In the benefits business, it's easy for carriers to fall into the trap of focusing exclusively on traditional insurance products rather than exploring real consumer needs and solutions. We do this because "products" are our game. They're part of our internal nomenclature, and we make our living designing and marketing them.
But consumers are not really interested in buying "products" from us at all. Instead, what they really want and need are solutions that help them prepare for life events and protect their vital assets. As economic uncertainty persists and health care mandates promise to alter the way that employee benefits are designed and paid for, consumers will play an increased role in determining which programs best meet their needs and how much they're willing and able to spend on them. Because of this trend, we need to focus on developing comprehensive solutions – solutions, of course, that include products and provide consumers with benefit choices that meet their needs, as well as simple, straightforward communications.
Going forward, voluntary programs will continue to grow and become more competitive. This is good news for many carriers and brokers, but it will come with challenges. We have to be careful not to think conventionally and simply offer more new products with the same enrollment strategies, just because of a perceived market opportunity. When an employer is paying most of the premium, employees want something completely different than when the employer is paying nothing.
So what are some of those things? It would be easy for me to reel them off, but the reality is, it depends. Consumers are not homogenous: age, family status, occupation, affordability – these are just some of the factors that influence their choices. The point is that we have to take these dynamics into account now more than ever when determining how to design solutions that matter, and when offering solutions that help employees understand which choices are most beneficial based upon their individual situation.
A good start is to ask employees what they want solved instead of telling them that you have an answer. It's important that carriers and agents get to know their end users (going beyond employers' needs and concerns), and understand their views. This information should then be embedded in their offerings and in discussions with the employer-clients.
For example, you may find that you have a client who has relatively young employees with little or no life insurance. In considering voluntary options, you might decide to recommend a universal life program, which takes on added value for someone young and single since the policy does a lot more than pay survivor benefits: Its loan feature can provide an easy and portable vehicle for retirement planning, and may offer riders that address additional individual needs.
Because such programs are flexible and may have built-in options, you'll need to consider an effective communication and enrollment process as part of the total solution so that employees understand those features and can make informed decisions. Such an approach also benefits the employer-client, who is already overburdened with the complexities of administering their core benefits programs, and often ill-equipped to properly educate their employees without help.
Thankfully, the solutions we provide remain important to employees. According to a recent LIMRA study on employees' perspectives on benefits, 62 percent of employees cited such benefits as medical, dental, and retirement plans as a critically important factor when deciding to accept a job offer. In this case, benefits stood ahead of employer stability (59 percent), paid leave (52 percent), and competitive salary increases (50 percent).
