Post on 20-Jun-2015
description
• Founding Partner and President of Genius Avenue
• 20+ years insurance industry and benefit expertise
-Cigna -Star HRG -Ternian Insurance Group -Genius Avenue
• Tech geek, has every kitchen gadget known to man
TAKEAWAYSFrom Today
Voluntary Benefits 101
• What are voluntary benefits?
• What to look for– and look out for.
• Why offer?
WHAT ARE Voluntary Benefits?
“Benefits that are sponsored by an employer and made available to their employees which typically pay 100% of the premiums through payroll deduction.”
TRADITIONALVoluntary Benefits
LIFE / DISABILITY
DENTALINSURANCE
VISION COVERAGE
MEDICAL DISCOUNTS
• Rx savings • Dental • Vision & hearing • Chiropractic
SUPPLEMENTAL MEDICAL
• Critical illness • Cancer • Accident • In-Hospital Cash
Percentage of companies surveyed that offer a particular benefit. Source: http://www.benefitspro.com/2013/08/14/5-most-popular-voluntary-benefits?t=voluntary
MOST PREVALENT VOLUNTARY BENEFITS
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Accident Dental Disability Vision Life
68%
80% 80%84%
94%
NON-TRADITIONALVoluntary Benefits
HEALTH• Deductible/Gap plans • Telemedicine • Wellness content • Health screenings
PROTECTION• Auto/home/travel
insurance
• ID theft protection
• Legal assistance
• Executive/Mgmt. plans
LIFESTYLE• Debit cards
• Retail savings
• Pet care
• Furniture
• Vacations
THE ACA ANDVoluntary Benefits
• Coverage mandates only apply to health insurance, not voluntary benefits.
• Reform requirements don’t apply to voluntary benefits.
• Non-discrimination testing under IRS code 105(h) does not apply to voluntary benefits.
!As a result…
Employers are rethinking their benefit strategies.
Employees looking to supplement individual options. !
*Disclaimer: I am not lawyer and this is not legal advice! Remember, I’m an insurance and benefit technology guy...
THE GROWTH OFVoluntary Benefits
• $6.03 billion innew premium in 2012
$2,000
$3,250
$4,500
$5,750
$7,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2200
2600
3100
3500
4027 41004223
4366
4715
50385225 5249
53975657
6030
NEW VOLUNTARY SALES PREMIUM (IN MILLIONS)
• Total in force premiumover $28.5 billion in 2012
WHO’S OFFERING Voluntary Benefits?
*MetLife’s 11th Annual Study of Employee Benefit Trends
58% Of employers in 2013 say providing voluntary benefits is a key benefits strategy, up from 32% in 2010*
47% Of employers who offer voluntary benefits say they are likely to increase in the next 2 years*
51%Of employees are willing to bear more of their benefit costs in order to have a choice of products that meet their needs
Voluntary Benefits
WHAT EMPLOYEESSAY ABOUT
Source MetLife’s 9th Annual Study of Employee Benefits Trends, 2011 http://www.jmooradian.com/voluntary-benefits/statistics/
60%
of employees say...
Benefit:RETENTION
Employee benefits offered are an
important reason for me to remain with an
employer.
Source MetLife’s 9th Annual Study of Employee Benefits Trends, 2011 http://www.jmooradian.com/voluntary-benefits/statistics/
61%
of employees say...
Benefit:VALUE
I value voluntary benefits as a way to
obtain benefitsthat meet
personal needs.
Source MetLife’s 9th Annual Study of Employee Benefits Trends, 2011 http://www.jmooradian.com/voluntary-benefits/statistics/
52%
of employees say...
Benefit:CHOICE
I’m interestedin having my
employer provide a wider array of
voluntary benefits.
Voluntary BenefitsWHY EMPLOYERS OFFER
Source: Towers Watson 2013 Voluntary Benefits and Services Survey !Source name: Why Voluntary Benefits are More Relevant Now than Ever, www.aflac.com
80%
of employers say...
We offer voluntary benefits to support
employees’personal needs.
Source: Towers Watson 2013 Voluntary Benefits and Services Survey !Source name: Why Voluntary Benefits are More Relevant Now than Ever, www.aflac.com
87%
of employers say...
Voluntary benefits influence employee
loyalty.
Source: Towers Watson 2013 Voluntary Benefits and Services Survey !Source name: Why Voluntary Benefits are More Relevant Now than Ever, www.aflac.com
90%
of employers say...
Strong benefitpackages influence
job satisfaction.
Voluntary BenefitsENROLLING IN
Employees need:
• Communication: 79% say a well-communicated benefits program would make them less likely to leave their job*
• Tools to compare benefits and rates
• Positive enrollment experience
*http://www.aflac.com/aflac_workforces_report/2013/benefits_fact_sheet_retail_employees.aspx
Employers need:
• Low cost / high ROI • Easy implementation • Minimal administrative
workload • Easy access to data
Paper Enrollment
Pro
Easily portable
Cons
Expensive, requires manual data entry, multiple forms, loss
Face-to-Face Enrollment
Pros
Personalized, accountable
Cons
Disruptive, intrusive, requires data entry
Telephone Enrollment
Pro
Convenient
Cons
Call centers, agents w/o knowledge, limited hours
Online Enrollment
Pro
Available 24/7 anywhere with Internet connection
Cons
Possible cost to purchase or license complex software, multiple sites for multiple benefits, not trusted resource
Voluntary BenefitsONLINE MARKETPLACE FOR
Online benefits marketplace Reach your audience where they spend much of their time.
98%Of people 18-29use the Internet1
81%Of Internet usersresearch online2
66%Of Internet users have made an
online purchase2
Sources: 1. http://www.pewresearch.org/fact-‐tank/2013/05/30/internet-‐adoption-‐becomes-‐nearly-‐universal-‐among-‐some-‐groups-‐but-‐others-‐lag-‐behind/ 2. http://visual.ly/online-‐shopping-‐statistics
“An online benefits marketplace is a one-stop-shop where an organization can makeall of the benefits it offers available to its members in one convenient location, and which integrates all benefit enrollment and administrative functions on one platform.”
ONLINE MARKETPLACE FOR Voluntary Benefits
Cons
• Lack of employee engagement ifnot communicated correctly
• Frustrating experience if websiteis poorly designed
• Some solutions require licensing and managing complex and expensive software
Pros
• Improved employee enrollment experience
• All benefits & information in one place
• Abundant educational information
• Ongoing employee engagement
• Simple to enroll in multiple benefits
• Consolidated back-office functions
• Minimal administrative work
ONLINE MARKETPLACE FOR Voluntary Benefits
KEYSTo Success
• Delivered from a trusted resource
• Communication
• Support from corporate, belief in products
• Part of overall benefit strategy
• New-hire promotion
• Ongoing educationand engagement
• Great user experience
Why They MatterVOLUNTARY BENEFITS
• Freedom: The Affordable Care Act doesn’t affect voluntary benefits.
• Choice: Employees want more benefit options.
• Satisfaction: Employers will see greater employee retention and job satisfaction–and stronger recruiting.
• Simplicity: Today’s tech allows for easy benefit setup & minimal administration.
• Usability: Online marketplaces provide a superior benefit shopping experience.
Voluntary Benefits
COMINGSoon!
National Restaurant Association BENEFITS MARKETPLACE
PLEASE CONTACT US TO LEARN MORE.
GENIUSAVENUE.COM
You!THANK
Ben Rozum
President
contact@geniusavenue.com