Similar to our previous surveys, the top six voluntary products owned in this year’s MarketVision™ — The Employee Viewpoint©Spotlight™ Report were whole/universal life, term life, accident, dental, vision, and short-term disability. Two-thirds of employees continue to own more than one voluntary product. Employees working for businesses with fewer than 1,000 employees are more likely to own more than one voluntary product.
The new Spotlight™ Report provides readers with details on these and other topics helping carriers understand and improve their employee value proposition.
Excellence in the administration of voluntary products is essential for any carrier to be competitive and have longevity in the voluntary/worksite marketplace. The purpose of the Administrative Practices of Voluntary Carriers Spotlight™ Report is to provide detailed information on key carrier administration practices so carriers can compare their own voluntary administration practices with the competition and determine changes needed to remain up to date on key service and administration trends.
WITH THE ABUNDANCE of technology service providers vying for your employer clients’ attention, making decisions using bad data or alluring sales propositions can leave employers vulnerable. Payroll vendors, enrollment and benefits-administration platform providers and billing services promise cost-effective, efficient and effective solutions to ease an employer’s pain points. It’s not to say that these technologies will or will not deliver what they promise, but an important element in the decision-making process must be the preferences of employees.
MORE AND MORE we find that employers want to use the same system to enroll voluntary that they use for other benefits. In fact, 63 percent of the 1,000 employers surveyed last year in our Market-Vision: The Employer Viewpoint survey, said they want all benefits enrolled on one platform regardless of whether different carriers are used. More than half said that they want online enrollment to be part of their ben admin system rather than a separate system.
YOU’VE MADE THE sale and the employer has said, “Yes, let’s add the newly proposed voluntary benefit.” But of course, we haven’t sold anything until we get employees to elect. The most successful brokers make sure that when selling a product into a case, they include the enrollment method to be used.
This is the last in our series of columns on the voluntary industry sales results for 2018. The first article looked at overall voluntary sales for the year, while the second reviewed sales by product line and platform. This column takes a closer look at sales by distribution segment.
Last month, we reported that voluntary new business annualized premium sales for 2018 was $8.5 billion, but since that time, the results have been updated to $8.513 billion, up 4.5 percent over 2017 sales. This article spotlights sales by product line and platform.
According to our annual U.S. Voluntary/Worksite Sales Report, new business annualized premium (voluntary sales) increased at a rate of just over 4 percent in 2018, while total sales for the year were $8.5 billion. The first graph below shows the industry’s sales since 1997.