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Growth in the Voluntary Benefits Market

According to a new report by Eastbridge Consulting Group, the voluntary benefits market has seen a remarkable surge in sales among brokers. The study, titled "Broker Perspectives on the Voluntary/Worksite Market," reveals that more than 50% of brokers reported higher sales in 2024 compared to the previous year. This growth indicates a robust demand for voluntary benefits, which includes a range of products that companies offer to their employees in addition to standard health insurance.

The report draws on data collected from a collaborative survey conducted together with Voluntary Advantage, a dedicated platform for the voluntary benefits industry, and insights from the NMG Insights Survey, which focused on brokers actively engaged in selling voluntary benefits. This dual-survey approach has provided a more comprehensive understanding of market dynamics and broker experiences.

Popular Products in the Voluntary Market

Among the various products sold, term life insurance, short-term disability, and accidental injury coverage topped the list of voluntary offerings. Additionally, items such as identity theft protection, pet insurance, and legal assistance emerged as popular non-traditional products that brokers are increasingly providing to clients. These findings signify a diversification in the types of coverage that brokers are willing to sell, responding to evolving employee needs.

Key Broker Concerns

However, it's not all smooth sailing in the voluntary benefits industry. Brokers outlined several significant challenges they face, with inflation being a major concern. Danielle Lehman, a senior consultant at Eastbridge, highlighted inflation as a pressing issue, but also noted concerns about the growing competition from a variety of new benefit offerings vying for employees' financial resources. Furthermore, the shift towards online self-service methods for benefits enrollment has resulted in reduced face-to-face interactions, complicating the process for brokers trying to reach all employees effectively.

Criteria for Selecting Carriers

The report also delves into the criteria brokers use when selecting carriers for voluntary products. More than half of the brokers surveyed indicated that claims integration capabilities are important, with 82% believing that medical claims integration could serve as a distinguishing factor for carriers. The top three considerations for brokers in selecting carriers include administrative services, product features, and claims management efficiency. These elements are critical as they inform brokers' decisions about which products to promote actively.

Enrollment Trends

In terms of enrollment processes, the report notes a significant trend toward online self-service platforms, with 72% of brokers having utilized these technologies to enroll employees in their benefits packages during the previous year. This shift highlights the increasing reliance on digital tools to both simplify the enrollment process for employers and enhance accessibility for employees.

Conclusion

The findings from Eastbridge's report underscore the evolving landscape of the voluntary benefits market, characterized by increasing sales, changing product dynamics, and an emphasis on technology in engagement and enrollment. As brokers adapt to new trends and challenges, understanding these dynamics will be vital in positioning themselves for continued success in this competitive environment.

About Eastbridge Consulting Group

Eastbridge Consulting Group is a research and consulting firm specializing in the voluntary/worksite benefits market in North America. Their insights help companies navigate the complexities of voluntary benefits, ensuring they can meet the diverse needs of the workforce. For more information about their findings and services, visit Eastbridge's website.