Many health insurance professionals are looking to expand business in 2014, as they adapt to the changing landscape of employer health insurance. A popular way to expand business in 2014 is by offering additional products such as defined contribution and voluntary products. What's on the horizon with voluntary products in 2014?
Towers Watson’s 2013 Voluntary Benefits and Services Survey results provide insight on how employers plan to use voluntary products in 2014. They survey polled approximately 320 U.S. companies ranging from midsize to large organizations.
Highlights of the survey and infographic below include:
The top three voluntary products are traditional supplemental medical insurance options (vision, dental, and accident), traditional wealth (disability), and traditional security (life insurance). Emerging trends include financial counseling, one supplemental medical option (critical illness), and one security option (identity-theft protection).
Voluntary products are gaining importance for companies' employee value propositions (EVPs). Approximately 21% viewed voluntary benefits as important for 2013, with 48% viewing voluntary benefits as important for 2018.
Voluntary product offerings today tend to be geared toward baby boomers, who are a large segment of today’s workforce. However, as baby boomers begin to retire in increasing numbers across the next decade, expect to see voluntary benefits and services redesigned for younger generations, who are generally attracted to customized benefit packages.
Companies are using voluntary products to enrich existing core benefits (83%) and augment the total benefits package (74%).
Infographic Source: Towers Watson
If you're a health insurance professional, are you adding more voluntary products this year? Are you seeing an increased demand for VBS? Leave a comment below.