My goal in this column is a little more modest: To consider the future history of the benefits world based on trends in the marketplace we can see today. As we look into the crystal ball, we're sure to see innovations in our business, fueled by lots of factors:

Government and politics: Mandated benefits, especially as related to paid family leave and paid medical leave for employees, are coming to the fore in many states, as well as on the federal level. A long-term care benefit mandate is a reality in Washington state and is also on the radar of many other states. As this trend accelerates, benefit advisors need to consider compliance as an important service to employers. This is especially true because there is little uniformity between the state regulations that have been passed to date, there are unclear consequences for multistate employers and even if federal regulations are passed, it is likely that some states will retain unique mandates.
The economy: While employment is growing and even booming, in certain sectors, it is dwindling in others. The trend towards enabling employees to work from home has created a national competition for capable workers, creating an opportunity for employers to use their benefit program as an even stronger retention tool than it has been in the past.
Social and cultural change: Employers increasingly need to create and maintain meaningful programs benefiting society. Green initiatives and diversity, equity and inclusion programs are being fostered, both within the employer's communities and among their employee base. Employers seek vendors who are promoting the greater good, as well as their own products and services. The employer's work culture can be especially important in helping unify positive perceptions on the part of remote workers.
The pandemic: The effects of the pandemic and ongoing variants are driving changes to benefit product pricing, design, enrollment and service. As a shared life event across the country, the effects are more similar to those of the Great Depression of the 1930s or a world war than they are to more isolated watershed events like 9/11.

In addition, four exponential areas of growth, all driven by technology, are already affecting our business and are sure to drive changes in the future:

Computing power and artificial intelligence are revolutionizing what we know about customers, what they know about us, and how we connect with them. The resources available to consumers, especially in the form of personal digital assistants, are going to provide services far beyond the current versions of Siri or Alexa.
Multifactor communications, made possible by mobile technology and advances in computing power, allow us to contact both employer and employee customers at the time they prefer, through the medium they prefer, with relevant solutions to questions or issues.
Information and data, combined with AI-driven analytics, can allow us to anticipate needs and provide products and services employees may not even realize they need. However, it is noteworthy that the algorithms used to analyze data in our business needs to be unbiased and used in a transparent way, because perceptions that the data sits in a "mysterious black box" can lead to customer mistrust and, eventually, onerous regulations.
Genomics is making significant advances in disease management, condition prevention, and growing human longevity. It is likely that the risks we insure will change significantly as these advances enter the marketplace. What new products will we need as employees live healthier lives and have access to personalized wellness programs based on their genetic makeup?

The final and best element about writing a future history of employee benefits is combining our own experience and knowledge of how the market works with these drivers of change.

Instant Insights /

Writing a 'future history' for employee benefits

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