A new research report from the Employee Benefit Research Institute (EBRI) shows that benefits brokers expect growth across core and voluntary products in the year ahead, but say administrative complexity and gaps in education and communication continue to hinder broader employee adoption of voluntary offerings.
"The research report findings point to clear opportunities to reduce friction in enrollment and administration and to strengthen education so employers and employees can make more confident decisions about voluntary benefits," said Bridget Bearden, director of membership growth and partnerships, EBRI.
The report, "Expanding the Benefits Horizon: How Brokers View Voluntary Offerings," found that more than three-quarters of brokers (77%) expect health insurance sales to increase in the next year. Many also forecast growth in group life insurance (64%) and supplemental health products (62%).
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Sharon Scanlon, senior vice president, Group Protection Product, Workplace Solutions Marketing and Customer Experience, Lincoln Financial, said brokers are optimistic but want more extensive support. "Brokers are on the front lines of helping employers shape benefits strategies, and this research shows where the system is working — and where it needs to work better. Overall, brokers indicated that they see demand for these products and expect growth, but they also want simpler administration, stronger data and reporting and flexible enrollment education and communication support," said Scanlon.
Other findings include:
- Administrative complexity remains a key barrier. Nearly half of brokers cited administrative complexity as a core challenge when integrating supplemental health offerings into benefits packages.
- Education is a top lever to boost adoption. Nearly two-thirds of brokers (63%) said better educational tools for employees would improve the effectiveness and appeal of supplemental health benefits.
- Brokers and employers see morale differently. Employers were far more likely than brokers to cite improving morale and satisfaction as a key reason to offer benefits (85% vs. 48%).
- Understanding gaps persist for supplemental offerings. Only 33% of brokers said employers understand supplemental offerings "very well," compared with higher perceived understanding of core benefits.
- "Fully meeting needs" is still a work in progress. Only 47% of brokers said the profession is fully meeting employers' needs regarding supplemental health benefits (45% for dental/vision).
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