Let’s talk about persistency in workplace benefits

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The voluntary benefits industry has a client retention problem. The Bureau of Labor Statistics reported in 2020 that the average tenure for an employee is only 4.2 years. Over the course of their life, they will likely have to cobble together a wide variety of products from different providers to ensure they don’t have any gaps in coverage. 

As a result, benefits providers must contend with significant client turnover that is ultimately contingent upon the employees and employers they serve. This creates a perfect storm of unsatisfied participants and customer retention issues for providers. So, what can be done to address this? To fully understand the situation and find a solution, it’s important to look past increasing employee mobility and investigate the nature of the products being offered to those employees.