Are your voluntary administrative practices up to par?

Bonnie Brazzell, Senior Vice President at Eastbridge Consulting Group (November 3, 2020)

Not too many years ago, employers were less demanding when it came to voluntary benefits administration. Many settled for less than ideal administrative services– often because they didn’t know better alternatives existed. Today, employers are expecting more. They are more educated about the market and the types of services that are available. In our recent survey of employers:

Overall, 69% said that having online administrative services are important to them.

Of those, 27% said they would not do business with a carrier that does not offer these services and another

42% said not having the services would definitely make a difference in selecting a carrier.

Carriers are noticing employer’s increasing demands for voluntary administration too. In our 2019 Executive Perspective survey,

97% of the voluntary executives surveyed agreed that employers are expecting better administrative solutions and alternatives. And over half chose this as one of the most impactful market changes.

In addition, 62% of the respondents agreed that employers are becoming more sophisticated about voluntary.

Many carriers are looking to make changes to address these demands and that includes making changes to their policy administration systems. The percentage making changes has never been higher.

63% of respondents say they are making major changes and another 29% are making minor changes or tweaks.

So what are employers looking for? According to our research, some of the things they are looking for include:

  • Better billing solutions with fewer issues including online billing
  • Easier set up of voluntary products on enrollment and benefits administration systems
  • The ability for employees to have online access to details on the benefits they personally bought
  • The ability for employees to file claims and check the status online

How well do you understand the evolving expectations of employers? How do customers view your services? Are you easy to do business with? Do you adapt to what capabilities the employer has or do you expect them to do things your way? 

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