Brokers want more simplicity in benefits marketplace

As the world gets more complex every day, it seems everyone is seeking simplicity. And, it appears, benefits consultants are no exception. Trustmark recently partnered with C+R Research to conduct a survey that spanned several months and interviewed hundreds of voluntary benefits consultants. It found that benefit consultants wanted more simplicity when it comes to the group voluntary benefit solutions they offer their clients. And, that simplicity revolved around four specific themes.

Keep the experience extremely simple for policyholders
Right now, complexity is getting in the way for policyholders. They have questions about pricing, claims, and administration — and those questions often have to go through Human Resources for answers. Not surprisingly, this is creating a less-than-ideal experience for policyholders. On the flip side, our survey found that these three items lead to a superior policyholder experience:

1. Fast and accurate claims processing
2. Reliable, accessible technology for submitting claims
3. Effective communication before enrollment and during enrollment

These all come back to the idea of simplicity (although there’s some overlap in the first two items). Part of paying claims quickly and accurately is providing a good customer experience for claim submission and processing. That, in turn, should include an easy, online process. And, when employees clearly understand benefit offerings, it makes for an easier decision-making process to get them the protection they need. As such, carriers that provide effective upfront benefits communications stand out.

The experience needs to be simple for employers, too
Not surprisingly, the survey indicated that brokers rank price as the primary factor when selecting a group voluntary carrier. However, the next two factors offer a glimpse into what’s currently top of mind: ease-of-administration and account service and support.

• Ease-of-administration: Brokers want technology that integrates easily with employer platforms. And while technology has always played an essential role in a benefits solution, in today’s world, eliminating the need for multiple or complex systems is a crucial driver of purchasing decisions.

• Account service and support: About 41 percent of respondents indicated that service-related issues are their top factor for choosing a group voluntary carrier. And this is the straightforward kind of service, like a phone call back, an email, or an acknowledgment, that makes the difference. Employers and brokers want to know that carriers will be there for employers.

Most brokers still want in-person enrollment
The COVID-19 pandemic disrupted what all of us have come to accept as standard in terms of enrollment. As with other areas in the survey, the trend here is toward ease of doing business and making life simpler for employers and employees.

Although virtual enrollment is on the rise, brokers still prefer an in-person enrollment for voluntary group enrollment. In fact, 56% of brokers indicated a preference for more direct contact through tactics like group meetings, HR-assisted enrollment, or enrollment firm-assisted enrollment.

Whether enrollment is virtual or in-person, we found that providing assistance was preferred to having employees go it alone through approaches like online self-service. Self-service is, admittedly, easy in terms of enrollment logistics, but it often makes it harder on employees and can make it harder to drive participation. That personal touch is still what folks want. It’s all about finding the right balance between simplicity and personalization.

The path to the right benefits
It’s never been easy to select the right group voluntary products for a client. On one hand, you don’t want to confuse employers’ processes. On the other, you don’t want to overwhelm employees with benefits. But, it really comes down to two key areas:

• Benefits selection process with the employer
• Bundling vs. Selecting best-in-class

Our research found that most employers look to brokers to take the lead in the benefit selection process. And, that’s not all that surprising, given the number of available benefits and carriers, and the complexity of putting together a benefits plan.

However, our research also found that many brokers want to simplify options by bundling the products they offer with a given carrier. Roughly 20% of brokers indicated that they typically prefer to bundle products from a single benefit carrier. On the flip side, nearly 33% of brokers are selecting the best products, regardless of carriers. One route is simple in that you only have to work with one carrier; the other offers the simplicity of choosing the best product without making sacrifices. In both areas, the predominant trend is making life easy.

Simplicity and quality don’t have to be mutually exclusive
Making your client’s lives easier doesn’t mean you have to sacrifice quality of service. In fact, I would argue creating more simplicity in the benefits selection and administration process will directly lead to more client satisfaction! From the claims experience to the simple act of being responsive to customer inquiries, it’s about making the process of offering, and enrolling in, benefits less work.

The key is finding the right balance between simplicity and quality. But, remember the research and data points I shared with you above. It’s our job to adopt this trend and deliver experiences that lead to lasting, rewarding relationships with employers. And, make their employees’ lives easier, too.