Technology and digital solutions play a critical role in theadministration and service of voluntary benefits. The COVID-19pandemic has reinforced the importance of digital solutions, and in many ways,accelerated trends already underway.

Carriers and other providers, however, have limited resources toallocate to their technology investments. Where should they focustheir efforts? Those organizations that can effectively align theirofferings to the needs of the voluntary marketplace willdifferentiate themselves from the competition.

What do employers value most? Cost and plan features are oftenthe drivers of carrier choice. But when all else is equal, it is inother areas such as customer service, benefits administrationtechnology, and sales and enrollment support that organizations candistinguish themselves to create a competitive advantage. Relativeto voluntary benefits, what do employers value most when it comesto the digital services that carriers provide to them and theiremployees? LIMRA recently surveyed over 1,400 employers to findout.

Table stakes

Digital solutions are commonplace in the administration ofvoluntary benefits. LIMRA research shows that a wide array ofdigital services used to administer voluntary benefits plans areavailable to employers. For example, more than 9 in 10 employershave access to online billing and downloadable plan documents,while tools such as electronic claim submissions and dedicated webportals to administer benefits are almost as common.

Related: The "new normal" in voluntarybenefits

Mobile capabilities for benefits administration (e.g., censusupdates, life event changes, generating reports, etc.) and web chatare available to more than 7 in 10 employers. In general, employersare satisfied with the digital tools they use to administer theirplans. Likewise, LIMRA research shows employers are happy with thequality of the digital tools made available to their employees.More than 8 in 10 employers rate the digital tools and servicesavailable to their employees as either 'good' or 'very good.'

Opportunity knocking

While many employers and their employees have access to thesedigital tools, there is an opportunity to gain better adoption.Services such as the ability for employees to download forms,access online educational materials, check electronic claim status,and complete and submit forms online are broadly available in themarketplace, yet there are still a significant number of employersthat don't have them, but want them.

While more than 70 percent of employers indicate that theiremployees can access online educational materials, an additional 26percent would like their employees to have this ability. This isthe digital service capability most desired by employers that don'talready have it. Recent LIMRA research shows digital services thathave arrived more recently in the marketplace (e.g., formlessclaims submissions, text message notifications, mobile plan access,and web chat) are also appealing; many employers (regardless oftheir number of employees) do not have these tools available tothem, but want them (Figure 1).

Figure 1: Digital Tools and Services for EmployeeUse

               Source: Unpublished LIMRA Employer Research, 2020

In today's environment, it is more critical than ever forcarriers, intermediaries, and other organizations to understandwhich tools employers — and their employees — need and use relativeto voluntary benefits service and administration. LIMRA researchprovides valuable insights into how organizations can identify newopportunities around technology and digital solutions to helpemployers better manage their plans and enhance employees' customerexperience. Organizations that can focus their efforts andinvestments in areas of most value to employers and their employeeswill create unique value in the marketplace. Will your clients beamong them?

Patrick T. Leary, M.B.A., LLIF, is corporate vice president,workplace benefits research for LIMRA. This program providesresearch on the employee benefits marketplace, focusing on theproducts, markets, and distribution of a wide range of life, healthand related employee benefits.