“The voluntary market experienced steady growth in 2016, with total voluntary sales up 8 percent year-to-date as of the end of September. This success was shared across product lines, with almost all life and health products increasing over last year. We have seen steady year-over-year increases in sales for the past five years, and expect that this trend will continue into next year.

“For 2017, we expect to see continued focus on critical illness, accident and other supplemental health products as carriers expand their offerings in this area. However, employers will experience greater uncertainty about possible changes to or repeal of the Affordable Care Act — and, as a result, they may be hesitant to make changes or additions to their own benefits packages until this is clarified. On the enrollment front, we will continue to see shifts toward electronic enrollment as well as the introduction of more education and decision-support tools helps employees learn about their benefits.”

Joe Alfonsi

Partner/founder, TriBen Insurance Solutions
Voluntary benefits specialty brokerage

“We finished the year with an extremely strong fourth quarter, signing up 25 new groups in the last three months, almost all of which were replacement cases that had voluntary programs in place.

“That tells me that employers are taking a paternalistic approach to the voluntary benefits they offer. Voluntary products have traditionally been a 'conceptual sale,' but that has changed. It has now become a pricing and product sale. Employers are saying 'we need to introduce something better for the employee' — that mindset marks the biggest way the industry has changed in the past five years.

“We're expecting a strong 2017. But the market has become increasingly competitive. There are more carriers in the voluntary market, and they're competing more than ever for business. That gives us the chance to compete on pricing, which is clearly to employers' and employees' advantages — but also means the competition among brokers is intense.

“It's so intense, in fact, that we can't ever afford to go into an employer without the best product for that group — there are always three or four brokers behind us competing for the business. If you're not putting your best foot forward, you are easily exposed.”

Susan Combs

Founder/CEO, Combs & Company
Full-service P&C and benefits brokerage

“We're seeing the shift to consumerism in the form of our clients shifting back to the old cafeteria-style offering as a way to both control benefits costs and empower employees to design their own benefits solutions.

“Clients are adding vision, dental, long-term and short-term disability and life insurance, and then peppering in newer voluntary options like prepaid legal coverage and pet insurance — this is giving employees the option to select the benefits that work best in individual situations.”

Nick Rockwell

Senior Consultant, Eastbridge Consulting Group

“2016 was another positive year for voluntary benefits. While sales numbers for the year will not be tallied until late spring, there were other indicators of continued growth and market health. For example, we saw an increase in voluntary sales productivity among active employee benefits brokers and producers. We also saw strong employer interest in integrating their voluntary benefits and existing benefit administration systems — a further signal that voluntary programs, particularly in the eyes of the employer, are becoming a foundational element in benefit offerings.

“In 2017, we expect this momentum to continue. Our research on employer-related trends and attitudes found increased interest in adding a new voluntary benefit in the coming year. In terms of product development, Eastbridge research is hinting at an influx of new hospital indemnity programs to the market in 2017, but with an eye of caution. In light of the election results and possible legislative developments on the horizon, more carriers may choose a wait-and-see approach before launching any new gap-type plans. Undoubtedly, it will be a year of unknowns and change — and one that Eastbridge will continually monitor and research.”

Patrick Toner

CEO/Founder, Customer Benefits Analytics
Provider of data analytics voluntary marketing support tools