Voluntary Benefits Voice - March 2024

Key Contributors

Steve Clabaugh CLU, ChFC

Editorial Staff

Editors

Heather Garbers | Trevor Garbers

Marketing Director

Marin Daniel

For Media and Marketing Requests Contact:

Heather@voluntary-advantage com and Trevor@voluntaryadvantage com

Jennifer Daniel Aflac

Jack Holder EBIS

Rachel McCarter Mercer

Mark Rosenthal PwC

Seif Saghri BenefitHub

Tim Schnoor Birch Benefits

Hunter Sexton, JD, MHA

Sydney Consulting Group

Michael Stachowiak

Colonial Life

The Advisory Board at Voluntary Advantage provides direction and insights into trends in the marketplace and topics that the industry wants to hear. We would like to formally announce the following new members in 2024:

Rachel McCarter, West Market Sales Leader, Voluntary Benefits, Mercer - her focus is to help current clients and prospects design voluntary benefit programs to drive and deliver value to their organization Prior to joining Mercer in June 2019, Rachel worked for 11 years as an Account Executive with MetLife Rachel brings broad experience and expertise to each prospective client relationship and gives back to Mercer and the community in a variety of ways, including serving as co-chair of Mercer’s VB DEI counsel, member of Mercer’s Women at Mercer BRG, member of the Denver Belonging Council, and co-leads Mercer’s Rising Professional Network BRG. Outside of her professional career, Rachel loves to spend time embracing an active lifestyle with her husband (Dan), and boys (Asher (9) and Eli (7)). Her passions include cooking, traveling, college football, and giving back to the community through various volunteer organizations.

Tim Schnoor, Voluntary Benefits Practice Leader, Birch Benefits – a perpetual learner with a knack for diving deep into any subject, Tim's genuine passion lies in nurturing relationships with everyone he encounters and going the extra mile for his clients and colleagues. Tim is now leveraging his deep industry experience to create an unparalleled benefit experience for employers. His mission is to help businesses attract and retain top talent by offering exceptional benefit packages. What sets Tim apart in the industry is his ability to combine profound VB experience with a strong background in Benefits Administration With key roles at Businessolver and MyWorkplace, he has led teams while enhancing operational efficiencies Tim's comprehensive understanding of plan development, system maintenance, file management, and employee experience make him an invaluable asset Outside of work, Tim cherishes his time with his wife and five children The Schnoor family enjoys an active lifestyle, frequently engaging in activities and sports of all kinds

Hunter Sexton, JD, MHA, Compliance Consultant, Sydney Consulting GroupHunter leads a best-in-class Regulatory Compliance Team that works with carriers and regulators to bring supplemental health, life and disability products to market Hunter earned his Masters in Healthcare Administration from the University of South Florida’s College of Public Health and his Juris Doctorate from Stetson University’s College of Law Hunter came to Sydney Consulting after 12 years of industry experience with major medical carriers that included sales, marketing, plan operations, and finance

FEATURED ARTICLES

Small Business But Significant Significant Market Share

The Small Business Opportunity

Direct-to-Mobile (D2M) Enrollment for Higher Engagement and Elevated Experience

Bridging the Gap Between Financial Stress & Future Security

Practical Wisdom from a Modern Day Mentor

Small Business Looms

Large in Voluntary Market

Enhancing Employee Benefit Enrollment For Small Business

New York Proposes

Payroll Tax to Fund

Long Term Care Benefit

Reimagining Workplace Benefits in 2024

Upcoming Events

Join Erik Gray on March 19th at 11 ET / 10 CT / 9 MT / 8 PT for an insightful webinar as we delve into the dynamic landscape of workplace benefits in 2024 Our expert panel will explore modern approaches to voluntary benefits to empower you in navigating the ever-evolving marketplace, including:

Strategies for Post-Sale Success

Latest Offerings and Trends in VB

The Power of APIs Proactive billing

Leverage Technology to Create a Better Voluntary Benefits Experience From Start to Finish

Join us April 16th at 12 ET / 11 CT / 10 MT / 9 PT as Jillian Mondaca and Amanda DeSousa with Prudential share how they are leveraging technology to create a better voluntary benefits experience from start to finish. They’ll discuss: Driving adoption with new enrollment capabilities and partnerships

Helping employees maximize their benefits with less effort with a simplified, integrated claims experience

Evolving for tomorrow with product and experience enhancements

From the Editor...

Greetings from Colorado! Spring is in the air, bringing with it the feeling of new beginnings, as we’ve sprung ahead due to the great daylight savings experience Amidst this transition, I turned to the incredible wave of transformation currently taking place within our marketplace in what I consider the most meaningful movement that I’ve seen in my tenure, which can simply be summarized with one word – EXPERIENCE!

I’m so incredibly proud of our marketplace for making an impactful decision over the past 18 months to refocus and prioritize the importance of claims, claims execution, utilization, migration of claims data, participation, etc., all while connecting that to the experience of the valued policyholder. Without hesitation, when we place the needs of the human, who we label as a policyholder, within our marketplace first - all stakeholders win.

As we all know too well, our marketplace is famously known to get in its own way and in most cases, out maneuver itself, on even the simplest of tasks when attempting to move forward Now, don’t get me wrong, all stakeholders in the process are critically important ranging from the carrier, clients, brokers, tech firms, enrollment firms, etc We’ve traditionally built out new

By Trevor Garbers

solutions focused heavily on the stakeholders, yet, we forget the overall impact of how a poor decision can negatively affect the valued policyholder The policyholder is usually placing their limited income into these financial vehicles in hopes we will deliver at claim time

In many cases, we fail these people even before the solution made it to paper or breakroom for the enrollment On a weekly basis, I’m asked by fellow broker colleagues, carrier executives and others within our marketplace, who’s winning the business today and how are they doing it With zero hesitation, I firmly believe we have good partners, great partners and elite partners who are all working diligently to deliver solutions and win business However, what separates the good from the elite, is each of the elite organizations have a corporate culture that believes fully in the needs of the policyholder first and foremost These organizations are investing in the right areas; bringing in human capital to lead claims, exploring advancements in medicine to increase why a claim “should be paid” and not denied, investing capital in technology to enhance the employee/policyholder experience from quote to claim, hosting broker advisory boards and listening to those that are connected directly to the need and demand.

In closing, I’m so incredibly excited to be part of a marketplace that has such a wonderful opportunity to deliver on it’s promise each and every day and I challenge you to listen to see if those you are speaking with are talking about employee and policyholder experience or if you are in a role to make a change. I hope you now know how the business can be won!

Small Business Looms Large in Voluntary Market

By Eastbridge Consulting Group, Inc.

Big business may get most of the media headlines, but take a magnifying glass to the numbers and it’s quickly clear that small employers dominate the workforce Companies with fewer than 100 employees account for more than 90% of all businesses and 30 million employees That’s a huge slice of the market yet the small market is vastly underpenetrated when it comes to voluntary benefits, according to Eastbridge’s “Voluntary and the Small Case Market” Spotlight™ Report Small employers are less likely than other groups to offer many types of benefits, including voluntary Although 25% of all employees work in businesses with 10–99 employees, they account for only 20% of all voluntary sales

Here are some key insights into the big potential for voluntary benefits in the small market:

Carrier Perspective: Success in the small market can depend on offering the right products

Employee interest is by far the most important factor small employers consider when deciding to offer voluntary coverage Like all employers, core products including medical, pharmacy, vision and dental rank highly. But disability, term life, accident, critical illness, hospital indemnity and other coverages also are popular and often aren’t yet part of the package, especially for the smallest employers. And don’t overlook nontraditional benefits such as identity theft, legal and pet insurance. These products tend to have high interest but low penetration in small accounts

Broker Perspective: Your small clients value choice and tech support for their enrollments. A strong majority of small employers say they want to offer their employees a variety of enrollment options and let them choose those that best meet their needs In addition, small employers can benefit just as much or maybe even more than larger employers by taking a proactive approach to enrollment with a variety of pre-enrollment communications that help employees understand their benefits and drive stronger participation

Contrary to some assumptions, small employers expect online services: About 20% of those surveyed say they wouldn’t select a carrier that doesn’t offer online services, and 5% or fewer say having online services doesn’t matter to them Just like their larger colleagues, small employers want tools and services that help them and their employees, such as the ability to adjust and pay bills, change coverages, file claims and track claim status.

Employer Perspective: Small employers use a variety of tools and processes to enroll their voluntary benefits, but are more likely than larger employers to lean on more personal, lower-tech approaches, according to Eastbridge’s 2023 “MarketVision™ The Employee Viewpoint©” report Employees at small companies are significantly more likely than those at larger firms to enroll on paper, and less likely to use self-service online enrollments

Employee Perspective. Employees in small businesses say they prefer a more personal approach to learning about voluntary benefits, according to the recent Employee Viewpoint© report They’re notably more likely than those in larger firms to want to be able to speak with someone in person: It’s the top choice for those in companies with 50–99 employees, and tied for number one for employees in the smallest companies Small-firm employees also are a bit less likely than other employees to prefer learning on their own online or using information sent by their employer

The small employer market is a large and growing part of the voluntary benefits industry Understanding the needs and preferences of carriers, brokers, employers and employees can help these key stakeholders work better together to provide the most value to their clients and those they want to protect

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

Nick Rockwell President

Danielle Lehman Senior Consultant

Small Business But Significant Market Share

By Heather & Trevor Garbers

The theme for this month’s publication is “Small Group Strategies” and it was important for us to cover this topic for several reasons

According to the US Chamber of Commerce, who defines small business as those with less than 500 employees, there are 33.2 million small businesses in the U.S. today, which combined account for 99.9% of all U.S. businesses, and they are credited with 63% (17.3 million) of the new jobs created from 1995 to 2021. Small businesses are not going away, in 2021, a record-breaking 5.4 million new business applications were filed, and nearly as many (5.1 million) were filed in 2022.

Just because a company is classified as “small,” does not mean that their employees have any less need for a robust benefit offering There are 46% of workers or 62 million individuals, employed by a small business today, and we already know that covered workers at small firms on average, must pay a larger share of health insurance family premiums than those at larger firms In fact, 57% must pay $3,000 or more before at least one member of the family meets the deductible and the plan starts covering most services

For 35% of covered workers at small firms, the deductible is at least $5,000, and it may be even more if multiple people in the family must spend against the deductible in a year

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When it comes to an employee engagement and benefits standpoint, I’ve actually found that overall, small groups greatly care about their employees, often want to define their selves as an employer of choice through their benefits offering, are loyal customers, and can grow into “large group” status. They may just have limited resources, HR and benefits leads who wear multiple hats, and rely on their partners for more support.

With the growth in the number of vendors in our marketplace, there are a growing number of solutions available even for the “small groups” and we want to highlight some of the vendors that specifically target these clients with their solutions Andrew Story, Director of Broker Solutions at Aflac, and JM Spagnuolo, Head of Distribution, Employee Benefits at Equitable, are here to share their excitement about the small group market and why they have made it a key part of their value prop

JM and Andrew, many vendors choose to exclude the small group segment from their target market. Why do you instead choose to pursue this market?

Andrew - Small group clients are often overlooked, but we focus on this market because of the sweet spot between what the employer is looking for and the products and services Aflac provides This is a very large, and still under-tapped market Like most employers, small groups are focused on attracting and retaining top talent However, it is common for these businesses to face greater HR challenges, smaller HR departments and tighter budgets Still, in order to succeed, it is vital for smaller businesses to have talented teams in place to compete with larger employers in the benefit space

JM - Many carriers shy away from the small group space because of the operating cost Carriers must have efficient systems and streamlined processes for underwriting, implementation, and account management to be able to competitively compete while managing the volume of cases coming in the door. Carriers must have scalable operations while also collaborating with decision makers at employer groups who typically wear many hats and have less benefits expertise and administrative prowess. We can compete in the small case space and offer robust products at competitive prices because of our cloud-based technology backbone, our single source system, our ability to easily integrate with the evolving technology ecosystem, our incorporation of Artificial Intelligence, our ability to offer brokers, employers, and employees’ access to a powerful and intuitive platform, EB360®, and our market-leading digital onboarding process

What is trending in the small group marketplace today?

Andrew - Benefit administration systems are top of mind right now Tech vendors are working to streamline some of the biggest challenges in benefits software, ie, integration and ease of use Ideally, these advances enable the employer to offer the right mix of benefits from their provider of choice, while also making the selection process seamless for the end-consumer: employees We know from research that employees value a seamless and familiar enrollment experience For instance, 82% of employees stress the importance of being able to manage their benefits online, while over half stress that having access to a benefits advisor is important. That is where we can respond to the marketplace; we can help improve benefit education on behalf of the client. We are not a technology company, but we are a company that understands the value of technology. A key tenant of our value proposition is to help small employers implement technology into their enrollment without sacrificing their ability to effectively educate employees on benefits

Many carriers shy away from the small group space because of the operating cost. Carriers must have efficient systems and streamlined processes for underwriting, implementation, and account management to be able to competitively compete while managing the volume of cases coming in the door

JM Spagnuolo, Equitable

JM - In general, small employers are looking for simplicity and value from insurance carriers Small employers are more likely to consider placing all lines of coverage with a single carrier for ease of administration But the needs of all small businesses are not identical; there can be industry and demographic differences that play a significant role in determining what benefits are going to help attract and retain their workforce Overall, the conversation about holistic wellness is also starting to become more prevalent It's no longer just about physical wellness, it is also about mental, financial, social and professional wellness. Looking at a report from the US Labor Department’s Bureau of Labor Statistics, the economy added over 350,000 jobs in January of 2024 which “far exceeded expectations.” If there continues to be a war for talent, benefits will continue to be top of mind.

This is a very large, and still under-tapped market Like most employers, small groups are focused on attracting and retaining top talent.

Andrew Story, Aflac

What do you need to be successful in the small group market?

JM - This is still a relationship business and so having benefit experts on your team that can clearly articulate your story and value proposition is important. But to thrive in the small case space, a carrier needs to have a technological foundation that allows for quick technology design and process improvements as well as support growth, change, and connection

Andrew - In one word, efficiency Often, with small groups, HR is either a small department or, in some cases, a single person For these departments, bandwidth can be scarce That is why we focus on the best ways to help businesses enhance benefit offerings and administer plans in a way that supports the technology demands of today We all win when we can alleviate the challenges that a business faces during open enrollment season.

How can you stand out from the competition in this size segment?

Andrew - Plain and simple, make your client’s job easy Listen to what they say are their biggest pain points, and then deliver simple and straightforward solutions that help take the time and resources out of benefits administration Of course, offering valuable products that provide solutions is also essential

JM - I believe carriers that simplify the complex, that reduce friction from the tasks that are commonly associated with administering benefits, and that offer a solution that is built to work in the way that our customers prefer will have a competitive advantage.

Thank you Andrew and JM for sharing your insights on the small group market! And thank you to the carriers, technology providers, point solutions, consultants and more that provide solutions to this segment in our market

US Chamber of Commerce - https://wwwuschambercom/smallbusiness/state-of-small-business-now

1 “Family Health Insurance Is No Longer Affordable Through Small Employers” KFF - https://wwwkfforg/other/perspective/family-healthinsurance-is-no-longer-affordable-through-small-employers/

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2 Bureau of Labor Statistics (2024) Retrieved from: https://www.bls.gov/web/cewbd/table g.txt and https://wwwblsgov/web/cewbd/table ftxt

EY & LIMRA (2023) Harnessing Growth in Workforce Benefits

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4 US Department of Commerce (2024) By the Numbers: US Economy Adds Over 350,000 Jobs in January Exceeding Expectations Retrieved from: https://wwwcommercegov/news/blog/2024/02/numbers-useconomy-adds-over-350000-jobs-january-exceeding-expectations

JM Spagnuolo, Head of Distribution, Employee Benefits at Equitable - he joined Equitable in 2017 after holding sales and marketing positions at The Hartford, Lincoln Financial and AIG. He earned a Bachelor’s Degree from Georgetown University.

Andrew Story, Director, Broker Solutions Aflac - He began his career with the insurance industry as a sales associate with Aflac and grew the leading sales team in North Carolina. He then stepped into national broker sales and for the last 7 years he has focused on driving national sales strategy within the broker solutions space. His focus is on creating solutions in fulfillment, technology and product to meet the needs of brokers for clients under 500 lives. He enjoys the insurance industry because relationships and trust drive success.

The Small Business Opportunity

By Patrick Leary

The small business market has experienced significant disruption over the past several years The pandemic put many small businesses on the brink, with many closing either temporarily or permanently. However, according to the Brookings Institute, applications to the Internal Revenue Service for new Employer Identification Numbers (EINs) rose sharply during the second half of 2020 and remained elevated through mid-2023, with a shift in growth from large and mature firms to more dynamic young and small firms. In other words, the number of small businesses have been growing, and those businesses are positioning themselves for success in a postpandemic environment

No different from other organizations, small businesses are competing for talent and looking to create value propositions to attract and retain the best workers It is especially critical for small businesses to attract the best and the brightest, given the limited number of workers that any given small business employs Each employee has a significant impact on the overall success of the business

According to research conducted by LIMRA and EY[i], small businesses (defined in the study as having 1099 employees and currently offering insurance benefits) look to workforce benefits as an important component of their talent management strategies:

Almost 7 in 10 say that their company’s benefits package will be critical in order to attract and retain the best workers

Half indicate that they see themselves offering more benefits in five years than they do today; just 6 percent say they may offer less

Nearly half say their business will offer some (or more) insurance benefits to their freelance or contract workers in the future

While small businesses see the value in offering benefits, at the same time they face a number of challenges as they look to provide competitive benefits packages According to the LIMRA-EY study, cost is the most cited challenge for small businesses, even more so than it is for large companies (Figure 1) Many small businesses have been disproportionately impacted by supply chain disruptions and inflationary cost increases, placing added pressure on their ability to offer employer-paid benefits

To help address cost concern, many small businesses (43 percent) say that their workers will be paying a greater share of the premium costs for insurance benefits in the future, presenting a significant opportunity for voluntary benefits solutions

Yet despite the challenges, small businesses express high levels of interest in offering a range of benefits High utilization benefits (such as medical, dental, and vision) lead the way while other insurance benefits (such as life and disability insurance) follow closely behind. Voluntary benefits such as hospital indemnity, accident, and critical illness insurance are also of interest; more than 7 in 10 small businesses say their employees would value these offerings.

Brokers and benefits advisors play a critical role in helping small businesses build comprehensive benefits packages, especially given that most small businesses do have the human resources and benefits staff that larger firms often have

According the study, almost 8 in 10 small businesses have an outside broker or benefits advisor who assists with the design or purchase of insurance benefits

Compared to large businesses they are much more likely to say that their broker or benefits advisor is responsible for providing the education and awareness needed for employees to make confident enrollment decisions (Figure 2) Furthermore, almost six in 10 small businesses (58 percent) think that they will rely on their broker more in the future than they do today; only 7 percent said they will rely on their broker less in the future.

Many indicators point to small businesses as an opportunity to generate new sales of workforce benefits, and in particular, voluntary benefits. To be successful, carriers, benefits providers, brokers, and others must embrace the unique dynamics at play in the small business market and offer a personalized and tailored approach to understand and address the benefits needs of today’s small businesses

To help address cost concern, many small businesses (43 percent) say that their workers will be paying a greater share of the premium costs for insurance benefits in the future, presenting a significant opportunity for voluntary benefits solutions.

https://www.brookings.edu/articles/surging-business-formation-in-the-pandemic-causes-and-consequences/ Harnessing Growth and Seizing Opportunity: 2023 Workforce Benefits Study, LIMRA and EY, 2023

Patrick Leary, Corporate Vice President, Workplace Benefits Research LIMRA & LOMA

- senior research professional and leader focused on workforce benefits His team helps organizations develop and enhance their workforce benefits strategies by leveraging research-based insights He builds and maintains LIMRA’s workforce benefits research program; manages a team of research professionals; and conducts primary research regarding workforce benefits products, markets, and distribution

Enhancing Employee Benefit Enrollment for Small Businesses

By John Allen

In the competitive landscape of attracting and retaining top talent, small businesses face unique challenges and opportunities One unique challenge is offering a compelling employee benefits package The opportunity is dependent on the effectiveness of the enrollment strategies utilized Small groups require a nuanced approach to ensure that their benefits enrollment process is both efficient and engaging and meets each group's unique circumstances

In this article, we will explore strategies for small group enrollments:

Understand the Workforce: Before determining the benefits enrollment process, small businesses must understand the demographics and preferences of their workforce. Are they mostly young professionals, or do they span a wide age range? What type of benefits might they value the most? Conducting surveys and one-on-one meetings can provide invaluable insights into what employees need and want from their benefits package.

Simplify the Enrollment Process: Complexity is the enemy of participation. Small businesses should strive to make the enrollment process as efficient as possible This can involve utilizing user-friendly digital platforms for benefits administration, offering clear and concise educational materials, and ensuring that support is available for employees who have questions or encounter issues during the enrollment process Educate and Communicate: Lack of understanding is a significant barrier to effective benefits enrollment Small groups can overcome this by implementing comprehensive communication strategies that educate employees about the benefits available to them and how these benefits can meet their individual needs. This might include informational sessions, detailed guides, FAQs, and personalized counseling. The goal is to empower employees with the knowledge to make informed decisions.

Offer Personalized Support: In small groups, the opportunity for personalized interaction is much greater than in larger organizations Take advantage of this by offering personalized support during the enrollment period This could mean having a benefits specialist available to answer questions, assist with the enrollment process, and help employees understand how different benefits might suit their circumstances.

Leverage Technology: Technology can be a powerful tool in streamlining the enrollment process and making it more accessible to employees. Online portals, mobile apps, and automated reminders can all play a role in ensuring that the process is efficient and userfriendly. Furthermore, these tools can provide employees with the flexibility to enroll at a time and place that is convenient for them, which is particularly important in today’s increasingly remote and flexible working environments

Provide Incentives: Incentivizing benefits enrollment can significantly increase participation rates This could be in the form of rewards for early enrollment, participation in wellness programs, or simply providing ample opportunities for employees to ask questions and get involved in the benefits selection process

Small gestures of appreciation can go a long way in showing employees that their well-being is a priority

Gather Feedback and Make Improvements: Finally, the enrollment process should not be static After each enrollment period, gather feedback from employees about what worked well and what could be improved Use this feedback to enhance the process for the next cycle Continuous improvement will not only make the enrollment process more efficient over time but also signal to employees that their feedback and satisfaction are valued

Conclusion

For small businesses, the ability to attract and retain talent often depends on the quality of their benefits package and the ease with which employees can enroll. By understanding their workforce, simplifying the enrollment process, and leveraging technology and personalized support, small groups can ensure that their benefits offering is compelling and effective. A successful enrollment strategy is about more than just the mechanics of signing up; it’s about engaging employees in a way that makes them feel valued and supported

John Allen, President of EOI - 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.

Direct-to-Mobile (D2M) Enrollment for Higher Engagement and Elevated Experience

By Bradley W. Adams & Sven Thorslund

Benefits enrollment is one of the areas where insurance stakeholders often suffer from a mismatch between industry conversations and actual consumer needs The terms “digital” and ”online” have lost much of their novelty and impact to consumers They are now past “digital and online” and well into a mobilefirst mode, yet “digital and online” are frequently used by insurers to indicate customer experience (CX) innovation. While in the recent past, mobile was the backend of a product process, mobile is now the critical beginning of the consumer connection for the future. Now fulfillment Direct to Mobile (D2M) marks a new path. The shift marks a modern transition from a product / process centric past to a new consumer/connection centric future

Today’s insurance “fulfillment process” of sending confirmations, policy information and contact info for assistance and processes to insured is outdated - a tremendous opportunity for improved CX

Policy information, contacts and instructions appear as dry and dense PDF files, often from a ‘donotreply’ email At best, this hampers member experience, engagement and understanding At worst, it creates avoidable risks, losses, and liabilities Three customer experience gaps have emerged:

The Fulfillment Gap: Mailed policy/info docs or emails with .pdfs get low attention.

The App Gap: Mobile apps see few downloads and low usage.

The Engagement Gap: Insured’s are not sufficiently aware, prepared, and engaged.

The Mobile App Gap

Mobile apps were an early model with a lot of promise, but consumers quickly developed a welldocumented reluctance to adding too many apps on their phones: a concept known as “App Fatigue” In many cases, the number of downloads of apps are only in the single digits of a member population, and actual utilization tends to drop quickly over time

There may be a presumption in the organization that mobile connectivity is not an issue because “we have an app” However, statistics show only single digit retention on average for mobile apps: On average mobile apps drop from 25.3% usage Day 1 to 5.7% on Day 30. How to effectively engage the remaining 90% of members who are not on the mobile app becomes part of the key problem - and an opportunity. D2M solutions can not only engage members who would not adopt an app but can also help promote an existing app for additional ROI on those initiatives

Content & Channel Challenges

Insurers and their partners must have deep and wide content that is of value for consumers, as well as strong communications teams Consumers are interested in content that is relevant directly and indirectly to their experience with the insurance brand and its partners However, when connectivity does not widely include mobile, low reach and poor bandwidth become double hurdles to improving CX D2M makes a broader connection early in the member relationship for longer and deeper information flows. Importantly, this also allows insurers to gather data in the process.

Legacy Limitations of PDFs

Problems with traditional PDFs include: that consumers do not see them as resources for easy access to support and tend to not engage with them Yet, we still see PDFs designed for taking on the role of an insurance card, including instructions for printing and cutting out a part of the PDF and folding it into a makeshift 2-sided ID card While they may instruct members to print and keep information onhand, it is doubtful how much of this takes place in today’s digital times Some relevant questions:

How does a member retrieve that fulfillment email and pdf when needed?

Did they save the email in an email folder for easy access?

Do they go through the fifty or so page pdf to search and find and copy the email or phone number into their phone’s call or email function?

Did they take the time to print out the info and create physical folders for it?

Communication & Compliance Issues

Communication and compliance issues appear both on the consumer side and the corporate side. A few hypothetical yet relevant questions illustrate these risks and opportunities:

Can we show that the information sent was in fact received, absorbed, and acted upon per the instructions?

How does being able to track fulfillment affect the situation and the parties’ positions when a claim becomes contentious?

What if we can open new touchpoints to overcome the infrequent touches?

Can we track and improve the related efficiency gaps?

Can we remotely update documents that need changes? Can we send insureds notifications if needed?

Can we develop mobile channel CX to secure loyalty and repeat business?

The CX Case for Direct to Mobile (D2M) Fulfillment

Much of the insurance industry is in a mobile mood, but many companies are not yet in a mobile mode. An improved consumer connection from the point of fulfillment seems a smart place to begin to transfer the consumer experience onto mobile.

Fortunately, we can now meet consumer expectations for a mobile interface without needing to go to app stores. Recent developments have allowed integrating the fulfillment process with mobile phones without requiring a stand-alone mobile app download and activation process

Thanks to progressive web apps and APIs with delivery in low-code / no-code formats, it is now possible to take the full set of information from a fulfillment kit and “mobilize” it, allowing members to save it right to any smartphone’s home-screen (without a disengaging visit to an app store)

Enhancing Client Fulfillment and Engagement with D2M (Direct to Mobile)

It’s now possible to extract an insurer’s fulfillment materials - including PDFs with policies, confirmations, contact information, and instructions - and enhance them with mobile functions and features into a modern, mobile-enabled experience

The result is client custom icons on insureds’ phone screens with the features and benefits of a fully mobile set of buttons, tiles, and links, without App Store visits

This allows members to enjoy the benefits of easily engaging with, learning about, and even sharing the features of the benefits program. As part of this process, client product marketing and operational teams can ensure consistent brand experience and customer experience as an expanded and enhanced mobile fulfillment experience.

For rapid deployment, a custom QR code complements clients’ existing fulfillment emails so members can just scan the QR code to extract an enhanced and expanded mobile version of the emailed information into their phone Links and buttons activate multiple channels from the consumer’s preferred mobile touchpoint

The “mobilized” version of the fulfillment materials now includes engagement benefits such as push notifications and automatic remote updates. Every resource included becomes a clickable action, not a contact data point one needs to retrieve, manually copy, paste, enter, activate and save

Having a shortcut on the mobile home screen with full access to an enhanced program and experience gives it the useful convenience of an app without the distracting setup

Mobile Notifications and KPI Dashboards Unlock New CX Dimensions

Insurers and administrators are now able to remotely update documents, as well as send initiative-taking notifications to mobile phones and measure their impact

A dashboard can also track the number of downloads of fulfillment material and the quantity and types of mobile engagements

The notifications can also be engaging messages like surveys for interim feedback to help guide service management. This is a previously unrealized interaction in the sometimes very wide gap between purchasing a policy and using it. Clients’ creativity and strategy will open new opportunities to build engagement which aligns the brand to members’ expectations.

D2M Implementation Impact

D2M solutions allow next level connectivity and communication to help inform members, allow them to quickly obtain answers, access solutions and easily inform dependents D2M enables enhanced services along with proactive alerts around information and processes before, during and after services and claims Other new dimensions of the relationships come from enabling feedback at multiple points in the relationship via VoC or NPS or CSAT and to build differentiation, loyalty, and repeat purchases in a mobilefirst experience environment

Next-Level Engagement and CX

From here, the member relationship can expand in line with insurers’ steps towards a more engaged customer experience. Examples can include integrating third party services, solutions, and offers, as well as opening part of insurers internal process (like claims) for mobile customer integration. Enhancement opportunities include:

Design leading customer experiences and engagement.

Turn new CX into elevated EX through redefined processes

Redefine differentiated value as part of evolving program, partner, sales and product strategies tied to mobile CX

Be the preferred brand insureds and partners do more business and repeat business with

The stage is set for realizing the digital dreams of connected consumers and companies in a new era where mobile fulfillment is critical for CX, differentiation, compliance, and engagement

Enabling Elevated Engagement Through Existing Enterprise Experience

The company committed to customer experience will find that the requirements for getting there offer regeneration and growth The delivery must capture experience and engagement from a cross section of senior leaders who apply skills and insights in new ways The leadership around product and consumer and relationships will transform in line with the new fundamentals: information experts will become product differentiation experts, product managers will become insurtech ecosystem curators, and customer service leaders will become client engagement and experience strategists

Small moves can prove big wins

Creating additional touch points becomes a priority when you consider that insureds have infrequent interactions with carriers If the only planned touch point is the claims process, the interactions are few and have a high chance of showing dissatisfaction If the CX strategy builds new touch points for a designed level of added value, insurers are ahead of the feedback curve This also includes being able to include checkpoints for satisfaction during the journey

Setting the stage for scaled innovation

A wider and deeper engagement before, during, and especially after purchase allows better ROI on innovations Initiatives which previously seemed difficult to prioritize can now receive added CX investments

A Compelling Case for Urgency with Rapid ROI

Improved efficiency and effectiveness have centered around doing more of the same with less. Today, the industry is reaching diminishing returns in standard process improvements. We now see leading thinkers behind efficiency and effectiveness changing their focus over to a CX centered approach.

Mobile can no longer be secondary to product. It now becomes the beginning of a new consumer centricity. This drives a shift in an insurance company's “operating system” as product and process legacies now evolve into the next level of consumer centric commitment.

Bradley W. Adams, Co-Founder of Aerogami - As a visionary and engaging expert, he is a sought-after global conference speaker and panelist Based in Providence, RI, Bradley holds a BA in Entrepreneurship, Finance and Analytics from Bryant University His core specialties include partnership development, product development, and user experience

Sven Thorslund, MBA, MIM, Growth Advisor, Aerogami - Sven is the Insurance Lead and Advisor. His experience includes adding services to the products and processes of US and international insurers. He holds an MBA from Sweden and a Masters of International Management from Thunderbird School of Global Management in Phoenix, AZ.

Bridging the Gap Between Financial Stress and Future Security

By Jeremy Parr & Brad Reilly

Stress is a constant in everyone’s life. While a bit of stress can increase alertness and performance, too much can have the opposite effect, negatively impacting employees’ engagement, productivity, and most importantly, their health.

As both an employee benefits and retirement provider, Lincoln is closely attuned to the ramifications of financial stress on today’s workforce We’ve conducted a series of studies that focus on employees’ priorities and challenges, gaining important insights about the choices employees make to cope with financial stress, the effect of those choices, and what our industry can do in response

First, and unsurprisingly, we found that finances play a significant role in a person’s level of stress, with respondents to our recent Wellness@Work survey stating that financial worries are their biggest source of stress What are the tangible effects of financial stress? Our surveys found that:

34% of workers incurred major or moderate medical expenses over the past two or three years

35% of workers spent some or all of their emergency fund money

24% of workers have student loan debt

Current expenses present competing financial priorities including medical debt, student debt, and everyday bills such as transportation and childcare, which are increasingly difficult for employees to juggle

Medical debt can be especially daunting, even for those with health insurance. The top inflationary component in the U.S. economy for the past 20 years has been hospital services. Our survey results show the effect: One in two study respondents say it would be difficult for them to pay for a serious illness, despite having health insurance. Even an out-of-pocket expense of $500 would present a financial hardship for 45% of respondents

Different Generations; Different Concerns

Younger workers were the most likely to say they’re highly stressed, with workers in their 20s being more than two times as likely to report high levels of stress than workers in their 60s

Students loans affect every generation, but disproportionately impact millennials and Gen Z, with one in three from those generations dealing with student loan debt

Gen Z and millennials are more likely to say they’ve faced moderate to major medical expenses in the past few years.

When employees struggle to pay for medical and other expenses, they may not have enough left over to adequately plan for retirement. Our Lincoln survey found that 22% of retirement plan participants decreased their contributions in 2023, and 14% of nonparticipants said they were previously saving but had to stop in the past year Not surprisingly, 77% of participants who say they saved less than needed to be on track with their retirement plans cite inflation as a reason

The Voluntary Coverages Employees Want

There is a high level of interest in supplemental voluntary insurance

Critical

Illness Insurance

Hospital Indemnity Insurance Accident Insurance

Less Confidence in their Financial Future

The percentage of retirement plan participants who’re extremely or very confident they’ll be financially ready for retirement has noticeably decreased from 2019 to 2023, dropping from 35% to 22%

It’s a challenging situation, but it’s also an opportunity for employers to take initiative They can provide the solutions and education employees need to handle today’s financial stress and ensure tomorrow’s financial security

Unexpected Doesn't Equal Unprepared: How Employers Can Help

Employees often feel unable to cope with unanticipated economic fluctuations and increases in their expenses. However, just because an expense is unexpected doesn’t mean employees need to be unprepared.

Employers can help by providing not only health insurance but also supplemental voluntary benefits that can help bridge the gap between what a healthcare plan pays and the out-of-pocket expenses employees may be responsible for

An unexpected injury that comes with a visit to the emergency room, follow-up testing and appointments, a chronic illness requiring specialized care, or a procedure or operation necessitating a hospital stay are common occurrences can have a sizable impact on both current savings and future contributions It’s essential to make sure employees understand how the cash benefits provided by voluntary benefits can make a difference

When asked what they’d most want a supplemental benefit to cover, the top answer was chronic or serious illnesses, especially cancer.

Many responses mentioned how personal experiences with these diseases made them more aware of their potential costs Additionally, 80% of respondents say that supplemental health insurance would have a positive impact on their finances

However, despite this interest and overall positive impression of voluntary coverage, only 30% of respondents are enrolled in at least one supplemental benefit Why is there such a significant gap between employees’ interest and their enrollment? It comes down to perceptions and misconceptions about what voluntary insurance covers and how much it costs

Misconception #1: Cost

Affordability is the #1 reason employees enroll, and choose not to enroll, in voluntary coverages. There’s a perception among those who don’t enroll that supplemental benefits are unaffordable, even though, among those who are enrolled, the most common reason for enrollment was affordability.

Misconception #2: Coverage

Another notable misconception concerns what voluntary benefits cover Over half (54%) of respondents incorrectly believe that these benefits are designed only for people who already have specific health issues

Providing Flexibility and Empowerment

Today’s workforce is seeking flexibility, not just when it comes to when or where they work, but also when it comes to their employee benefits package Employers who provide a selection of voluntary benefits such as accident, critical illness and hospital indemnity insurance are inspiring individual employees to make the choices that work best for their priorities and needs.

Delivering Personalized Education

Providing access is just the first step The next essential step is to ensure that employees fully understand what’s covered, and how they can benefit Employees often stick with what’s familiar, choosing to select the same benefits year after year because they’d rather not take a chance with something new When asked, 54% of respondents said they would enroll in more benefits if they understood them better Whether choosing an additional benefit such as voluntary insurance or considering a higher contribution to their retirement plan, being comfortable and confident in their decisions will lead to a more proactive and informed approach to benefit selection.

How to best reach your employees with the information they need? There’s no one right answer. When asked how they’d prefer to receive benefit information, a quarter prefer self-service digital tools, a quarter prefer speaking directly to experts, and four in 10 are somewhere in the middle.

One thing that almost everyone agreed on, though, was a combination of those two options; 86% expressed interest in a self-service tool that includes the ability to speak with an expert via live chat, and 46% were very interested

Today’s Choices Support Tomorrow’s Plans

Providing your workforce with a comprehensive benefits package including voluntary coverage such as accident, critical illness, and hospital indemnity can play a role not only in helping to control today’s expenses and debt, but also in making it possible for employees to stay on track when it comes to planning for a financially secure future

1 All information provided in this article is from the 2022 Wellness@Work: Group Benefits and 2023 Wellness@Work: Retirement Plan Services surveys The Group Benefits study is based on a national survey of 2,503 full-time workers who have access to insurance benefits (at least one of the following: disability, life, dental, vision, critical illness, accident, or hospital indemnity) through their employer The retirement plan services study is based on a national survey of 2,604 full-time workers who’re eligible to contribute to an employersponsored retirement plan, including 2,104 participants and 500 non-participants Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates Affiliates are separately responsible for their own financial and contractual obligations.

LCN-6376189-020724

Lincoln Financial

Brad Reilly

Sr. Consultant Voluntary Benefits

Lincoln Financial Group

Jeremy Parr

National Voluntary Benefits Practice Lead

Group

New York Proposes Payroll Tax to Fund Long Term Care Benefit

As a wave of older Americans face the real possibility of needing long term care, the New York legislature is considering once again funding a modest amount of state-provided long-term care (LTC) coverage financed through a payroll tax on most workers in the state

There are still many questions about details on the full legislation and administration should this bill be passed However, the nation’s fourth most populous state has taken legislative steps to explore the possibility of offering a public long term care benefit.

New York State considered this possibility with draft legislation as recently as 2022, which did not pass the legislature. This 2023 bill is very similar to the 2022 legislation with an attempt to develop an LTC payroll tax, public benefit amount, and private long term care exemption with direct references to the Washington State LTC payroll tax.

By Marc Glickman, FSA, CLTC

Key Takeaways of the Proposed Legislation:

LTC payroll tax similar to Washington State with a modest payroll tax yet undefined to make the program self-sustaining, but with references to the 058% of wages in the Washington LTC payroll tax May provide for an exemption from the obligation to pay premiums and receive benefits for individuals who have maintained private long term care insurance on an uninterrupted basis beginning no later than January first of the year in which the act takes effect.

Private long term care insurance solutions that qualify for exemption are defined by New York law. This section refers to qualified long-term care insurance contracts as defined in section 7702B of the internal revenue code

Other NY LTC payroll tax exemptions include individuals who maintain a permanent residence outside of the state of New York, US military veteran with a service-connected disability of seventy percent or greater; a spouse or registered partner of an active duty service member; an employee with a non-immigrant visa for temporary workers

Other Legislation Details

An individual must "earn" the benefit by working at least ten years during their lifetime Premium contributions collected similar to income tax withholding for employees and income tax payments by self-employed individuals

Premium contributions set at the lowest amount necessary to maintain the program on sound financial footing

Important Benefit Information as Proposed NY LTC Trust program would provide universal long term care benefits at an initial rate of $100 per day for a lifetime limit of 365 days’ worth of benefits

To qualify for benefits, the individual then must prove that they need assistance with at least two activities of daily living

Help Employees Start a Long Term Care Plan

We do not know yet whether this NY LTC payroll tax bill will become law and when it will become effective. However, it would be a good time to propose LTC insurance now as an employee benefit because of our experience in Washington. There may be fewer LTC insurance options in New York than in other states. As we discovered in Washington, when there is sudden demand, the supply of private insurance products may not adequately support all the demand In Washington, many carriers pulled out of the market, there were significant underwriting delays, and the carriers pulled some of their richest LTC features and imposed minimum benefit requirements

A Life Insurance or Long-Term Care Product That Fits Employee Needs and Budget

At BuddyIns, we recommend obtaining meaningful coverage rather than just enough to possibly qualify for a state exemption What does that mean? Meaningful coverage provides the insurance benefits that may best cover the risks

The cost is affordable, and it is a plan that someone can financially manage over their lifetime The most popular solutions in Washington came from not only affordable LTCi-focused coverage but also life insurance coverage with LTC riders Younger clients who did not have their life insurance plans used the WA payroll tax as an opportunity to protect their families with affordable hybrid policies.

The ideal candidate to purchase long-term care insurance or life insurance is someone who would have pursued coverage regardless of the payroll tax. They may now decide to buy sooner than they would have because of proposed government programs and the ability to opt-out or supplement the state benefits

Higher earners with more income and assets to protect may see the best value from purchasing a private plan It’s also possible for employers to do an executive carve out If a proposed payroll tax is a percentage of all wages, like in WA, a higher earner could pay more into the payroll tax than they could get in benefits

For example, a 40-year-old employee is making $200,000 per year and expects her wages to grow 3% per year If she retires at age 65, she will have put in a projected $42,293 over 25 years If the lifetime maximum is similar to the Washington State benefit, it will be around $36,500 with nominal increases.

One should never purchase a long term care insurance policy solely for the purpose of opting out of a proposed payroll tax. Reach out to a long-term care specialist if you would like to begin the planning process. Even if you are not ready to purchase yet, understanding your options and meeting with an LTCi specialist will allow you to act more quickly later

Marc Glickman, FSA, CLTC, 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 8182645464, or by visiting wwwbuddyinscom/partner

Practical Wisdom from a Modern Day Mentor

By Steve Clabaugh, CLU, ChFC

It has been a privilege to have benefitted from several mentors in my life who have influenced my understanding about relationships, work and life itself Their impact has been so significant to me that, over the years, it has been my practice to reach out to those men and women and to thank them for their wisdom and support. One individual who has influenced my career more than any other person is David C. Moore.

Dave was born and raised in Maquoketa, IA, an agricultural community in Eastern Iowa on the banks of the Maquoketa River He graduated with a Bachelor of Science Degree from Northwest Missouri State University and later, as an insurance professional, completed the LIMRA Leadership Institute Fellow program earning the highly sought LLIF designation for corporate leaders

Dave was the first group product leader ever to be chosen as Chairman of LIMRA When I first met Dave, he was President, Ameritas Life Insurance Corporation – Dental Division He retired as President/CEO of Ameritas Life Insurance Corporation

Even though we basically grew up in the same “neck of the woods,” we didn’t meet until almost 30 years after I graduated from high school in DeWitt, IA just 19 miles south of Maquoketa.

We met on an airplane that was stuck on the tarmac in Chicago during a mid-December snowstorm I was returning home from my last business trip of the year, just before Christmas, when I was seated beside a kind and friendly businessman from Lincoln, NE. He initiated a conversation, most likely to pass the time while waiting for our plane to be de-iced, by asking “what do you do for a living?”

There must be something to the idea that core values are often related back to the culture of where a person is from because I felt, almost instantly, comfortable with his communication style and approach to life and business Dave learned very quickly that I am passionate about worksite benefits as I shared with him what we believed in and how we tried to serve our employer and employee clients He told me about his work leading the Dental Division at Ameritas and asked a lot of questions about our business

What has most impressed me about Dave during that first meeting and in the 24 years since is the way he thinks and talks differently about business than anyone else I’ve ever met I was used to hearing and talking about product design, pricing, commissions, incentives, sales materials and so on. Dave understood all those subjects, but he believed that critical success factors, shared vision, alignment of key stakeholders, team dynamics, best practices and championship team behavior came before the details of product and pricing.

He was then and is now, about understanding that if you get culture right the rest will follow as a natural result His team at Ameritas proved that the priority of “culture first” works - during his tenure they consistently produced 15% annual growth through a combination of organic sales and block acquisitions

I was very impressed by this gentleman who was so gracious, knowledgeable and focused on the importance of organizational culture By the time we landed a few hours later, he had invited me to come and share the same information with his senior staff I found them to be just as passionate as he was about being a championship team It wasn’t long after that meeting when I was privileged to join the team undertaking the challenge of creating a prospective new business as part of the Ameritas family.

Working with Dave, I learned the principles of Championship Team Behavior and saw how they worked in a high-performance team environment. He instilled in all of us, as his direct reports, the values that we have taken with us to responsibilities and organizations throughout the insurance industry at large Dave had retired from Ameritas by the time I became CEO of a small Mid-Western life insurance company, so I was able to hire him as a consultant to help guide us in the development of our relational leadership culture His work together with our leaders played no small part in our achievement of doubling the size of the company, and more than tripling profits in less than 5 years

The combination of Championship Team Behavior along with the other tenets of Relational Leadership have added a whole new level of effectiveness in creating a positive achieving culture.

It is this combination that I was able to introduce and implement in the voluntary benefits industry and now offer to a wide variety of businesses from retail operations, educational institutions and manufacturing companies. All good teachers and students recognize the need for periodic review of the lessons taught and learned With that in mind, I recently had the privilege of spending some time with Dave talking about the important principles he taught and modeled for us during a career that saw outstanding results in maximizing organizational results and building strong leaders for the future (most of whom still care about each other today)

Dave & Marge Moore

Here are some of the lessons he shared that are very well worth sharing with you as today’s industry leaders I have primarily used Dave’s own words with some editing for clarity

What is a Championship Team?

Best performing business models include plans that integrate individual business skills and competencies with other team members Before you launch your business model to your chosen markets and customers, it is critical that you have the right people “on the bus” that are committed to working with each other to deliver best in class outcomes.

Best practice models will include personality profiles to help produce best outcomes. This helps leaders, managers and workers integrate personality profile differences and deliver best results for all key stakeholders This is important because any two team members who have natural negative personality vibes need to find middle ground (a negotiated relationship) that will produce the best business outcomes This is not always easy, but it is an important leadership skill needed to deliver the best results

When Does a Championship Team Function at its Best?

When you have all of your critical business alignments completed, you will then need to get your business model performing at a “best practice” level. Championship team behavioral skills and competencies are critical at all levels in “best practices” companies. This means starting with your leadership team including necessary negotiated relationships at that level. When negotiated relationships are a required practice at all levels in an organization you will most likely see a high performing company delivering targeted results Finally, you move your championship team model down into your organization, so it connects both vertically and horizontally, to create best outcomes for all key stakeholders

During our recent discussion, Dave also reminded me of other important lessons about defining the business, market and customer focus, products and services, distribution systems and customer service excellence. I will save some of that wisdom for inclusion in future articles.

This month’s article tells you a bit about some of the knowledge and wisdom behind Relational Leadership Experience (RLE). I hope it also does credit in recognizing a small part of the significant impact on our industry by the man I am privileged to call my mentor, and more importantly, my friend

As always, please feel free to contact me if you would like one of our program flyers or to discuss how RLE can benefit your company or that of your client companies

RELATIONALLEADERSHIP EXPERIENCE

CanitHelpYourEmployerClients?

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