New Eastbridge report explores changing admin support for voluntary benefits

AVON, CONNECTICUT, USA (December 16, 2021)

Latest research shows increasing competition and expanding services in third-party administration and outsourcing market

Competition in the third-party administrator market is heating up and offering carriers more options than ever for their voluntary benefits programs, according to Eastbridge’s 2021 Third-Party Administrators and Outsource Providers in the Voluntary Market Spotlight™ Report.

New competition is coming from payroll companies, enrollment platform providers, human resources firms, software developers and other types of businesses, the report shows. The types of services these providers offer also is expanding to include support from product pricing to commission processing to billing and payment management.

“Excellent administration has become a dominant factor for employers and brokers choosing a voluntary benefits carrier,” said Nick Rockwell, Eastbridge president. “Third-party administrators that emphasize flexibility, efficiency, security and strong customer focus can thrive in this market, but it’s essential they understand the complexities of voluntary benefits administration, and individual voluntary products in particular.”

The Third-Party Administrators and Outsource Providers in the Voluntary Market Spotlight™ Report provides benefit carriers with detailed information on select leading TPAs and third-party outsource providers with voluntary market experience. The report compares the services of six TPA/outsource providers to better understand their capabilities and offerings in the voluntary market and provides a new perspective on carrier outsourcing practices, exploring how commonly they outsource administration, which functions they outsource, and how they handle situations where employers use a TPA.

Other key findings in the report include:

• More than 60% of voluntary carriers surveyed outsource one or more of their administrative functions to support their voluntary business.
• Voluntary carriers may need to use more than one vendor to find the services and strengths they need to support their business.
• Carriers considering TPAs should define the services essential to their needs and ask for references to ensure providers have the right experience to handle the nuances of voluntary administration.

  

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada.