Design by Chris Nicholls
The song may sound the same, but it’s got an encouraging new verse: Sales, expectations and optimism continue to rise for most brokers in the voluntary/ worksite market, according to the 2024 BenefitsPRO/Eastbridge Consulting Group study of voluntary benefits producers. Here’s a look at the survey’s high notes:
Sales are up for most brokers over the past year.
More than half (56%) of brokers surveyed report their 2023 sales were higher than in 2022 — much higher for 11% of them. And another third say sales are holding steady. Only 1 in 10 had lower sales last year.
Voluntary business will continue to grow.
Brokers expect voluntary to become a bigger part of their business in the future: 85% of those surveyed say that the business line will grow, and most of the rest say it’ll remain stable.
Accident, critical illness, short-term disability, term life and dental are the top-selling products.
Hospital indemnity and vision coverage also are top sellers for some brokers.
Brokers leaning toward using a single carrier.
Most brokers say they use a single carrier for voluntary products and other product lines, either the carrier that provides the employer’s medical plan or the carrier that provides other employer-funded group products. However, more than half of brokers say they select the best products for each client, even if it means using multiple carriers, while 28% use a single carrier to simplify issue, billing and servicing.
Onsite meetings are used more often than any other enrollment method.
Self-service enrollment is still the most common single method, but all forms of onsite meetings combined— individually, in a group, or group meetings followed by one-on- one meetings—are used even more frequently.
Brokers prefer a carrier’s products to already be built on a benefit technology platform.
About half (52%) of all brokers surveyed indicate it’s important for a carrier’s products to be prebuilt on a benefit technology platform. That includes 30% who say it’s extremely important, a 50% jump from last year’s study. Less than a third (28%) say that it’s a nice-to- have, but doesn’t change their decision on which carrier to use, a number significantly lower than in 2022.
Brokers continue to focus on tech fee support from carriers.
While just 15% of brokers give preference to the carrier offering the most fee support, 23% of brokers usually ask multiple carriers to pay a portion of the fees, and 18% look for a carrier that already has pre-existing arrangements with a benefit technology platform.
Product features and service are the most important criteria for brokers selecting or changing carriers.
More than one-third of brokers name product features and benefits (40%) or administration and service (39%) as their top criteria for selecting a voluntary carrier. Similar numbers of brokers say claims integration is a deciding factor in determining which carrier to do business with (40%) and the employers they work with expect carriers to support claims integration (41%). On the flip side, about a third of brokers (34%) list brand, the carrier’s ability to provide employer-paid or medical products, and compensation as their least important criteria.
More brokers are switching carriers.
The number of brokers who report they’ve changed their top three carriers in the past one to three years is up significantly, from 30% a year ago to 41% in this year’s study. The top reason for changing carriers is service issues (56%), followed by developing a relationship with a new carrier’s sales rep or staff (40%) and lower prices (38%).
Brokers almost universally say employee enthusiasm for voluntary products will continue or grow.
Nearly all brokers surveyed say employees (96%) and employers (94%) will be as or more enthusiastic about voluntary products 12 months from now. About half of brokers (49%) think inflation will drive greater enthusiasm for employers—an increase of 10 percentage points from last year—while slightly fewer (43%) think inflation will have the same effect on employees.
Inflation remains a top concern for brokers.
Despite their optimistic outlook about enthusiasm for voluntary products, 70% of brokers still cite inflation’s impact on employee wallet share as their biggest concern about the voluntary benefits industry today, up from 41% just a year ago. Other concerns brokers say have increased in the past year include lack of access to employees (up from 22% to 31%) and increased competition from other brokers (up from 16% to 25%). It’s clear brokers still have concerns about some trends they see and their ability to compete successfully in the voluntary market. But overall the survey shows an upbeat attitude about the industry’s future—and that sounds like a pretty catchy tune.
2024
Voluntary
Survey
T
2023 Voluntary/worksite sales
Much higher than 2022 sales
Higher than 2022 sales
About the same as 2022 sales
Lower than 2022 sales
Much lower than 2022 sales
11%
45%
34%
8%
2%
1%
0%
15%
67%
8%
Decreasing significantly
Decreasing
Stable/no change
Increasing
Increasing significantly
Future expectation of voluntary/ worksite business lines
27%
27%
Online self-service
2023 2022
Most frequently used enrollment methods
23%
20%
10%
10%
6%
10%
7%
8%
7%
7%
6%
6%
7%
5%
6%
3%
1%
4%
Onsite 1-1 meetings
Onsite group meetings followed by onsite 1-1 meetings
Onsite group meetings
Call center
Virtual 1-1 meetings
Virtual group meetings
Virtual group meetings followed by virtual 1-1 meetings
Self-enroll on paper
Other
8%
10%
Not that important
36%
28%
Nice-to-have but doesn’t affect carrier selection
35%
32%
Very important: All else equal, select carrier with products built on platform
20%
30%
Extremely important: Look for carriers with product built on platforms
2023 2022
Importance of carriers’ products being built on technology platform
15%
Generally give preference to carrier offering the most
BROKERs’ APPROACHes TO CARRIER SUBSIDIES
23%
Usually ask multiple carriers to pay a portion of fees
18%
Look for carriers with pre-existing arrangements with ben admin platforms
39%
Don’t really focus on fee support and go with best product, but if carrier also offers fee support, that’s great
5%
Other
Much less
A little less
Same
A little more
Much more
Enthusiasm about voluntary products in next 12 months
Employees Employers
18%
17%
39%
40%
39%
39%
4%
3%
2%
2%
Survey
Voluntary
2024