Technology will be key to upcoming open enrollment season
Brokers agree: The pandemic forced the industry to reexamine how employee benefits are offered.
The upcoming open enrollment season will be another challenging one, a new report says. The report by Ease, an HR and benefits software company, finds that 90% of brokerage firms say their clients will want more insurance options this year, and 76% of agencies have changed the way they do business due to the pandemic.
The report is based on a survey of 568 insurance brokers. It said that the pandemic forced the industry to reexamine how employee benefits are offered and noted that labor shortages have put even more pressure on employers to meet the expectations of employees.
Related: What employers should be thinking about as they prepare for open enrollment
“Novel challenges brought on by the pandemic will continue to be a hurdle for insurance agencies,” said David Reid, CEO, and co-founder of Ease. “Where agencies may have been accustomed to offering traditional employee benefits and hesitant to embrace new technology, evolving to meet the employment needs of today will be a key factor in remaining competitive this year. Our survey findings provide greater insight into how insurance agencies are preparing to meet the needs of their clients during this year’s open enrollment season.”
Changes in the workplace
The pandemic forced most companies to change the way they did business, and that included brokers. Nearly half of brokers (45%) said they mostly conducted business remotely in 2020 because clients have moved to a more flexible work structure that includes working remotely. This has increased the demand for technology solutions, and agencies have put more emphasis on benefits administration technology as a result, the report said.
Large agencies were even more likely to offer remote options, the researchers found. Of large agencies with more than 100 brokers, 60% of brokers said they now do most of their business online.
Agencies also have found more demand for customers support—48% of agencies offered more support to clients in 2020 than in previous years by helping them onboard new hires online, conduct benefits elections remotely, and by providing compliance support.
Looking ahead to the fall
The survey found that even though some companies are returning workers to the office, the emphasis on remote solutions is still strong. When asked about the upcoming open enrollment season, 57% of brokers said technology will play a very important role for their groups this year. In addition, 88% of agencies said they would conduct at least 25% of open enrollment activities online rather than in person, and 64% of agencies plan to conduct at least 50% of open enrollment activities online, rather than in person.
New technology solutions are a strong selling point, the report suggested. The survey found that 85% of agencies are promoting benefits administration technology as a competitive advantage when talking to potential clients. “Overall, the majority of agencies, 58%, cited the ability to offer innovative ways to help clients contain costs is key for preparing to acquire new BORs (Brokers of Record) during open enrollment,” the report said.
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