Group Insurers’ Use of Third-Party Enrollment Platforms Will Continue to Increase

New Novarica report on business and technology trends highlights the importance of supporting enrollment processes via any device

Boston, MA (Mar. 2, 2021) – With younger generations entering the workforce, group life and voluntary benefits are the introduction to accident, health, disability, and life insurance for many employees. Many insurers are looking to build scale and efficiency quickly while gaining share in a market that is already concentrated among a relatively small number of insurers. In a new Business and Technology Trends report, Group Life and Voluntary Benefits, research and advisory firm Novarica provides an overview of group life and voluntary/worksite insurer business and technology issues, data about the marketplace, and more than a dozen examples of recent technology investments by insurers.

“The voluntary benefits market has become more attractive as responsibility has shifted from employer to employee for many health-related insurance products,” said Rob McIsaac, Executive Vice President of Research and Consulting, and co-author of Novarica’s new report. “It is common for employers to view voluntary/worksite products as ‘no-cost’ benefit solutions, enhancing the attractiveness of associating with the group.”

Key points and findings:

  • Sales growth is robust for voluntary lines. Critical illness, accident, and term life products are showing strong growth. Dental and vision care offerings are gaining attention.
  • Analytics are widely used for voluntary products. Applications include enrollment, identifying claims fraud, member conservation, sales reporting, and underwriting.
  • With no clear standard for group life and voluntary benefits information exchange, insurers are considering their next move. LIMRA has worked with insurers and vendors on post-enrollment standards, and InsureTechs may also offer solutions.
  • Group and voluntary/worksite insurers are exploring partnerships or other relationships with benefits administration and enrollment players. This is based on a desire to differentiate through customer experience and to combat potential disintermediation.

Click here for the table of contents or to access the report.

Report Summary

Group life and voluntary benefits insurers are looking to build scale and efficiency quickly while gaining share in a market that is already concentrated among a relatively small number of insurers. This report provides an overview of group life and voluntary benefits provider business and technology issues, data about the marketplace, and more than a dozen named examples of recent technology investments. Insurers are investing in front-end and core systems capabilities across the board, including benefit and policy administration systems as well as distribution enablers.

Topics

  • Recent market and financial trends
  • Active insurer landscape
  • Technology issues, priorities, and examples by functional area
  • Top technology priorities for 2021 and beyond

Click here for the table of contents or to access the report.

About Novarica

Novarica helps more than 100 insurers make better decisions about technology projects and strategy. Its research covers trends, best practices, and vendors, leveraging relationships with more than 300 insurer CIO members of its Research Council. Its advisory services provide enterprise phone and email consultations on any topic for a fixed annual fee. Consulting services range from assessments and strategic roadmaps to vendor evaluations. For more information, visit www.novarica.com.

Source: Novarica

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