More and more, insurance agents and brokers, employers, and employees want voluntary benefits carriers to provide them with multiple enrollment and education options. A report released in 2013 by Eastbridge Consulting says that such options are becoming more important than ever as a reason brokers choose to work with a specific carrier.

Carriers are responding. According to the survey, 81% of carriers offer Web enrollment, up dramatically from the 59% that did so in 2009 and 48% in 2006. “This is indicative of the trend seen from employers,’ the consulting firm said in a news release, “with more now preferring Internet-based enrollment to other types like laptop or call-center enrollments.’

Web-based functionality goes beyond just enrollment. Eastbridge says the majority of carriers currently provide full-service Web systems that can offer product information and education, needs analysis and more.

Mike Fish, vice president of voluntary business at The Hartford, sees increased traction—and functionality—of these Web-based tools. “While online enrollment is not new to our industry, there are new trends in how these technology platforms are being used,’ he explains. “Of particular note is how they are evolving from simply supporting enrollment transactions to becoming effective tools for educating employees about their benefit choices and helping them to make decisions that best meet their specific needs.’

According to Fish, this shift is important. “We see value in this model, especially with Millennials,’ he points out. “Our research shows these buyers have low awareness of life and disability insurance, but they will seek multiple sources of information to influence their decision, including Web sources.

“Living in a world that is rich with personalized social media, these employees expect information to be specific to their personal situations,’ he adds. “Online enrollment platforms allow carriers and producers to meet these expectations by using employee data to provide personalized and targeted benefits education, as well as tools that support their decision.’

Rich Williams, vice president-growth markets at Colonial Life, points out the importance of education for employees and their bosses, alike. “There´s still an incredibly strong need for better financial literacy among employees, and even employers,’ he explains. “Most people get their health insurance and benefits at work, but they still find it confusing making these choices for themselves.’

His firm offers an online, Web site-based tool, dubbed Youville, that´s designed to help bridge the knowledge gap. “We wanted to personalize the benefits counseling and enrollment experience for employees and do so in an engaging way,’ Williams notes. The site offers information about different types of financial protection benefits and uses a series of questions that drive user-specific coverage recommendations.

“An employee can print a summary of these recommendations, adjusting them and adding notes, if needed, and bring it to the one-on-one counseling session with their benefits counselors,’ Williams adds. The tool also features a series of short videos that offer an overview of various types of insurance available in a typical benefits package.

Web-based enrollment and education doesn´t just apply to full-time employees. “There is a tremendous surge in the number of part-time workers in the U.S. and these part-time employees are being overlooked when it comes to benefits,’ explains Brian Robertson, executive vice president, Fringe Benefit Group. “It´s a large and growing workforce, yet it´s also complicated and time-consuming because of its high turnover.’

Robertson notes that many large employers have said they´d send part-time employees to health insurance exchanges for coverage. “But employees aren´t accustomed to shopping for benefits and would rather have someone with expertise help in their decision-making,’ he explains.

“Voluntary benefits are valued by part-time workers,’ he adds, “and making benefits easily attainable for part-time employees—online and with some education-focused resources—helps promote participation.’

He points out that some voluntary benefits programs are developed specifically for part-timers. “They are easy for employers to implement and easy for the part-time employees to access and purchase,’ Robertson says. “Payroll deduction is the most convenient way to purchase benefits and employees like it.’

Web-based tools are particularly useful—and convenient—in today´s multi-connected world. “Employees can log into their benefits platform and select the benefits they desire from their smartphone, tablet or PC,’ he notes. “Once enrolled, they can go back into the platform and make changes to their benefits as they desire. They can view eligibility and pay a missed premium online with a credit or debit card, at no additional cost.’

Agent & broker benefits
Increased use of electronic tools helps agents and brokers grow and keep their voluntary benefits business. “Of course, the key to agent and broker compensation is utilization,’ says Robertson. “Technology that makes it easier to sell increases the producer´s compensation.’ He says agents and brokers should look for product platforms that have experience with proper premium collection strategies when working with all employees—including part-timers—and have an enrollment mechanism that works for everyone.

His company provides what he calls a “set it up and walk away’ integration that includes multiple billing options, enrollment options, and dedicated account managers.  “It´s especially important when offering voluntary benefits for part-time workers that the platform is easy for the employer and the employees to use,’ Robertson explains.

Fish says his firm´s annual consumer survey shows an employee preference for online enrollment. “Also, employers favor online tools over paper or face-to-face enrollments because of the increased flexibility, with 24/7 access, and greater efficiency and accuracy,’ he explains. “By leveraging online enrollment capabilities, producers can better meet the contemporary needs of their customers.’

The Hartford´s experience shows higher participation rates and more insurance premium per employee when its online enrollment platform is used. “While our research shows employees of all ages prefer online enrollment, the Millennial generation showed the highest preference for it,’ he adds. “They expect to be able to access information using their smartphones.’

According to Williams, technology complements other communications. “The combination of technology and human interaction—in person or on the phone, for instance—boosts employee understanding and appreciation of their benefits, which increases participation, so you get the total package,’ Williams says.

Research supports the value of personal, one-on-one enrollment options. In a recent Colonial Life/Harris Interactive poll, 90% of employees said having convenient access to a benefits expert to talk with face-to-face is at least somewhat important; 46% called it “very important.’ Colonial Life surveys of employees who took part in individual benefits counseling sessions show 98% of them view them as important.

Post-enrollment technology benefits agents and brokers, as well. “Our Youville tool, while not an enrollment platform itself, but rather a communication tool, can link seamlessly to an employer´s or broker´s enrollment system,’ Williams explains. “It helps employees understand their needs and their choices, and that´s key to getting the engagement and participation that make a benefits program effective.’

Personalization is key. “That is another feature that makes the tool attractive to brokers,’ he notes. “It can be customized for employers with as few as 50 workers. Businesses can select from two different design styles and add different components, including their logos, customized messages and specific benefits being offered.

“This kind of customization is rarely available to small businesses,’ Williams adds. “Most of them don´t have the resources to develop or provide this level of benefits education. Brokers bring extra value by offering a customized product at no cost that helps solve the problem of benefits education in the health care reform world. Plus, the technology increases participation in their enrollments.’

Making use of the tools
Agents and brokers can help clients by tapping available technology platforms and tools. “Millennials are expected to comprise 50% of the workforce by 2020, making them a key demographic that companies are targeting as consumers and employees,’ explains Fish. “To remain competitive in the benefits business, which is becoming more voluntary, producers and carriers need to inform Millennials about the value of benefits.’

He points out that the most effective way to do that is through channels they use in their everyday lives.  “For The Hartford, that means using digital tools, and even social media, to educate them and make it easy for them to enroll,’ Fish notes. The company has partnered with Millennial career expert Lindsey Pollak to help educate Millennials about the need to protect their potential.

“She speaks at industry conferences and holds webinars to help employers and producers understand this giant generation,’ he adds. “In addition, she is helping producers become thought leaders on Millennials, so that they can advise their employer clients.’

Fish points out that The Hartford´s annual consumer survey shows most individuals—especially Millennials—look for input from “trusted advisors’ before they make their insurance-buying decisions.  “We believe that producers and carriers can actually become part of that advisor group, by providing valuable, targeted information that speaks specifically to individual needs and fulfillment,’ he says.

A good example, he adds, is a series of testimonial videos from The Hartford´s customers who needed to use their disability insurance. “In their own words, these consumers describe the value of their coverage to their peers and how it helped them when they needed it most,’ Fish explains. “These videos are part of our online enrollment experience, and they´ve become a key part of the decision-support process for our customers.’

Williams says, “As the implementation of health care reforms continues, controlling costs and improving communication remain top priorities for employers. There are tools and partners that can help you bring solutions to your clients to solve these problems.

“It´s pretty simple: Brokers can bring this capability to qualifying customers without adding to expenses,’ he adds. “When benefits understanding improves, so do program participation, employee morale and retention— and all with no effect on the bottom line. Brokers look like heroes, without any extra effort.’

Robertson reminds producers to not overlook opportunities to serve part-time employees. “There are many employers with part-time employees, and the number is growing,’ he notes. “While these employers are likely offering qualified coverage to their full-time employees, they may not consider offering voluntary benefits to their part-timers because they think it´s too time-consuming and/or difficult.

“Educate them about how they can improve morale and increase retention by offering benefits that their part-time workers will appreciate and use, such as fixed indemnity hospitalization coverage, outpatient benefits, dental, vision, life, critical illness and short-term disability plans,’ Robertson adds.
“Don´t shy away from this segment,’ he notes. “It´s a high turnover business, but it doesn´t have to be complicated. Working with the right partner, you can help employers easily offer voluntary benefits to their part-time staff. The employees will appreciate and use these benefits, which is a win-win for everyone.’

The author
Dave Willis is a New Hampshire-based insurance freelance writer and regular Rough Notes magazine contributor.