You may have heard the famous French saying, "Vive la difference," used to express appreciation of diversity — often between men and women, sometimes between cultures and opinions.
Understanding differences is essential when it comes to the voluntary market. Mid-size companies represent just 8% of all U.S. businesses, but account for about 21% of employees in businesses with at least 10 employees. These employers account for an outsized share of voluntary sales, at 26% of the total market.
It's important to understand their needs, interests, and how they differ from their brethren. Here are a few findings from our recent "Voluntary and the Mid-Size Case Market" Spotlight™ Report:
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Mid-size employers offer voluntary benefits because employees want them.
Employee interest is the top reason named in our survey. Addressing gaps in the plan or expanding benefits is the next most common reason for firms with 100–499 employers, while those with 500–999 employees say they want to address employees' financial wellbeing.
Letting employees choose benefits that best help their situations has the biggest impact.
Offering choice is by far mid-sized employers' top choice to boost employee recruitment and retention.
A strong appetite for voluntary products.
Employers in this group are most likely to offer 3–4 voluntary products, and about a third offer five or more. Most mid-size employers plan to change their benefits program over the next 12 months to boost this even higher: 60% of employers with 100–499 employees and 77% of those with 500–999 employees are likely to add a new voluntary benefit or move some benefits to voluntary.
Online services are very important.
A majority of employers either won't select a carrier that doesn't offer online administration or say it influences their decision. Employees want online services, including filing/checking claim status and access to tools to calculate the amount and type of coverage they need.
Mid-market brokers have embraced nontraditional products.
More than half the brokers who focus on the mid-size market sell ID theft coverage and legal plans. More than a third also sell pet insurance and wellness programs.
Claims integration is more important to mid-market brokers.
Almost half of mid-market brokers cite this capability as extremely important or very important.
Understanding unique characteristics of the mid-size market helps you better tailor offerings and services to the needs of these employers and employees. And that could make all the difference for your business.
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