Market Update: Disability Insurance By Heather & Trevor Garbers May is Disability Insurance Awareness Month. To help drive awareness of this valuable benefit, we have interviewed a panel of experts to get their guidance on current trends and the future of the marketplace. Here is what Jessica Moser (JM) – VP Workplace Solutions at Aflac’s Premier Life, Absence and Disability; Brad Maddock (BM) - Regional Manager, Mutual of Omaha; Meghan Shea (MS) - VP Head of Strategy and Solutions at New York Life Group Benefit Solutions; and John Labrie (JL) - AVP Product & Market Development, Unum & Colonial Life, had to say. Some form of disability insurance has been around since the Middle Ages - what is trending in the world of disability insurance today? MS - We are seeing a few key themes impacting both employers and their people including the increasing prevalence of mental health conditions, the role of technology and the regulatory landscape related to paid leave. In terms of technology, we’re seeing a growing expectation from employers around increased visibility into their disability program, tools that make the claims experience easier for their employees and the ability to access detailed activity and status quickly and seamlessly. Finally, we know the leave landscape is becoming increasingly complex. Historically, employers needed to navigate only a handful of leave programs, but today they are navigating an ever-increasing combination of federal, state, municipal and company-specific leaves that vary from state-tostate. BM - We are seeing trends toward richer benefit programs in lieu of richer compensation pay due to the competitive job market. Many groups are looking to make employer paid benefits tax free (gross up or tax choice plans) vs. the traditional taxable benefit.
JL – We are seeing a couple of different trends, 1) creating a better digital experience for employers and employees - it is increasingly important that disability providers digitally connect with employers and employees from the time of enrollment to the time of claim. This connection is typically a win-win for all - ease of administration for employers, faster payments for claimants, and higher customer satisfaction and retention. 2) State Paid Leave programs - The increase of states adopting mandated paid leave plans presents an opportunity for disability providers. These state programs are highlighting the importance and need for disability coverage. This increased awareness will grow consumer interest nationally on the value of this coverage, and there are opportunities to provide coverage above and beyond the state mandated plans. JM – I’ll start with statutory leaves, given the increasing number of various emerging paid statutory leaves, employers are modifying their disability programs and making adjustments in their current offerings to align with what best serves their employees in various states. Next, I would say, tech, tech, tech - no surprise, the increased use and innovation with technology continues to trend. What has changed a bit, is the type of technology and why. First, there’s more of a recognized need for strategic reporting to help employers identify clients’ trends and gaps, and a growing need for true consultative reporting based on carrier analytics. The need for AI continues to grow, particularly for underwriting shops and ease of claims administration, especially in disability, due to its complexity.
