The future of open enrollment is here
The pandemic has led to an explosion of new voluntary benefit offerings and features as well as new benefits technology.
In the coming weeks, millions of employees will have the opportunity to make benefit decisions that will either enhance their overall financial well-being or keep it status quo. For those of us who have been in the industry long enough, it’s not surprising that Americans would rather spend their time shopping for Black Friday deals than reviewing their employee benefit options. We’ve never made it easy enough.
However, the pandemic has changed all that. For employers, the pivot to remote work last year created a mad dash to prepare for a virtual and digital open enrollment season. For employees, it brought a greater awareness around financial resiliency and being prepared for the unexpected. With news stories around medical bankruptcy and high medical bills, is it any surprise that hospital indemnity insurance suddenly looks a lot more appealing than previous years? The task at hand, for brokers and carriers, is making sure that employers and employees understand what it is, how it can help and why they should consider opting in.
Related: Times are changing (and so is open enrollment)
In addition to re-imagining open enrollment, the pandemic caused carriers to accelerate timelines and work faster to either upgrade voluntary benefit offerings and features as well as introduce new benefits technology offerings that would better service our clients’ needs. And this is what makes open enrollment so exciting this year.
Here is what we can expect to see:
Emphasis on voluntary benefits education
With the shift to remote work and/or hybrid models, the need for stronger benefits communications is more important than ever. Guardian research has consistently shown that the need for improvement was there. Now, with the growing interest in voluntary benefits, employee education is even more critical during open enrollment season, particularly since the average employee doesn’t understand how voluntary benefits help or work. For example, our Guardian Workplace Benefits study found most organizations that added coverage added medical insurance (55%), but more than a third (36%) of employers who added benefits opted to add life and hospital indemnity insurance. And if employees don’t understand it, they are not likely to enroll.
It bodes well for the broker to take a closer look at the enrollment materials that carriers offer and determine if they are employee-centric, bilingual and done in a way that helps the everyday consumer understand the benefits being offered. With all the channels available, benefits communications should no longer rely on one-sheeters alone. Educational video series are designed to do just that – they educate employees about the value of products like accident insurance, critical illness, life insurance, and do it in a way that is easy to understand. The goal is to make them approachable, use simple terms and help employees make informed decisions.
We are also seeing virtual benefits consultants that are available to employees who need help during open enrollment. By working with a broker, an employer can make this service available to their employees, which can truly make a difference given its 1:1 consultative style.
New digital enrollment experience
Prior to the pandemic, benefits technology adoption was already on the upswing. However, the widespread move to remote work meant open enrollment looked different for most companies in 2020, prompting many more organizations to adopt benefits administration and enrollment technology. Our research showed that 72% of employees who reported satisfaction with their benefits experience say they enrolled via a digital method.
This year is no different, if not more advanced. With cloud-based, API integrations and AI technology, the ease of administering employee benefits and enrolling has never been easier. For example, with AI technology, platforms like Nayya leverage artificial intelligence and data science to simplify the benefits enrollment experience. The platform – available in English and Spanish – provides employees with a decision-making tool that gives them the confidence to select the right benefits for them. Other benefits solutions, like Flock, allow employers to experience improved data connections, including utilization of real-time API data exchange, plus seamless integration with Nayya for decision support during enrollment.
This can be a game-changer for employees who have historically struggled during open enrollment. With the help of an avatar and ability to provide relevant information, such as their location, household demographics and lifestyle, employees can receive plan options within minutes. Decision-making tools for open enrollment have arrived, and we are seeing firsthand the growing interest in making these available to employers.
There is no doubt that the world has changed around us and open enrollment has too. The consumer mindset has been the most meaningful shift because of what’s happened to them, such as high deductible health plans and a pandemic that’s exposed their financial vulnerabilities. With the growing interest in voluntary benefits and mental health resources, the role of benefits is clearly top of mind for employees seeking to increase their overall financial well-being. It’s up to us with the technology, tools and channels available to make it easy for them and accessible.
Unless otherwise noted, the research/data in this byline is from Guardian’s 10th Annual Workplace Benefits Study Inflection Point. Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Nayya and Flock are neither subsidiaries nor affiliates of The Guardian Life Insurance Company of America.
Advertised services are performed by Nayya, an independent, third party service provider that is neither a subsidiary nor affiliate of The Guardian Life Insurance Company of America. Guardian is neither responsible nor liable for services, advice or recommendations made by Nayya 2021-128090 (Exp. 10/23)
Read more: