Finding solutions to key benefits questions for 2024

My most recent column featured some questions to consider about the benefits industry and I promised to provide some context this month on finding answers to the most important questions for your business. The questions provided may not all be appropriate for your organization, and my list was never intended to be a complete or fully accurate list of all the best questions. Before looking for answers, determine the problems that are most important to your organization.

Once you have established your list of most important questions/problems, begin by asking why these are such priorities. Understanding the why will help you focus and better understand where you may be likely to find the best solution.

There are several avenues of investigation available once you begin to seek solutions, including: experience, expert advice, statistics, facts, and analogies.

A great place to start is by sharing your situation with your own team, asking them to call on their experience. They are close to your customers on a day-to-day basis, and are likely to be able to share their own experience as it relates to the issue at hand. There is a tendency to immediately take questions to your customers through some form of focus group or survey, but getting interim feedback before going to your customers is a great way to make sure you’re not overlooking an important aspect of the issue. Then, you will be ready to ask customers about their experience.

Expert advice can come from your peers in the business, your product and service providers (such as insurers), presentations at industry meetings, trade press publications and blogs, and formal consultants, both boutique or independent consultants and large consulting firms.

The world is full of statistics, and applying data science to information you have about your customers may reveal some insights that will help identify the areas of greatest need. For example, tracking metrics on employee benefits administration systems can provide a great deal of insight into what customers like and dislike in your process – and is often available from the system vendor as part of their service.

Facts about our customers are emerging every day. The changing demographics of the workplace, the changing organization of the workplace itself, and the continuing evolution of the best means of communication with customers all provide salient facts. Emerging risks are changing the breadth of product portfolios, while emerging administrative capabilities are also coming to the fore. You may also find facts outside our business that drive opportunity to your organization. One example that is everywhere recently is the use of AI. While it is not a panacea for all the issues in our business, it is a potential source of new or better services.

Analogies are useful in helping answer questions or solve problems, because they open possibilities you may overlook. A concept that works in one context might also effectively work in another. One example of this type of thinking that was very successful in the past was inspired by homeowner’s insurance. At the time, my responsibilities included life insurance development at a company that was prominent in worksite marketing. My boss came into the office and showed me his homeowner’s insurance bill. The premium had increased, but the invoice showed that the market value of his home and possessions had also increased. I remember my boss observing that no complicated forms or applications were required, this was simply part of the package. Our aha moment was that we could get people to pay for additional life insurance by reinforcing that this reflected their own increased human life value. Then we added a little intuitive behavioral nudge, and made increases automatic subject to preauthorization. That took place over 30 years ago and has resulted in substantial additional revenue for the company and its brokers – and hundreds of millions of dollars of additional life insurance protection for employee customers and their families.

Finally, be sure you are focusing on the single most important issue or opportunity before considering any less important questions. By focusing your energy and attention, your organization will get the greatest gain this year.

Marty Traynor is an Omaha based consultant in the benefits field.  He may be reached at currentbenefits@gmail.com.