The Growing Demand for Voluntary Benefits 

In 2020, 45% of employers enhanced their voluntary benefits including healthcare and non-healthcare. That’s a 5-point increase over the previous year, according to a study by Gallagher. 
 
Eastbridge Consulting has released a flurry of recent studies to shine a light on the growing voluntary benefits market. One study finds that 80% of carriers that set production goals, increased these goals over the past few years. In 2020, 50% expect their reps to produce $1 million to $2.9 million in voluntary sales annually, though this percentage is down from 69% of carriers in the 2016 study. Another 45% of carriers have production expectations of $3 million or more from their reps, which is up significantly from 11% of carriers in 2016.
 
Another recent Eastbridge study finds that most voluntary carriers report that participation rates have stayed the same or increased. Carriers site a renewed focus on voluntary products, more effective enrollment technology, working conditions, marketing/education tools, and targeted distribution strategies. 
 
Smaller cases continue to have higher participation levels compared to larger cases. More than half the carriers surveyed prefer active enrollments (an employee must make a yes/no decision). Average participation, on a product level, has increased for seven of the 11 voluntary product lines compared to the 2017 study.
 
Eastbridge research also reveals employers' top reasons for selecting a voluntary carrier:

• Product price/value 
• Ease of administration 
• Carrier support of claims integration across all products

 
Since 2016, employers have put greater importance on the following:

• Tools, calculators, and benefits advice
• The range of voluntary products available from the same carrier
• Carrier help with a communications and enrollment strategy
• Recommendations from their broker or agent

 
These two factors become increasingly important as the size of the employer increases:

1. Financial support from the carrier to build their products on the employer’s ben-admin system
2. A carrier website that gives employees access to claims forms as well as status and coverage information

 
Contact your LISI Regional Sales Representative on how CoPower can check all the employer’s boxes with ease of administration and a variety of popular plan choices.