The small case market, defined as employers with between 10 and 99 employees, presents a sizeable opportunity for voluntary coverage as it encompasses over a quarter of all U.S. employees and over 90 percent of all U.S. employers. However, small case market employers are least likely to offer benefits on any funding basis as well as any voluntary benefits compared to larger employers. Only 53 percent of employers with 10-49 employees and 73 percent of employers with 50-99 employees offer at least one voluntary product. This compares to 78-87 percent of employers with 100 or more employees. The small employer segment continues to be ripe for introduction of new or additional voluntary coverage to fill unmet benefit needs.
Eastbridge’s Voluntary and the Small Case Market Spotlight™ Report aggregates data from several key surveys to produce an in-depth analysis of the small case market including the broker, carrier, employer and employee perspectives. The report looks at topics such as:
The study found, for example, that dental, vision, and long-term disability are the top voluntary products offered by employers, while the top products offered by brokers are short-term disability, accident, and term life. It also found that small case brokers use group meetings followed by one-on-one meetings as their most frequent enrollment method, and use of the Internet/web was infrequent, while employees said in the future they prefer to enroll on their own and give their paper application to HR to submit, followed by via the Internet/intranet.
Voluntary and the Small Case Market, a Spotlight™ Report
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.