Reasonable cost is the top reason cited by employees for buying voluntary products, according to Eastbridge’s MarketVision™- The Employee Viewpoint Spotlight™ Report, followed by the product filling a personal need. A large percentage of employees also listed the reputation of the carrier for service and claims payments, the convenience of payroll deduction and being able to purchase products at work. Around 80% of respondents rated filling gaps in primary medical coverage and having a well-known insurance company name as important.
In addition, a majority of respondents prefer to complete applications electronically in the future either on their own via the internet/intranet or through a computer with a sales rep or benefits counselor. This preference has increased for every employer size compared to the 2015 study. One-third still prefer to use paper in future enrollments.
Today, more employees enroll through the Internet than any other method. Almost half enrolled for benefits electronically through a website or mobile device. In fact, close to 70% of employees working for large employers (10,000+-employees) enrolled electronically. Around 25% of employees enrolled using paper, a percentage that has remained consistent for many years.
With various channels available to employees for insurance coverage purchase (e.g.: online directly from a carrier, through an exchange or through associations), it is crucial for brokers, employers and carriers to understand the employees’ perspective from many angles. This study uncovers the value of purchasing insurance products at the worksite from the employees’ perspective as well as their preferences for being introduced to and learning about voluntary benefits as well as carriers website functionality, to name a few.
MarketVision™—The Employee Viewpoint, a Spotlight™ Report
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.