Digital platforms and streamlined enrollment
and education continue to move the employee benefits market forward
By Lori Widmer
It’s no secret that the last four years have marked seismic changes in how and from where businesses operate. As employers work out how to attract talent, they’re trying to find ways beyond hybrid work arrangements. In doing so, they’re turning to employee benefits.
That appears to be a solid strategy. An Indeed.com survey shows that 34% of today’s job seekers are looking for better benefits. Fortunately, the insurance industry has already gotten the memo.
That translates into plenty of market competition, says Kevin Cranston, head of product development for Reliance Matrix. Cranston, whose team manages Reliance Matrix’s supplemental health products such as critical illness, hospital indemnity, and accident insurance, along with their life, disability and absence offerings, says that there are many carriers trying to differentiate themselves in the market through product enhancements and plan designs.
Employers, he says, are driving the change. “There are different plan designs that carriers are coming out with, whether it’s to attract employees or help retain talent. Employers want to have a more comprehensive offering.”
Tech at the forefront
That includes how each benefit experience is delivered, say the experts. “The most noteworthy trends in the voluntary/worksite market are digitizing the client and member experience, seamless connections with third-party quoting, enrollment and administration platforms, automation and integration that creates client value, particularly in claims, and regulatory actions driving changes to our products,” says Bryan Burke, associate vice president of voluntary benefits for Sun Life U.S.
In fact, Cranston says that technology has become a big part of the benefits landscape. He says that carriers are teaming with tech partners to ease the enrollment process, but it’s also giving them more insight into how to facilitate better benefits participation and employee engagement. Partners are helping carriers home in on critical questions. “How are you educating employees? Do you have access to any benefits, any decision support guidance through the enrollment time?”
Likewise, Cranston points out, carriers are digitizing the claim process. Claims integration is a key trend, he says, with carriers trying to identify and process claims more efficiently, especially for disability and supplemental health coverages. They’re considering scenarios such as, “If an employee files for disability, are you also looking to see if they would be qualified for one of their other coverages, as well?”
That type of integration is where Burke says carriers’ focus tends to be at the moment. “Most product development efforts are focused on enhancements to further enable automation and integration, as well as expanding covered benefits to include features that support mental health, caregiver support and women’s health, specifically fertility.”
New product changes, Burke says, are being driven by regulatory changes “now more than ever.” Still, product development is laser-focused on how to remain competitive. “From a competitive perspective, many carriers are focusing on their value proposition and aligning product development efforts with that,” says Burke. “Some of the most common strategic themes are digitization, healthcare access and affordability, and financial and overall wellness.”
A crowded field
In fact, digitization stands out as the primary concentration for many carriers, says Cranston. “While everyone’s trying to stand out, there’s that other piece—what does the customer journey look like? The products that an employee is interested in, is it easy to enroll and are they getting any support during enrollment?” Employers, with help from their carrier partner, he says, need to provide a seamless customer journey from enrollment to claim processing to ensure employees benefit fully from their coverage options.
“There are different plan designs that carriers are coming out with, whether it’s to attract employees or help retain talent. Employers want to have a more comprehensive offering.”
—Kevin Cranston
Head, Product Development
Reliance Matrix
The focus shift from new products to differentiators and enhancements, Cranston adds, is due to a crowded market. “Carriers are looking to differentiate themselves,” he says, “and provide quality customer service, a good claims experience.” He says that other coverages, such as a strong disability plan or ways in which the company can outsource its absence management program is always attractive to employers.
The voluntary and worksite benefits arena will continue to be one that attracts competition, say the experts, because claims tend to remain predictable. “Claims drivers are very consistent with overall health trends for Americans,” says Burke. “Preventative health and accidental injuries have the highest incidence rates while chronic disease such as cancer and circulatory diseases, and inpatient treatments have the biggest financial impact on members.”
Yet, getting employees interested in putting down their own money for such products is a struggle. The cost of coverage, says Cranston, is a deterrent for some consumers when they’re also enrolling for other coverages such as medical, dental, and vision. Since most supplemental health products are paid by the employee, Cranston says there is a conscious level of price shopping happening during enrollment.
“There are some situations where employers do help cover some of the cost of these products but, traditionally, the critical illness and hospital indemnity plans and accident plans tend to be 100% employee paid.”
But those voluntary coverages could be essential for some employees, says Burke. Those who purchase voluntary coverage options are often in their forties and are taking care of children and possibly aging parents at the same time, he says. That’s a key point for agents and brokers to understand.
“Specific to voluntary benefits, it is important to balance high expenses associated with distribution in addition to insurtech, enrollment, and administration platform connectivity, with the value the products are providing consumers.”
—Bryan Burke
Associate Vice President, Voluntary Benefits
Sun Life U.S.
“To best address these issues, it is important to help prospective clients understand the risk and individualize the need for voluntary products,” Burke says. “Benefits are not a ‘one size fits all’ and we don’t believe in advocating that consumers buy products they have a low likelihood of using. Focus on how these products fit into their lives and how they can help protect themselves and their families from the risk of unexpected accidents and illnesses that in some cases can be life changing.”
Burke says that employers may be inclined to shop on price, too, but should be encouraged to consider the value that comes with the package, especially if it’s one that comes in at a higher price. “Specific to voluntary benefits, it is important to balance high expenses associated with distribution in addition to insurtech, enrollment, and administration platform connectivity, with the value the products are providing consumers.”
He recommends that agents and brokers encourage clients to “balance low cost with adding new benefits that result in higher payouts for members to drive utilization and value.”
Advice for agents and brokers
That encouragement starts with agents and brokers understanding what the offerings are and how they apply to the employer’s employee demographic. “Be educated and understand how the products work,” says Burke. “There are many firms that have specialized sellers that know these products in depth and understand the demographics of typical buyers and who are most likely to utilize the benefits.”
The more agents and brokers know about the products they’re selling, says Cranston, the more trust they build with potential clients. “From an employer perspective, the key is to partner with a broker and carrier partner that really understand this market and that can put a plan in place to help not only educate employees up front, but then make the enrollment experience easy,” says Cranston. “Then have the reassurance that if employees have a claim, they will get a claim payment. They will have coverage.”
Cranston also says that the right carrier partner will have the technology in place to facilitate a better employee engagement experience from enrollment and throughout the policy period. He advises agents and brokers to look for a carrier who understands the market and offers comprehensive plans that include innovative ways to engage with benefits, and an educational element that can improve employee use of benefits.
Delivering that experience on both the employer and employee side is imperative to the success of any voluntary or worksite benefits program. “The client experience is now just as much, if not more important than the benefits themselves,” says Burke. “Focus on offering the easy button to clients to ensure you are working with partners that are on the forefront of digital, automated and integrated experiences.”
For more information:
Reliance Matrix
Reliancematrix.com
Sun Life U.S.
Sunlife.com/us
The author
Lori Widmer is a Philadelphia-based writer and editor who specializes in insurance and risk management.
