Small employers represent 91% of all U.S. businesses and employ almost 30 million employees. Not only does the size of this market indicate opportunity, but it also has significant potential in terms of unmet benefit needs. Small employers continue to be less likely to offer many benefits on any basis (employer-funded, shared cost, employee-funded), and 57% of employers with 10-49 employees and almost 75% with 50-99 employees offer at least one voluntary product. This compares to 80-90% of large employers. From the employee perspective, even though the voluntary product ownership percentages of employees working for small employers is lower than those working for large employers, employees express interest in purchasing a variety of products on a voluntary basis.
Eastbridge’s Voluntary and the Small Case Market Spotlight™ Report aggregates research from key perspectives - of employers, employees, carriers, and brokers – to provide in-depth analysis of the small case market. It covers the size of the small employer market; differences in employee attitudes or ownership; employer preferences that impact carrier selection; products sold; top carriers, and opinions of brokers who focus on the small case market. The study found, for example, that small employer expectations for voluntary benefit enrollment and administration are becoming similar to large employers’. Almost a quarter of small employers say they will not select a carrier that does not offer online administration. In addition, small employers prefer self-enrollment, online, through their benefits administration system, and want their employees to receive personalized enrollment communications. These preferences increasingly mirror large employer preferences making both markets easier to serve.
The Voluntary and the Small Case Market Spotlight™ Report offers comprehensive data for those who focus on the small case market and those who may be assessing its potential.
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.