Brokers, employers see a need for more options in coming open enrollment season

A strong majority of respondents in a new survey see a need for more benefit options for workers in the upcoming open enrollment season, according to a new survey from Ease, an online benefits enrollment company.

The 2022 Open Enrollment Readiness Report surveyed 1,500 employers, brokers, and agencies, and found that 75% of agencies predict more insurance options will be expected by groups during this year’s open enrollment.

The survey found that employee health and wellbeing is the top issue for employers (60%) when it comes to benefits priorities. Other top priorities included: cost-containment of health care prices (40%), improving employee satisfaction and engagement (38%) and leveraging benefits to attract talent and reduce turnover (23%).

“Inflation, an uncertain economy and the ongoing churn from the Great Resignation have placed benefits offerings squarely at the forefront of talent attraction and retention strategies,” says David Reid, CEO, and co-founder of Ease. “The hybrid workforce has also driven the benefits administration industry to innovate in order to better support remote benefits elections and general support of the remote workforce.”

Workplace changes seem here to stay

The survey found that changes in the way people do work continue to reshape the business landscape. Nearly half of agencies (43%) surveyed say they most conduct business remotely because their clients have evolved to a flexible or permanent work-from-home approach. And a total of 82% of agencies say they have changed the way they do business.

Customer service is still the top strategy for winning new business, the survey finds, with 59% of agencies listing it as their top way of getting new clients. That was followed by the ability to conduct business online (39%); providing better support with compliance and regulatory issues (33%); and access to voluntary benefits, wellness resources, and other perks (32%).

More is more, survey finds.

The Ease survey found that agencies are expecting that demand for more options in the area of benefits will continue this fall. More than three-quarters of agencies (78%) say they expected their clients would want more insurance options in this open enrollment season.

The report also notes that 42% of brokers say they would offer more worksite benefits options such as accident, life, or critical illness products during the upcoming open enrolment period. One-third (33%) will offer more health insurance options. About the same number will offer mental health benefits, with 30% also offering wellness resources. And 20% say they will offer a telemedicine options.

In addition, 38% of agencies say they offered more support to clients this year by helping companies with onboarding, conducting benefits elections remotely, and providing compliance support.

Technology adaptation lags

Not surprisingly, the report looked closely at providing digital solutions to clients. The survey finds that although a high number of employers (74%) say that benefits administration technology is of higher or equal priority this year, only 31% report currently using such technology solutions.

Brokers also put a high value on technology, with 97% of agencies saying that technology will play a role in open enrollment. Again, the practical application lags — only 47% of agencies say they are extremely confident they have the necessary tools and software for meeting clients’ digital needs this year.

“Employers and employees alike demand a personalized and one-touch experience when it comes to managing benefits, and that has a direct impact on the ability to win, and keep, customers.” says Reid. “This year’s survey findings highlight the importance of customer service in an increasingly digital world and provide insights for agencies as they look to exceed expectations during this open enrollment season.”