The expectations and preferences of tomorrow’s health care consumers are changing the way our industry approaches nearly every aspect of employee benefits, and we must all adjust our strategies in order to stay relevant and competitive. From benefits education to product offerings and the user experience, next-generation consumers have higher expectations than those before them. Benefits brokers and agents who want to thrive in the ever-changing benefits landscape can look to industry insights and market trends to make the necessary adjustments that can help ensure they effectively reach next-generation consumers.
Meet the next-generation consumer
A vision of the future consumer has come into clear focus. In the first quarter of 2015, millennials — born from the early 1980s to the mid-1990s — officially replaced Generation X as the largest segment of the American workforce. More than 1 in 3 American workers today are millennials. Fast forward to 2025 and millennials will account for 75 percent of the workforce, and not far behind them is Generation Z — those born after 1995 — who are entering the workforce now and are expected to make up 20 percent of workers in less than five years. Their values, expectations and attitudes are reshaping how future health care products and services are marketed and delivered. For benefits advisers, this new reality means adapting to a new generation of health insurance consumers.
According to Aflac’s Healthcare 2025 Report, as more of these next-generation consumers enter the workforce and begin making health care decisions, their expectations of health insurance providers will mirror what they’ve come to expect from other companies. They’ll anticipate a retail-like experience: online and mobile, simple and convenient, with personalized and consistent service. Their use of social media will also play a significant role in their relationship with providers. Twenty-seven percent of employees today will write a negative review or post on social media following an unpleasant experience with their health insurance provider. This trend will likely gain momentum as more social media-savvy workers enter the workforce.
Providers are changing the way they do business
Other trends are coming into play and giving benefits advisers more reasons to partner with providers that give next-generation consumers greater control, security and protection. Rising health care costs, for example, have led insurance providers to expand their nontraditional offerings such as telemedicine, bill negotiation and fraud protection services. These new services not only help satisfy increased consumer expectations, but also help provide additional financial protection. With 1 in 3 Americans struggling to pay medical bills, demand for such financial protection is increasing.
Adding to these new consumer demands are new technologies that will enable more personalization and convenience. Online tools for treatment options and costs, real-time data supporting preventive care and direct consumer access to diagnostic testing are just some of the expected innovations.
Benefits professionals comfortable being uncomfortable
Although a paradigm shift occurred with the passing of health care reform law, the next 10 years will bring more change as the consumerization of health care continues. The time to embrace the challenges of the rapidly changing health care landscape is now. Evolving strategies based on market trends will allow benefits advisers to be better positioned to meet increased customer expectations. By adapting to the new generation of health care consumer, those professionals will chart a course that could mean the difference between falling behind in a growing and competitive marketplace and setting the standard for success for many years to come.
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