There is a lot of talk these days about the growth of the voluntary benefits industry. Voluntary benefits is a trending topic, and has moved from being considered a separate silo to becoming a core component of employee benefits adopted by employers, brokers, and carriers alike.
Some people measure the success of this industry by the amount of premium they write, the number of cases they sell, or by the revenue they bring in. Others may try to hitch their sales pitch to the bandwagon by rebranding the industry and selling their sales process, and letting you know that you are leaving money on the table if you don't partner with them.
Personally, I measure the success of the voluntary benefits industry by taking several items into account, starting with cold, hard facts. According to Eastbridge Consulting Group, Inc., growth in the industry holds steady at 3 percent to 5 percent year after year. Over 40 percent of accounts offer three to five different traditional voluntary products, with 20 percent to 40 percent of employers considering adding additional options over the next couple of years.
Above and beyond the facts, I take into account my own experience in this industry. I started specializing in voluntary benefits with a carrier 10+ years ago, right out of college. At that time, VB was still a specialty product sold primarily through direct distribution. Some brokers were early adopters and understood the solutions that these plans can provide to their clients, and some just offered it as a “fix” for clients that had problems with their existing carrier.
Fast forward to today. Voluntary benefits have become a key component of benefit offerings provided by employers — employees are asking for them — and it can all be attributed to the solutions that they provide. We know:
- that out of pocket exposure to medical expenses is rising;
- that financial wellness is a key component of employee holistic well-being;
- that positioning these plans strategically within a benefits package can provide ROI back to the group for strategic initiatives;
- that employees look to their employer today more than ever for all things insurance or finance related
- and that the changing workforce has resulted in employees wanting the ability to customize benefits offerings to their unique needs.
This has all led to the growth of the industry.
I also measure the success of the industry every time I visit with a client and get to hear the stories about how these solutions have helped someone. There is no better job satisfaction for me than hearing how someone didn't think they were at risk, but bought coverage because it was inexpensive and “why not?”, only to learn that their impulse purchase helped their family afford treatment, stay in their home, and provided the solution these plans are built for. That's what we really do in this industry right? We are providing customizable benefit solutions for employees to protect themselves and their family at times when they need it most.
I think we can measure the success of this industry by the fact that we no longer have to call them “voluntary benefits;” they are now just benefits.
Heather Garbers is responsible for driving voluntary benefit strategy and sales at HUB International. Her carrier agnostic strategy allows HUB to truly partner clients with the best fit for their and their employees' needs. She is very passionate about the voluntary benefits industry and its ability to provide customizable benefit solutions for employees to protect themselves and their family at times when they need it most.
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