January 2024
Voluntary Benefits Voice M A G A Z I N E
Up & Coming: Carriers to Watch
Behind the Buzz: A Broker’s Practical Guide to APIs
Market Predictions for 2024
Key Contributors
Jennifer Daniel Aflac
Jessica DePhillips Mercer
Jack Holder EBIS
Steve Clabaugh CLU, ChFC
Editorial Staff Editors Heather Garbers Trevor Garbers For Media and Marketing Requests Contact: Heather@voluntary-advantage.com and Trevor@voluntaryadvantage.com
Advisory Board
Mark Rosenthal PwC
Seif Saghri BenefitHub
Hunter Sexton, JD, MHA Sydney Consulting Group
Michael Stachowiak Colonial Life
FEATURED ARTICLES Advisory Board Predictions for 2024 Up & Coming: Carriers to Watch Beyond the Buzz: A Broker’s Practical Guide to APIs
What’s So Great About Relational Leadership?
New Year’s Resolutions We Wish Voluntary Players Would Make
Navigating the Evolving Landscape of Voluntary Employee Benefits
Long Term Care Insurance Poised to Create New Opportunities
From the Editor... It feels like just a quick second ago we were asking our colleagues what their plans were for Thanksgiving and before we blinked, the holidays and New Year celebrations are now in the rearview mirror. So here we sit already half-way through January 2024, and I’d be remise if I didn’t share how incredibly excited, we are for 2024 here at Voluntary Advantage. Over the past few weeks, I’ve seen on LinkedIn and other social mediums, where many of you have shared your personal and professional goals or maybe shared a new start with a given vendor or carrier partner to kick-off the year. We wish you all the very best in your new endeavors and we hope you exceed each one of your 2024 goals. As I was prepping for an upcoming industry podcast, I fully believe I disappointed the team when asked for my 2024 goals and my New Year resolutions. To their surprise, I’m not a goal or New Year’s resolutions type of person. I guess I’m a tad different, my vision every year for as long as I can remember is to fulfill my “dash” to its fullest. If you don’t know what I mean by my “dash”, it’s the mark between when you were born (which we don’t get to pick) and the date we move into eternity (which again we don’t get to pick.) So, as a baseball guy, if I’m 1 for 3, I’ll take it all day and I’m going to make the absolute very most of my one in being the “dash” in having thousands of you join this publication and electing Voluntary Advantage to play a small role in moving our marketplace forward, which has my “dash” already clicking here in 2024. As you read through this month’s publication, you’ll have an opportunity to hear from our Voluntary Advantage Advisory Board around their predictions for 2024, which I believe is absolutely loaded with industry leading insight and knowledge that hopefully you can use to build out your own “dash” in 2024!
By Trevor Garbers
VOLUNTARY BENEFITS T
G T X E HE N
MARCH 11-13, 2024 VIRTUAL CONFERENCE
N O I T A ENER
Learn What the Future Holds for the Voluntary/Workplace Benefits industry Sessions will include industry leaders presenting on: The Current and Future State of the Industry “View From The Top” The Start-Up Stage The Masked Broker Compliance & Legislative Updates How to Evaluate the Administrative Capabilities of a Partner What to Know When it Comes to API Wellness That Works Introduction to Relational Leadership AND MORE!
Cost: $50 per Attendee
New Year’s Wish List... New Year’s Resolutions We Wish Voluntary Players Would Make By Eastbridge Consulting Group, Inc. Losing weight, exercising more and saving money are perennial entries on many people’s lists of new year’s resolutions. All worthy goals, but don’t stop there. Voluntary carriers and brokers — and the employers and employees they serve — might consider setting a few resolutions for their businesses and benefits. Based on our work with and research on these key segments of the voluntary benefits industry, here’s our list of new year’s resolutions we wish carriers, brokers, employers and employees would make:
Carriers Reduce implementation times and billing errors. For years we’ve continued to see program administration as a lynchpin of carrier selection and case retention. Yet many carriers still receive poor marks on this aspect of client experience. Improve claims payment turnaround times. Many carriers are making efforts to better integrate claims triggers with other data sources. But some still aren’t even meeting baseline claims turn times. Crawl, walk, run ... Improve the ability to track details about voluntary business, such as participation rates, takeover rates and demographics of insured employees. Not receiving employee records at some reasonable frequency is also an antiquated approach that will lead to poor experience.
Brokers Increase participation in the voluntary products brought to employers. Be more strategic with voluntary enrollment. Spend more time planning it with employers and start having conversations about enrollment conditions earlier in the year. Enrollment conditions should be given as much — if not more — attention as carrier selection. Help employers understand the value of providing the right type of enrollment conditions. Use high participation rates as a goal for a well-delivered program.
Employers
Employees
Learn to view high participation in voluntary enrollment as a sign of a well-protected group. Participation should be the watermark for the success of a program. Low participation will rarely be a sign of few people needing the program, but more likely an insufficient effort to educate them. Provide the right type of enrollment conditions, specifically active enrollment where employees must say yes or no to the programs you’ve spent so much time vetting for them. Provide more multifaceted benefit education. People have different needs and learn in different ways.
Nick Rockwell President
Danielle Lehman Senior Consultant
Spend more time on benefit elections. These coverages help protect finances and require more attention than a cursory glance during each open enrollment. Enroll in enough coverage for now and in the future, including dependent coverage. Ask for help if the benefits aren’t easily understood. Of course, the ultimate goal for carriers, brokers and employers is for more employees to enroll in voluntary benefits and take advantage of the important protection this coverage provides. If we commit to that resolution, we’ll all get what we wish for.
Eastbridge is the source for research, experience, and advice for companies competing in the voluntary space and for those wishing to enter. For over 25 years, they have built the industry’s leading data warehouse and industryspecific consulting practice. Today, 20 of the 25 largest voluntary/worksite carriers are both consulting and research clients of Eastbridge.
RELATIONAL LEADERSHIP EXPERIENCE Can it Help Your Employer Clients?
Your employer clients are facing new and different challenges in today’s business environment including: Remote Work - Returning to Office Diversity - Equity - Inclusion Geopolitical Uncertainty - Cultural Conflicts The timeless principles of Relational Leadership can help your employer clients navigate these issues as they grow and prosper their business. Relational Leadership Experience helps your clients: Create and build high-performance teams Select and train the right employees Implement effective mentoring Develop positive conflict management Determine and implement the best outcomes Achieve ongoing growth and success In-person, online and combination programs available to meet the needs of your employer clients. To learn more about Relational Leadership Experience Contact: Steve Clabaugh, CLU, ChFC at sjcsr@hotmail.com or 910-977-5934
Advisory Board Predictions for 2024... By Heather & Trevor Garbers As 2023 has come to a close, we have asked our Advisory Board for their predictions for 2024. What will be top of mind for key stakeholders in our industry as they build out their strategies for the year? What are key areas of concern for employees as they make life decisions this year? What impact will outside influences have on our market including the political landscape and economy?
Here is what they had to say... Here are my 3 predictions for 2024: 1. In 2024, the trend towards personalized benefits will significantly intensify, moving away from the traditional 'onesize-fits-all' approach. This shift is largely fueled by the fairly widespread availability of AI-integrated solutions. These AIdriven, personalized benefits, not only cater to employees' desires at the right moments but also address diversity, equity, and inclusion (DEI), by focusing on individual-specific needs. 2. Data's pivotal role is set to expand further in 2024, as it forms the fundamental basis for enabling such personalization. It also offers employers critical insights into their employees' actual preferences and desires. 3. Consequently, this emphasis on tailored benefits is expected to lead to increased employee engagement rates. This outcome is the ultimate goal for employers, and it is likely to be realized much more effectively this year. Seif Saghri, CEO BenefitHub
I would like to start with some lessons learned in 2023, I found that less is more. I have worked extensively to help employers navigate the evaluation of new benefits that they would like to offer. Most employers do not have the bandwidth or capacity to offer multiple new benefits nor can they offer benefits that will satisfy everyone. Instead, they can offer key meaningful benefits that provide breadth and depth, variety and help meet employees where they are at. Overall, 2023 was a very progressive year... we saw a shift from employers thinking that everything has to very formal and almost delivered perfectly, to leading with the heart, being intentional, using inflection and emotion to get their message across. It was a very interesting year and a year of immense growth in the benefits world. In 2024, I believe that we will see employers continue to build on leading with the heart when it comes to their employees and creating a safe space. They’ll also be focused on doing more this year with less budget. Lifestyle benefits are also here to stay, employers can offer a robust suite of benefits for employees varying life stages and lifestyles. In addition, I see a top priority as empowering employees to make healthy choices regarding their total well-being as well as their family’s. Giving the employee the tools to truly take charge of their health and welfare. From the employees’ perspective, I believe they will be focused on better work/life balance, nutrition and overall well-being, PTO flexibility as well as giving back/charitable giving. They also still value a flexible work environment, which is interesting as many employers are requiring a return to office on average 3-4 days a week. We are also already seeing the state of the economy impact our business, especially in the healthcare and retail verticals. Having to do more with less, less budget and less staff and in some cases, fewer benefit offerings. This is where Voluntary Benefits come in as we can help creatively add benefits without burdening the budget or administration. Jessica DePhillips, Principal, Mercer Voluntary Benefits
In 2024, I believe that employers will be focused on workforce strategies, engagement, and satisfaction. I also believe that Generative AI will be a top priority as carriers and employers are looking for more efficient solutions to how benefits get offered, implemented and claims get paid. The economy has always impacted how employers conduct their business. In 2024, there still remains much speculation about how the economy will impact the insurance sector. Most expect to see inflation settle down from recent highs, which will make spending by employees stronger than what we’ve seen in the past couple of years. The Great Resignation has seemingly come to an end, but the rate of Boomers retiring, and other workforce concerns will continue to put pressure on employers and employees to fill job openings. We should see some industry sectors show strong growth and carrot policies will continue to drive engagement. We may also see slower employer investments in 2024 as financing conditions get tighter, which could impact some benefit budget decisions, but expect that most employers will continue with their overall investment roadmaps, especially around technology. When it comes to the impact of the economy on voluntary benefits, the question is “will employees be focused on enrolling in solutions offered at work or more immediate needs that may have suffered at home through 2023”?
Some last thoughts on the employee benefits industry are that remote work is here to stay despite some company’s efforts, and hybrid returnto-work will continue to be implemented throughout 2024. We’ll also see employee wellbeing continue to be a focus as people managers learn how to effectively manage through remote work and hybrid work strategies and create employee engagement and team morale. More than ever, employee education and guidance are a critical piece of the employee experience. Mark Rosenthal, Senior Managing Director, PwC Insurance Advisory
In 2024, I expect market penetration of worksite solutions to ACA-related issues to continue. New “disruptors” will be launching group supplemental health and ancillary benefits in earnest, and we know there will be a significant marketing investment propelling these pushes. Given the raised regulatory scrutiny on Hospital Indemnity plans, we also expect carriers with significant HI market-share to diversify their worksite coverage portfolio with less controversial coverage alternatives like long-term care and disability products. For employers currently offering Hospital or Other Fixed Indemnity plans, a top priority for them should be planning for resolution alternatives of the federal proposed Triagency Rule which impacts taxation and coverage scope of these products. If resolved as currently drafted, employers should be prepared to replace the lost value (due to taxation changes) of their certificate-holders, but acting before the rule is finalized could be counterproductive as there are indications that the proposed rule will be modified before final publication. Outside influences in our marketplace will include the state of the economy. As always, a robust economy where wages rise relative to inflation and unemployment remains below 4.0% nationwide should be a boon to the industry, as additional discretionary income is vital for increased sales of worksite products. Another key economic factor to consider is healthcare inflation, and healthcare inflation vs. general inflation. The value-proposition of voluntary worksite benefits improves as the costs of healthcare and comprehensive coverage rise. This is especially true when healthcare inflation outpaces general inflation. In this scenario, the costs of healthcare are felt more meaningfully on people’s budgets, so it follows that savvy consumers will explore options to insure against rising financial liabilities. Conversely, stagnant or recessionary economic trends that drain discretionary funds will be a significant challenge to growth. Lastly, I will say that while the full impact won’t be felt until 2025 but… The 2024 Presidential Election results WILL be impactful to the healthcare benefits regulatory climate. The two major political parties have completely different philosophies when it comes to exercising regulatory power generally and regulating healthcare specifically. Because the executive branch fully controls federal regulatory agencies like DHHS, CMS, and the Employee Benefits and Security Administration (ESBA), a change in political power probably entails abandonment or reversal of recently proposed federal rules aimed at regulating supplemental health benefits. Hunter Sexton, JD, MHA, Consultant, Regulatory Compliance at Sydney Consulting group
In 2024 I believe we will see one word guide the benefits market: robust. We will continue to see a strong, or perhaps an even stronger, need for robust benefits. While inflation has fallen from its most recent peak in the last few years, inflation-driven price increases, coupled with rising healthcare costs, continue to put pressure on employers and employees alike. The unemployment rate has continued to remain low, at approximately 3.7% as of December 2023, and consumers have driven stronger than expected economic growth over the past year. However, according to the latest Employer Health Benefits Survey study conducted by McKinsey, “Sixty percent of respondents reported experiencing healthcare cost increases that outpaced inflation in the past three years, and 63 percent expect that trend to continue, signaling potential cost challenges in the future.” As the healthcare industry remains under pressure and healthcare costs continue to rise, employees will continue to look for robust benefit options that will allow them to seek medical attention when needed – something that some have put off in recent years due to rising health cost. Subsequently, employers will continue to seek benefit options that will allow them to offer the most robust packages to their current and prospective employees, while also allowing them to effectively manage rising costs. In addition to robust benefit options, the desire for robust benefits technology that allows for a simplified yet bespoke enrollment and administrative experience for employees and employers has never been greater. Things like platform connectivity, API integrations and enhanced carrier digital capabilities will all continue to grow in demand. Closely aligned is the desire for robust benefits education as employees continue to seek guidance to fully understand their benefit options and ensure they are making the appropriate elections for their specific needs. Online and digital resources will continue to play an important role in benefits, but enroller assisted benefits education will also play a pivotal role as part of a comprehensive and robust communication strategy. As these 1:1 benefits education interactions are further enabled and aided by technology, the industry will continue to see a growing demand for a high tech, high touch enrollment experience. From an employer perspective this year, I believe that delivering a comprehensive total rewards package, inclusive of robust benefit options, will be a top priority, regardless of size. Employers want to promote and encourage their employees’ wellness and overall well-being, and employees trust their employers to do this through quality benefits and resources. As the workforce continues to diversify, interest in and demand for supplemental and nontraditional benefit options continues to rise. I believe this demand, paired with employers continued focus on cost management, will continue to drive offering a comprehensive total rewards package as a top priority for employers. I also believe that employers will focus on benefits technology and education as top priorities. Employers and their employees are looking for options that improve and streamline the benefits and administration experience, and robust benefits technology and education options will play a crucial role in delivering on this. Michael Stachowiak, Senior Vice President-Head of Sales, Colonial Life
In 2024, I believe we will see an increased focus on women’s health, specifically menopause and services for women in that stage of life as employers work to promote benefits equity. I also believe that we will see more options available for “holistic” benefits, including services like: IV Therapy, cold plunges, massage therapy and acupuncture. The benefits of these services from a true wellness perspective, especially tied to specific critical illnesses, is scientifically proven. Finally, I think that carriers will also be looking for ways to improve the member’s experience around a covered condition. If someone has cancer, what services does that member need in that specific situation to ease the burden of the condition, and how can carriers differentiate by providing those services? This goes beyond the traditional travel & lodging benefits and even caregiver support. Vendors such as Docsnap, a company that helps consolidate medical records regardless of facility, or chef services that help prepare healthy healing meals for employees with critical illnesses, will come to the forefront of the market with their solutions in this area. From an employer perspective, I believe that our clients will be trying their best to do more with less, based on the current economic conditions. This means that technology will be more important than ever. I think employers will look for ways to maximize the technology solutions they have and try to automate more where they can. HR Tech platforms have an opportunity to start “dating” their current clients again by showing them all the bells and whistles that they might be paying for but not using. Most of the HCM platforms out there have really improved their benefits modules and will be putting more pressure on the point solutions to step up their game. I leave you with this - the word for 2024 is experience. How can you create the best experience for everyone in the value chain? That’s how you will stand out. Jennifer Daniel, National Vice President Broker Distribution Strategy and Partnerships, Aflac
This year, I believe many carriers will be investing in integrations and connections to simplify and remove the human error that comes with manual processing. Claims are also a hot topic and more carriers are working to make the process easier or may even allow for auto-filing of some claims. Employers themselves are more commonly requesting custom employee engagement materials as they look for ways to attract and retain employees above and beyond increasing pay. Employee engagement that speaks to the employees will be key. Something to also be aware of is the economy. If the economy slows and medical premiums continue to rise, I think that employers will become more cost conscious when looking at the full benefit package. This will also result in more employers shopping voluntary benefit plans this year to ensure that employees are receiving the best value for their dollar. We are already seeing employers and broker partners ask to market existing plans that have been in place for years. Jack Holder, President, EBIS
Based on what we saw to end 2023, I believe we will see movement in 4 key areas that will cause a positive effect on the voluntary benefits marketplace: 1. Talent Mobility – Good to great talent continues to be at the top of mind for employer groups in finding ways to recruit these individuals. Yes, top line compensation matters, but having a strong benefit package will be a key role in recruitment – resulting in uptick utilization of non-traditional voluntary benefit offerings. 2. Inflation Reaction – We are hearing about the potential of 3-4 cuts in inflation to kick-off 2024. Note, we are in an election year so all parties will want to show positively to their voter base. With or without these cuts, policyholder bottom lines are still being cut each month. Voluntary benefits have traditionally seen spikes in increased premium production when our country is hurting financially overall. 3. Alternate Workforce – Better stated as blending workforces (hybrid and traditional). It’s no secret that hybrid and at-home work opportunities are leaving quickly. A key challenge will be, how can employer groups blend these employees together as they re-enter into traditional work environments and how can corporate cultures play a key role. We are seeing a rapid request for career development, employee education, employee training and other career advancement courses being implemented by high achieving employer groups, and this will not slow in 2024. 4. Employee Experience – As new entrants transition into the workforce, we are seeing a continued shift away from compensation and benefits, and moving towards a stronger focus placed on employees finding an employer who is engaged with their community, corporate giving and corporate engagement with organizations that positively affect the likes and passions of its employees today. We have seen this shift for a few years, and we don’t see it slowing in 2024. Trevor Garbers, SVP Voluntary Benefits, HUB International
Navigating the Evolving Landscape of Voluntary Employee Benefits: 2023 Review and 2024 Projections By John Allen, EOI Service Company
According to Eastbridge Consulting Group’s Forecasting Voluntary Sales report, dated September 2023, voluntary benefit sales are projected to return to historical levels over the next four years. While voluntary sales are impacted bymany factors including government legislation and regulations, economic conditions, and the effects the post-pandemic world, the voluntary benefit market has been fairly resilient, most recently bouncing back to near pre-pandemic levels with a 17.3% increase since 2020.
2023: A Year of Transformation In 2023, the voluntary employee benefits market continued to see significant transformations driven by changing workforce expectations, technological advancements, and an increased focus on employee emotional and financial well-being. Employers recognized the key role voluntary benefits played in attracting and retaining top talent in order to meet diverse needs.
Key trends shaping the voluntary benefits marketplace included: Customization and Personalization: One-size fitsall benefit packages are outdated. Employees expect personalized and customizable benefits that meet their unique needs and lifestyles. Employers responded by offering a wide range of options including: flexible work schedules, personalized health benefits, and financial wellness programs. The opportunity to customize benefits has been shown to increase employee satisfaction and foster a sense of empowerment and loyalty. Financial Wellness: The COVID-19 pandemic heightened awareness of financial well-being. In 2023, employers placed a greater emphasis on voluntary benefits that address financial concerns, such as student loan assistance, financial planning services, and emergency savings programs. Financial wellness benefits not only reduce financial stress for employees but also contribute to reduced absenteeism and turnover and provide a greater level of productivity. Workforce: Work from home has become more prevalent and voluntary benefits continue to adapt and cater to the needs of a remote workforce. Now, more than ever, employers are offering benefits such as home office stipends, virtual wellness programs, and mental health support in order to ensure their remote employees feel connected, supported, and engaged.
Technology: Advancements in technology are playing a crucial role in transforming the voluntary benefits landscape. Employers are leveraging innovative solutions such as: mobile apps, artificial intelligence, and data analytics to streamline benefit administration, enhance communication, and provide an enhanced employee experience. Technology integration not only improves efficiency but also empowers employees to access and manage their benefits with ease. Mental Health: Mental Health has gained significant attention in recent years, and this trend continued to expand in 2023. Employers are recognizing the importance of offering comprehensive mental health benefits, including: counseling services, stress management programs, and additional resources. Fostering a supportive and caring mental health environment is critical to preserving a healthy and productive workforce. DEI – Diversity, Equity, and Inclusion: In 2023, there was an expanding emphasis on voluntary benefits that contribute to diversity, equity, and inclusion. Employers are offering benefits that address the unique needs of diverse employee groups, such as: parental leave policies, childcare support, and language learning programs. These initiatives not only promote a more inclusive workplace, but also contribute to a positive employer brand. Social and Environmental Responsibilities: Employees are increasingly gravitating towards employers who align with their values, including a commitment to environmental and social responsibility. Voluntary benefits that support sustainability, such as eco-friendly transportation options or charitable giving programs, are gaining popularity. Employers are recognizing the importance of corporate social responsibility in attracting and retaining socially conscious employees. Addressing the complexities of a modern workforce must involve adapting voluntary employee benefits to appeal to a dynamic and diverse workforce. Employers who recognize the evolving needs and expectations of their workforce, embrace innovation, and prioritize employee well-being, will be wellpositioned to attract and retain top talent in the years to come. All of the above trends speak to the importance of flexibility, personalization, and a holistic approach to employee benefits now and in the years to come.
2024 Projections: Navigating the Path Ahead As we welcome in the new year, the landscape of voluntary employee benefits is well positioned for growth. Workforce dynamics will continue to shift, driven by global events, technological advancements, and evolving expectations. Predicting the future of voluntary employee benefits provides employers with valuable insights allowing them to stay ahead of trends and, in doing so, meet the diverse needs of their workforce. Trends that will shape the voluntary employee benefits market in 2024 include: Hybrid Work Flexibility: Hybrid work models are expected to continue into 2024, with more companies embracing flexible work arrangements. Voluntary benefits will likely evolve to support the unique needs of employees working both in-office and remotely. Employers may introduce benefits such as: virtual wellness programs, caregiving support, home office support, and collaborative technology tools, to promote a seamless and supportive work experience regardless of location. Holistic Well-being: In 2024, there will be a heightened focus on holistic employee well-being, encompassing physical, mental, and financial health. Voluntary benefits packages are expected to expand to include a more comprehensive range of offerings, such as personalized wellness plans, mental health resources, and financial education programs. Employers will increasingly view employee well-being as a strategic investment. Artificial Intelligence: Artificial Intelligence (AI) is poised to play a more significant role in tailoring voluntary benefits to individual employee needs. AI will be used to analyze employee data and preferences enabling employers to offer a more personalized benefit package. Customized benefits not only enhance the employee experience but also contribute to higher levels of engagement and satisfaction. Non-traditional Benefits: The classification of employee benefits is expanding beyond traditional offerings such as Accident, Critical Illness, and Hospital Indemnity plans. In 2024, we can expect to see a rise in non-traditional benefits that address emerging needs. Benefits will continue to evolve in order to address remote work, skill development, diversity and inclusion programs, and emerging technologies.
Additionally, benefits such as long-term care and genetic based cancer plans are expected to take center stage. Employers will need to differentiate themselves and can do so by offering innovative and forward-looking benefits that align with the evolving trend and expectations. Employee Involvement in Benefit Design: In 2024, employers may increasingly involve employees in the design and selection of voluntary benefits. This approach not only empowers employees by allowing them to choose benefits that align with their priorities but also fosters a sense of ownership and engagement. Employers may use surveys, focus groups, and feedback sessions to better understand their employees’ evolving needs and preferences.
Sustainability and Social Responsibility: A continued emphasis on sustainability and social responsibility is anticipated in 2024. Employees are increasingly drawn to organizations that demonstrate a commitment to environmental and social causes. Voluntary benefits may include initiatives such as: eco-friendly commuting options, community service programs, and charitable donation matching. Employers who align with the values of their workforce will likely see increased loyalty and positive employer branding.
Conclusion: Benefits
Embracing
the
Future
of
Voluntary
In 2024, the voluntary employee benefits landscape promises to be dynamic. Employers who embrace trends and proactively enhance their benefits offerings will be well positioned to attract, recruit, and ultimately support a diverse employee population. As we embrace the future, voluntary benefits will play a significant part in effectively recruiting and engaging employees leading to a positive outcome for all.
John Allen is President of EOI where he executes and develops strategic marketing initiatives on a national level, specifically focusing on the enhancement of value-added services that EOI provides for its clients. Since joining EOI in 2009, John has played a key role in the area of strategic marketing, building an outstanding implementation team in the Chicago office and tripling sales in the Midwest region.
Up & Coming... Carriers to Watch By Heather & Trevor Garbers Change can be good. Our industry has changed immensely over the past 10 years, potentially more so than the previous 30 years combined. The market that we see today is highly customizable to the needs of the employer and consumer and has driven voluntary / workplace benefits to become a mainstay in employee benefit offerings. This innovation has included many of the traditional medical and ancillary carriers enter the voluntary benefits marketplace over the past several years as they look to expand their benefits offerings to meet consumer demand and grow their profits. Today, we would like to focus on a few of the outsiders entering our marketplace. New players that may have a unique value prop that can disrupt the traditional way of doing business. Let’s start with you James Ocampo (EVP Workplace Benefits), introduce us to Wellfleet Workplace. “Wellfleet Workplace offers flexible, digitally forward benefit solutions through a suite of products, including Accident, Critical Illness, Hospital Indemnity, and Short Term Disability Insurance.
Wellfleet is a Berkshire Hathaway company with the highest financial ratings, delivering customer-centric accident and health insurance with quality service and uncompromising ethics.” Roy Mangum (Head of Voluntary Benefits and National Broker Relationships), please introduce us to Equitable. “Equitable is a leading provider of financial advice, protection, and retirement strategies with 2.8 million clients nationwide. The company’s Employee Benefits business offers nonmedical benefits such as Dental, Vision, Life, Shortand Long- term Disability, Accident, Critical Illness and Hospital Indemnity. According to LIMRA’s yearend 2022 inforce report, Equitable was the fastest growing group carrier based on inforce block growth.” “Equitable” refers to Equitable Financial Life Insurance Company (NY, NY).
What makes your company unique in the marketplace? Roy - Equitable’s digital ecosystem allows us to evolve with ever-changing market conditions, and to turn disruption into opportunity. Our business has no legacy systems and is built on cloud-based technology allowing our EB360® benefits platform to seamlessly connect through a single source system that provides our internal and external users with access to the same data in real-time. Without legacy systems, Equitable can serve our clients more effectively and efficiently by building a scalable operating model without compromising the customer experience. We recently established a partnership with Ushur to incorporate AI technology into our quoting process. We also just rolled out a new digital onboarding process that will provide a best-in-class experience and improve turnaround times. EB360® is a registered mark of Equitable Financial Life Insurance Company
Equitable’s digital ecosystem allows us to evolve with ever-changing market conditions, and to turn disruption into opportunity - Roy Mangum James - Bringing together leaders and innovators from across the industry, Wellfleet has reimagined how to deliver workplace benefits. Unencumbered by outdated systems, manual processes, and old ways of doing business, we connect every step of the workplace benefits experience to increase accuracy and save time. Through flexible and fast integrations, we’ve solved many recurring issues we see in the market. One great example of this is our enrollment experience. Our solutions can adapt to process a variety of customer data formats, and we are able to issue and confirm coverage in real time — with individual certificate numbers in minutes. When enrollment election data is loaded ahead of the effective date, members can receive personalized customer service as soon as enrollment is complete.
Wellfleet has reimagined how to deliver workplace benefits. Unencumbered by outdated systems, manual processes, and old ways of doing business, we connect every step of the workplace benefits experience to increase accuracy and save time. - James Ocampo What is your niche in the marketplace? James - Wellfleet is happy to meet clients wherever they are in their data exchange and technology journey. Because our technology translates information from a range of file and data formats, we can drastically decrease configuration time and reduce costs, whether it’s via electronic data interchange (EDI) or application programming interface (API). With the robust capabilities we offer, such as how we leverage APIs, we continue to seek partnerships with brokers and technology partners that are ready for these advanced integrations. When they do so, they work directly with us, as our APIs are built in-house. Roy - Our business is designed to compete exceptionally in three target markets. First, as a voluntary benefits carrier, we are capable of serving the small, mid-sized, and large case markets well. Our focus on technology has allowed us to realize efficiencies bringing industry leading products, pricing, and client service experiences to all employer group sizes. Second, we are one of the few carriers who have strong focus on the specialty markets space, which includes associations, unions, PEOs, and other “non-traditional” employee segmentations. Lastly, we compete exceptionally well in the under 500 employee market with our non-medical group product offering. All of this combined with our focus on technology allows us to deliver industry leading products and client experiences in a size segment where other carriers struggle. What would you like to change about the way we do business today? Roy - Overall, I’d say as an industry we need to do a better job of harnessing technology to improve the employee benefits customer experience. For example, onboarding a new client onto your benefits platform should be as simple as buying an item online or applying for a car loan. With respect to voluntary benefits, I’d like to see more brokers and employers embrace voluntary benefits as not simply “a nice to have,” but “a must have,” given what we saw during the height of the pandemic as well as the continued rise in healthcare costs, both of which have shown us the value of these benefits in covering out-ofpocket medical expenses.
James - Medical claims integration is a helpful tool to drive more value to the end consumer, but the customer experience and pricing must mature. The implementation and claims experience needs to be easy and hassle-free, as setup with medical claim TPAs, obtainment of employee opt-ins, and false positives can create friction in the experience. Additionally, we would expect benefit utilization to increase; however, it is difficult to project how much claim submission rates would increase. We can see a future where all groups have claims integration, and any claim that goes through a medical plan automatically triggers these supplemental benefits. This would create a true benefits ecosystem, with the customer in the center, where we don't rely on them to submit a claim but instead meet them where they are at a time when they need us most.
As our marketplace evolves, keep these growing and nimble carriers in mind as you are building strategies for your clients. The unique perspective they bring to the voluntary / workplace benefits industry could give you a competitive edge or help you to create a new niche to meet the growing needs of consumers. New vendors that don’t look at the market from the viewpoint of the way they’ve always done business, that aren’t encumbered with legacy systems, that are hungry to grow their presence in the industry, can be the driving force behind how business will be done in the future. Change can be good.
Roy Mangum, Head of Voluntary Benefits and National Broker Relationships, Equitable Roy joined Equitable in 2022, prior to that he spent 18 years as a benefits broker followed by 9 years in sales leadership with a carrier focused on the voluntary space. Roy’s focus is cultivating strategic relationships with national brokers and evolving our voluntary benefits strategy bringing additional attention and resources to these essential products. He is an avid golfer and enjoys lots of outdoor activities with his wife Kerith, and their 5 children.
James Ocampo, EVP Workplace Benefits, Wellfleet Workplace - As the leader of Wellfleet Workplace, James is focused on driving sustainable results through strategy development, planning, and execution across all business functions. James joined Wellfleet in 2018 with more than 20 years of experience in the insurance and healthcare industries.
“There’s a way to do it better – find it.” –Thomas A. Edison
Beyond the Buzz: A Broker’s Practical Guide to APIs
By Meg Collins, Chief Growth Officer at Ideon
In the rapidly evolving world of employee benefits, brokers are seeing the acronym APIs—Application Programming Interfaces—pop up more frequently. But it’s more than just a buzzword. Employers are asking about them, and questions about APIs are appearing in RFPs for carriers, benefits administration software, and other vendors. But what exactly is an API, and how is it reshaping the benefits industry? As a broker, understanding APIs may seem optional today, but it won’t be for long. To stay ahead, you won’t need to be an API expert. You’ll just have to understand API basics, keep up-todate on the latest trends, and ask the right questions. This approach establishes you as a tech-savvy advisor, ensuring your clients choose the carriers and vendors that deliver top-tier experiences.
API Basics Simply put, an API allows two or more different software applications to communicate with each other efficiently and in real-time. Consider how a GPS navigation app like Google Maps suggests real-time traffic updates and route changes. It uses APIs to gather up-to-date traffic information from various sources, enabling it to effectively guide you to your destination.
In the benefits industry, APIs similarly connect different systems — from insurance carriers to HR and benefits platforms like ADP, PlanSource, and Employee Navigator — ensuring seamless data exchange for benefits management. Several tasks during the typical benefits experience require these systems to send information back and forth: submitting member data at initial enrollment and during life events, EOI (evidence of insurability) applications and decisions, and case installation are just a few common examples. Although EDI (electronic data interchange) has been the prevailing method for data exchange, it falls short of permitting the smooth digital experiences that today's members crave. APIs are emerging as the industry’s next iteration of data connectivity, and it’s easy to see why. In an age where people are accustomed to instant digital services—Amazon, Netflix, food delivery apps, etc.— the slower nature of EDI doesn’t quite measure up to expectations. APIs, on the other hand, allow for real-time data sharing. Imagine enrolling in a medical plan this morning and being able to pick up your prescription this afternoon. APIs are turning this into reality.
They lead to enhanced member experiences, automated processes (resulting in less administrative work for brokers!), and, overall, a smoother benefits journey for all parties involved. API-driven carriers and benefits administration platforms offer superior service to brokers, employers, and employees: faster enrollment, reduced data errors, efficient account maintenance, and more.
It's all about ensuring that the solutions you bring to your clients are not just API-enabled but API-efficient, enhancing the overall member experience.
What's at Stake
APIs truly are the backbone of digital transformation, and we’re really just getting started.
APIs can streamline processes, reduce errors, and improve overall client satisfaction. However, if we as an industry fail to improve our API adoption rate, it could leave brokers and their clients lagging in a rapidly digitizing world. Over the next few years, there will be clear winners in the API development race among carriers and benefits platforms.
The Current State of API Adoption
And that’s an opportunity for brokers.
APIs sound ideal, so they must be everywhere, right? Not quite yet. Ideon and LIMRA recently surveyed leading carriers to provide a window into the industry’s current state of API adoption.
Those who embrace their role as technical advisors, directing clients to the best-integrated solutions, will leapfrog peers and become industry leaders.
The main takeaway: Most ancillary and voluntary benefits carriers are developing APIs, but the actual adoption and usage of those APIs remains quite limited. For example, while 76% of carriers report having API connectivity with external platforms, only 8% use it for most or all of their transactions. A review of data exchange speed tells a similar story. Despite almost half of carriers claiming realtime capabilities, 84% stated that the majority of their benefits data is not processed in real-time. And speed like this really makes a world of difference. When updates can be implemented in days instead of months, brokers can say ‘yes’ to lastminute client requests for plan changes or even adding a new benefit. Overall, there’s a strong foundation for widespread adoption of APIs. However, there’s still much work to be done in order for most brokers, HR teams, and employees to reap the benefits. Decoding Broker Needs and Knowledge Gaps Adoption may be limited now, but the tide is turning. Brokers don't need to know the nittygritty, technical details about APIs, but understanding the basics and asking the right questions is essential. When discussing APIs with carriers, tech vendors, or clients, focus on the types of data exchanged, the frequency of data synching, and whether your client’s preferred carrier-platform combinations are supported by APIs.
After all, the shift towards API connectivity is not merely an upgrade – it's a transformative change in the way the industry does business, a realignment to match the digital expectations of today's employees. It’s worth being at the forefront of such a monumental moment.
A Look Ahead Understanding APIs is not just about keeping up with the latest buzzword or technology; it's about moving the entire industry toward a more connected, efficient future. All industry participants—brokers, carriers, technology platforms—must embrace and advocate for effective API utilization. Stay tuned for another article next month, where we'll delve into how we can collectively push forward in this journey.
Here are five key questions brokers should consider to ensure they recommend the best carrier and BenAdmin solutions:
Can you exchange data via APIs? If not, is this on your roadmap?
What functionality do you plan to add (EOI, eligibility updates, initial enrollment, case installation)? Which carriers and platforms are you currently connected with, and what are your plans for the next 1-3 years?
How long does it typically take to implement a group and add a new benefit?
Who are your preferred carrier/BenAdmin partners, and how do these partnerships enhance connectivity, services, and operational efficiency?
Meg Collins, Chief Growth Officer, Ideon - Formerly a broker and a leader at Benefitfocus, Meg brings her unique perspective to her current role leading sales and marketing at Ideon. Driven by her firsthand insights into the industry’s outdated data connectivity, her mission is to champion modern, API-powered data exchange for carriers, benefits platforms, and brokers, ultimately driving better outcomes for the most important stakeholder: the member.
Year in Review:
Long Term Care Insurance Poised to Create New Opportunities
By Marc Glickman, FSA, CLTC Long term care (LTC) insurance is a rapidly evolving and expanding market that offers new possibilities and solutions for the growing needs and demands of LTC consumers. In this article, we will explore some of the major factors and events that influenced the LTC industry in 2023, and how they will affect voluntary benefits in the upcoming year and beyond. One thing that is clear is that employers will play a crucial role in providing access and affordability to LTC coverage and caregiver support for their employees. Knowing the trends will enable us to have productive discussions with employers and present them with suitable options.
2023: A strong building year for LTC + Life Insurance solutions. Epidemic of Family Caregivers: There are now over 50 million in the U.S. alone. BuddyIns estimates this increases each year by 5-10%. Cost of Care Increases: The continued shortage in quality home care agencies, assisted living facilities, and nursing homes continues to drive the cost of care higher by over 5% annually. The median cost of care for home care today in California is now $80,000/year ($6,700/month) and for nursing home care it is $160,000 ($13,400/month). We project care costs to go up 400% in 30 years.
State Payroll Tax Momentum: California is inching closer with their recently released Task Force report recommending a Washington-like solution. Several other states announced commissions to study the issues. Interest Rates Rise: For the first time in years, sustained inflation and interest rate increases allowed carriers to reduce pricing and develop more competitive products for LTC, Life insurance, and annuities. Interest rates may decrease in 2024, but the competitiveness of new products is likely to remain. Technology Adoption: Carriers continue to move to streamlined solutions and platforms. AI and ChatGPT became the buzzwords of the year and may impact how insurance solutions are delivered in the future.
2024: The pipeline of insurance opportunities is stronger than ever. Group Growth: Group LTC + Life solutions are growing in popularity with an estimated 40% in annual market growth for voluntary benefits. Better by the Dozen: By the end of 2023, there are 10+ worksite Life + LTC filed products available in the market. In 2022, there were only a couple with a true LTC benefit.
Creativity is Rewarded: New markets are opening up massive opportunities such as GI employer funded strategies with tax advantages for smaller groups or carve outs to GI LTC + Life solutions for large associations groups and PEOS. Get on the LTC Bandwagon: We predict that the number of new carriers and large groups that are promoting LTC education will create a robust cycle of clients asking their brokers for solutions their peers are being offered. Solution Refresh: Companies with decades-old traditional LTCi solutions that haven’t had access for their new employees in many years are looking to upgrade to the new products. Katie, Bar the Door: Should California gain momentum in launching their state payroll tax with private insurance opt-out…Katie, bar the door. All Solutions are Welcome: Individual LTC and Hybrid solutions will benefit from the mass education and awareness the group market is developing to serve clients with supplemental coverage toward the rapidly increasing LTC cost of care.
What about the Caregivers? There are several established high tech and high touch caregiving solutions, like TCare, focused on supporting employees and associations, in addition to a wide range of upstarts. The LTC insurance market is undergoing a remarkable transformation, driven by the growing demand, rising costs, and innovative solutions for long term care and caregiving. Employers are playing a key role in providing access and education to their employees, who are increasingly looking for ways to protect themselves and their families from the financial and emotional risks of an extended care event. Benefits brokers have a unique opportunity to leverage the trends and developments of 2023 to offer a variety of LTC + Life solutions that meet the needs and preferences of different groups and individuals. 2024 promises to be an exciting and rewarding year for those who are ready to embrace the LTC revolution.
Marc Glickman, FSA, CLTC, is CEO and co-founder of BuddyIns, a leading long-term care and hybrid insurance technology company - Marc is also an actuary and has served as the Chief Sales Officer for a major LTC insurance company. Marc can be reached at marc@buddyins.com, by phone at 818.264.5464, or by visiting www.buddyins.com/partner.
What Is So Great About Relational Leadership? By Steve Clabaugh, CLU, ChFC I love hearing motivational speakers, especially those who tell great stories and share valuable principles learned from their experiences. Legendary football Coach Lou Holtz is among the best speakers I’ve ever heard. One description I remember hearing about him, was that he could pick out 11 guys in the parking lot and turn them into a championship football team. I was in a crowd of more than a thousand people hearing him speak one day and by the time he finished, I think we would all have run through a wall to be on his team. A couple of weeks after hearing Coach Holtz speak, while sharing with a friend how motivating his speech was, he asked me what lessons I had applied from the presentation. Sadly, none came to mind, which raised the question of, what was the value then of that great message? As that realization dawned on me, I decided to review my notes and apply some of what I had learned. In doing so, I found the speech became even more motivating as it impacted my actual daily life. Over a brief period of time (45 minutes to an hour usually) motivational speakers share with us practical ideas, principles and recommendations gained from countless hours of research and life experiences over years of time.
Time they have spent learning and converting the knowledge gained into wisdom to share. It only makes sense that we should take the time to implement those ideas, principles and recommendations into our lives. The concepts of Relational Leadership have been developed through years spent studying lessons from great thinkers and leaders from the fields of psychology, business, religion, sports, philosophy and more. They have then been applied to real world business environments in insurance and various other industries. The application of these lessons has further refined them; leading to the concepts we share with you in these monthly articles and in our Relational Leadership Experience program. Relational Leadership is all about building a culture that can successfully respond to the challenges of time. What’s so great about it, is that it provides a clear plan of action for applying the lessons learned over years of study and experience. Make no mistake, you still have to put in the hard work to make it happen, but you have a proven road map to follow. That road map leads through understanding and applying 4 key elements.
First up are specific definitions of leadership and its purpose in building high-performance teams. Common characteristics of championship team behavior are then applied to those definitions. The result is a clear picture of what the high-performance team should look like. Second, it provides a tool for evaluating and selecting the right individuals to be on the team. This also includes making the tough decisions about those who aren’t the right fit, while helping them find the best place for them. There are always challenges to becoming a high-performance team that can be unsettling if not understood. Relational Leadership addresses those challenges and helps develop ideas to overcome them. Third, Relational Leadership identifies and uses various mentoring techniques to help team members perform at their highest level and accomplish their greatest achievements personally and as part of the high-performance team. It is important to note that some of the mentoring tools are designed to be of as much benefit to the mentor as to the mentee. Finally, Relational Leadership helps the highperformance team identify, agree and sharply focus on the answers to the 3 questions that will determine their greatest success. Those questions, based on the Jim Collin’s classic, “Good to Great,” are: What can we be passionate about? What can we be the best at? What is our maximum profit per X?
The late Dr. Michael Mescon was a long-time professor of business and management at Georgia State University. In some of his many speeches and books (he authored 34 books on those subjects) he referred to what he used to say was the common philosophy of business - “getting work done through people.” He believed instead, that we would be better off as a society if that motto was changed to “getting people done through work.” Dr. Mescon’s words were one of the earliest influences in my life as I began to discover the principles of Relational Leadership. They are still just as valid today. And those relationships can last far beyond the time of working together on the same team. Over the holidays, I had the privilege of enjoying some great fellowship with true friends I have worked with over the years. Some of those friends I have known for 25 years or more and some I just started working with over the past year or two. It continues to fascinate me how many personal and business opportunities have come about from those relationships that were established long ago. This, to me, is the ultimate payoff of Relational Leadership – the pure joy of great relationships that last the test of time. As we begin another New Year if Relational Leadership can benefit your organization or that of your clients feel free to contact me to discuss or to request our flyer that provides detailed information about the Relational Leadership Experience. Best wishes for exciting and successful leadership in 2024.
Oh, and one more very important thing - it’s about relationships. No matter where we work or what organizations we are part of, we will form relationships. Some are positive and others are not. Relational Leadership leads with relationships rather than simply allowing them to develop in an accidental manner. As humans, we naturally try harder to do better when we’re doing it with and for people we care about.
Steve Clabaugh, CLU, ChFC - started his career in insurance as a Field Agent, moving on to Sales Manager, General Manager, Regional Manager, Vice President, Senior Vice President, and President/CEO. A long time student of professional leadership, Steve created the Relational Leadership program that has been used to train home office, field sales associates, mid-level managers, and senior vice presidents.
Copyright 2023 by Voluntary Advantage, LLC. All rights reserved. No part of this magazine may be reproduced in any form without consent. The Voluntary Benefits Voice is published monthly in digital format only by Voluntary Advantage, LLC. Subscriptions are available at no cost by subscribing at www.voluntary-advantage.com.