In Eastbridge’s bi-annual survey of voluntary executives, only 12 percent of respondents said private exchanges are “extremely,” “very” or “important” to their voluntary sales efforts, down from 40 percent in 2015. Twenty-seven (27) percent believe exchanges are “somewhat important.” The majority (61 percent) stated that private exchanges are “not very important” in their voluntary sales efforts, a significant increase from 36 percent in 2015.
“According to voluntary executives, private exchanges are far less impactful than predicted by its proponents, although that could change,” says Gil Lowerre, Eastbridge president. “To date, an increasing number of executives see exchanges as more marketing and promotional tools rather than any kind of revolution in the industry’s basic approach to voluntary benefit delivery,” adds Lowerre.
When asked about the future importance of private exchanges, most believe that it will be “about the same” (45 percent) or “not as important” (12 percent). Again this is in stark contrast to the 61 percent in 2015 who indicated that private exchanges would be “much more” or “more important” in the future.
While private exchanges have a questionable impact on voluntary today and in the future, more executives surveyed believe that defined contribution benefit plan models will be more important. Thirty (30) percent feel they will be “much more” or “more important,” while another 33 percent believe defined contribution plans will be “a little more important.”
The Voluntary/Worksite Marketing: An Executive Perspective Frontline™ Report tracks the executives’ thoughts and insights on the obstacles facing the industry today as well as what they might expect for the future. The survey also explores the executives’ opinions on other topics based on market trends. The first survey was conducted in 2003, and subsequent surveys have been conducted every two years. This year’s report summarizes the responses from 33 key executives and, where appropriate, notes any trends or changes from the last study’s findings.
Voluntary/Worksite Marketing: An Executive Perspective, a Frontline™ Report
Eastbridge Information Partners as well as survey participants receive the Frontline™ Report free of charge. For more information regarding the Information Partner program or about Eastbridge reports, email the company at email@example.com or call (860) 676-9633.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.