focus on keeping young people in the fold.

? Identify and understand those most likely to jump ship from your plans or from traditional insurance altogether.

Insurance brands, typically offered through employers, often benefit from structural stability that ensures a steady customer base and reliable revenue streams. However, when new drugs become sought-after consumer brands, traditional insurance companies are often perceived as barriers restricting access to them.

It isn't all bad news for health insurers. Approximately half of all people under 64 years old would increase or upgrade their coverage to get GLP-1 coverage ? and that number goes up to 61% among 45?54-year-olds.

"People are willing to pay more for what they want," Browning-Nance said. "Insurance companies can ride this GLP-1 wave instead of falling into old patterns when previous disruptions presented challenges. Understanding the consumer sentiment and behaviors is the key to developing marketing strategies to overcome the challenges."

The "Injecting Change" series, starting with this study, will assess each sector's risks and opportunities and provide actionable steps to navigate this upheaval through research, media, and marketing.

The full study can be found here.

Methodology

In April of 2024, we surveyed 1,003 people, balanced to the U.S. general population by age, gender, region, and income. Cultural Intelligence was used to understand signals and trends related to GLP -1s, healthcare, and generational shifts, and Social Intelligence was used to understand current conversation themes and emotions. Throughout this report, external sources are cited through live hyperlinks; any stat not linked to an outside source comes from Horizon Media's proprietary data.

About Horizon Media

Horizon Media, Inc., the largest U.S. media agency according to Ad Age Data Center 2023, delivers data-driven business outcomes for some of the most innovative and ambitious brands. Founded in 1989, headquartered in New York, and with offices in Los Angeles and Toronto, the company employs 2,400 people and has media investments of more than $8.5 billion. Horizon Media's fundamental belief is that business is personal, which drives its approach to connecting brands with their customers and engaging with its own employees resulting in industry-leading workplace satisfaction levels (Glassdoor). The company is consistently recognized by independent media outlets for its client excellence and has earned several "Best Workplaces" awards reflecting its commitment to DEI and the life and well-being of everyone at Horizon Media.

Media Contact

Dan Prince, Prince Communications, 1 9176470086, [email protected]

SOURCE Horizon Media