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Workplace Benefits: A Sector Ripe for... BY E R I K G R AY A N D A N T H O N Y G R O S S O
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n today’s fast-evolving landscape, the insurance industry is undergoing a transformative shift. Amid this shift, carrier technology is emerging as the driving force redefining the roles of brokers, employers, and employees in the employee benefits insurance sector. The introduction of cutting-edge technology by insurance carriers is poised to disrupt the way the industry operates, providing a seamless experience for all stakeholders involved. Here we delve into how insurance carriers’ new core systems (coretech) are becoming the enabler of a better broker, employer, and employee experience, emphasizing why brokers must insist on better carrier technology and reposition themselves as architects of a new era in workplace benefits. An Environment Ready for Disruption A recent report by LIMRA and strategy consulting firm, EY, entitled, “Fast Forward: Employer Views on the Future of Benefits,” was revealing, especially as it relates to carrier technology. The result of over 800 employers’ expectations for the future of workforce benefits, the study found that, “Given their increased reliance on benefits technology, 72% of employers predict that carriers’ digital capabilities will play a larger role in carrier selection in five years.” Notably, those employers that expect to offer more benefits or work with more carriers five years from now are particularly likely to say they’ll scrutinize carriers’ digital offerings. The study continues: “When selecting a carrier for a new benefit, two thirds of employers (regardless of size) say they would choose a carrier that works well with their benefits technology platform, even if their product is a little more expensive.” This is the perfect environment for disruption — one where the status quo is no longer acceptable, and there’s mounting demand for new ways of working that eliminate the pain created by inflexible legacy technology. What’s clear is brokers can no longer rely solely on cost considerations. The dial has shifted to the efficacy of carrier technology that now holds the key to addressing the longstanding challenges plaguing the industry. Embracing Disruption: The Role of Carrier Technology Traditionally, most carriers shared the same legacy technology problems that have created disjointed customer experiences, manual processes prone to error, and a sea of sameness in their product offerings. This has led broker and employer carrier selection to hinge mostly on cost when selecting carriers. It has also led to a litany of issues that have become all too familiar: Protracted onboarding processes, data-related complexities, delayed commissions, payment discrepancies, and a lack of education resulting in low enrollment rates. Once a case is sold, most carriers rely on separate systems for the various operational functions. This can result in the input at the time of a quote not necessarily being the same as what the billing or claims teams see. Not having a single source of truth leads to delays, the sharing of inaccurate data, and loads of rework across the board. Carrier platforms should be able to ingest, translate, interrogate, validate, and authorize enrollment files in a range of formats, while simultaneously being able to identify and 38 | CALIFORNIA BROKER
CalBrokerMag.com
JANUARY 2024
