Also in this issue:
Employees React to Economic Downturn
Summer Quiz
Update on Eastbridge Consulting Statistics
Spring Quiz Answer
PASS Provides Important Feedback
Eastbridge Recognizes CIGNA and Wellpoint as the 2010 Voluntary Sales Growth Leaders
The Spin
The Two Enemies of Success
Eastbridge Frontline Report Gives Insights into Executive Viewpoints on Voluntarys
The Country’s Largest Brokers are Becoming More Active in Voluntary
It’s Been a Busy Year
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Employees React to Economic Downturn
To succeed in the voluntary market, carriers and producers need to understand what employees think about voluntary, what they want, and what they need. That’s the goal of the study MarketVision™—The Employee Viewpoint 2010. Based on telephone interviews conducted with over 700 employees nationwide in October and November of 2010, the study shows that employees have made some significant changes since our 2006 study.
First, the study found that the importance of various types of coverage has shifted. Employees report that key coverages like medical, drug, dental and vision are more important than ever. This priority shift is balanced by the reduced importance of all other coverages. The overall ownership rates (regardless of funding) are down for all but these “priority” coverages. As examples, overall ownership of life, cancer, critical illness, and hospital indemnity plans showed decreases. The changes are not huge but mirror the idea that employees are focusing on priority coverages.
Second, voluntary ownership has dropped, driven by economic realities. The lower rate of ownership is slightly offset by the tendency of owners to purchase more policies than in the past. In fact, the percentage of those owning more than one voluntary product increased by ten percentage points since 2006. Additionally, the workplace continues to be the source of most employees’ insurance products. Even with a lower percentage owning a voluntary product, less than one-quarter of those surveyed said they own insurance products (other than auto or homeowners’ insurance) that were purchased outside of their or their spouse’s employment.
One item that has not changed is the importance of choice in benefits. However, in reacting to tighter budgets, employees are uncertain if they would be willing to pay more for their benefits in order to get more choice.
Clearly employees and their decision-making regarding voluntary has been under pressure over the last few years. We will be conducting another employee study late this year/early next to see if there are any signs of improvement.
The MarketVision™—The Employee Viewpoint 2010 report is available for purchase; for more information click here.
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