Voices of Voluntary Benefits

By Michael Naumann

This publication is titled “the Voluntary Benefits Voice” because our goal is to share the voices of Voluntary Benefits leaders across the industry to help us grow both in our own practices by learning from one another, but also as an industry. We try to share insights from a diverse set of leaders and entities across the country in each edition and in that spirit, Michael Naumann, VB RPL at Reliance Matrix, has interviewed several VB Leaders from different brokerages. Here is what they had to say about employer funding of traditionally “voluntary” benefits and where the market is going.

Michael: What trends in the industry are you seeing around employer funding of Voluntary Benefits?

Lorrinda Lattimore, VP, Sr. Consultant, Voluntary Benefits & HR Technology, Lockton: Funny question isn’t it… if it’s employer-funded, then is it still called Voluntary Benefits? There is a higher interest from clients and unlike in previous years, I am seeing clients take action on funding certain plans.

Allysa O’Donnell, Senior Advisor, Supplemental Insurance Professionals: We are seeing a trend around employer funded voluntary plans, particularly when an employer switches to an ICHRA model. Switching to an ICHRA can save a lot of money for employers and they are using the savings to then completely fund dental, vision, disability, etc.

Leah Govedarica, Director of Voluntary Benefits Strategy and Development, Alliant Insurance Services: Employer funding is growing in popularity, especially last year when employers were competing against one another for talent. While this is not a new trend, we did see an uptick in employers exploring the option of funding an Accident, Critical Illness, or Hospital plan for those enrolled in a High Deductible Health Plan. We also saw an increase in funding products like Identity Protection and Legal. Employers found that by funding these types of plans, they were able to provide employees with peace of mind and/or resources during a time of need, at a budget friendly price point.

Michael: Where do you want to see the Voluntary Benefits industry go?

Brett Daniel, Assistant Vice President, W/SW Region, Consumer Benefit Solutions, AON | Health Solutions: Based on current trends, industry developments, and my personal experience, there are a few key areas I would like to see the Voluntary Benefits industry potentially go: Increased use of technology: The Voluntary Benefits industry could see increased use of technology to enhance the benefits experience for employees, such as offering online enrollments, mobile apps, and virtual benefits fairs. Greater focus on wellness: The industry could place a greater emphasis on benefits that support physical, mental, and financial wellness, including wellness programs, wellness incentives, and telemedicine services. Personalization: The industry could evolve to offer more personalized benefits options, allowing employees to choose the benefits that are most relevant to their individual needs and preferences. Increased collaboration with employers: The industry could work more closely with employers to develop customized benefits packages that meet the unique needs of their employees. Greater transparency and simplicity: The industry could aim to provide greater transparency and simplicity in the benefits selection process, making it easier for employees to understand their options and make informed decisions. Integration with other benefits: The industry could work towards integrating Voluntary Benefits with other benefits, such as retirement plans and health insurance, to create a more cohesive and comprehensive benefits experience for employees.

Lorrinda Lattimore, VP, Sr. Consultant, Voluntary Benefits & HR Technology, Lockton: Keep evolving.. we are going backwards if we aren’t listening, learning and growing.

Shawn Ferguson, National Senior Vice President, Director of Voluntary Benefits & Product Development, Acrisure: Supplemental Health Benefits need to be considered more often with core medical and funding strategies. Employees need help from their employer to guide them in the direction of covering more 1st dollar risk exposure. Pre-and post-enrollment communication needs to be front and center. Guidance, whether in person, call-center, or Decision Support, needs to be provided to all employees at every OE. We need to realize that Benefit Election/OE is the most important investment/financial decision that most people will make over the course of the year.

Susan Elder, Voluntary Benefits Practice Leader, Strategic Non-Medical Solutions, Brown & Brown: Voluntary Benefits were once an afterthought, a “nice to have”. The mindset around VB has been shifting for years. While it is nice to see the voluntary benefits program, particularly the supplemental medical products become table stakes to attracting and retaining employees in a tight labor force, until we reach the point that these products are elevated and discussed alongside core and are part of the decision tree, we have work to do. We must continue partnering with carriers to deepen the claims integration process until we reach the point it is truly a touchless, seamless employee experience. Financial transparency is an absolute necessity – the broker/consultant must be willing to hold tough discussions with clients and carriers alike to facilitate loss ratio monitoring and appropriate rate action as a continual discussion. Lifestyle products finally have a place on the core platform and are becoming a greater part of the employee benefit strategy. Offering products that span the employee’s life stages and life events will continue to be essential in addressing the needs of a diverse workforce.

Much appreciation and gratitude to the Voluntary Benefit Practice Leaders for offering these insights. When actionable and applicable knowledge is shared within our community, we can expand our expertise and drive positive change. I'm looking forward to sharing additional interviews in upcoming editions as we grow and become stronger together.