Ease, a leading HR and benefits software solution for small businesses, insurance brokers, and insurance carriers, released the findings from its 2021 Digital Broker’s Open Enrollment Readiness Report. Findings explore how insurance agencies are preparing for open enrollment season and the pandemic’s impact on the future of employee insurance benefits and priorities. The report, which surveyed 568 insurance brokers at agencies ranging from 1 – 100+ employees, found that 90% of agencies anticipate their groups wanting more insurance options this upcoming open enrollment season, with the majority saying their groups will want worksite benefits options, such as accident, life, or critical illness
“Novel challenges brought on by the pandemic will continue to be a hurdle for insurance agencies,” said David Reid, CEO, and co-founder of Ease. “Where agencies may have been accustomed to offering traditional employee benefits and hesitant to embrace new technology, evolving to meet the employment needs of today will be a key factor in remaining competitive this year. Our survey findings provide greater insight into how insurance agencies are preparing to meet the needs of their clients during this year’s open enrollment season.”
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Expanding Benefit Offerings
The COVID-19 pandemic forced agencies and companies alike to reassess employee benefits. As employers continue to face a hiring shortage, attracting talent will almost certainly be contingent upon being able to offer employee benefits that cover a full spectrum of needs.
Of the agencies surveyed, 90% anticipate their groups will want more insurance options this upcoming open enrollment season, with the majority anticipating the need for worksite benefits options, followed by 40% anticipating their groups will want more overall health insurance plan options. Mental health benefits are also likely to be of greater importance with 35% of respondents saying groups will likely want this type of benefit to aid in the stress brought on by the pandemic.
Restructuring for Remote Work
Seventy-six percent of agencies reported they’ve changed the way they do business since last year as a result of the pandemic. Further, agencies with 100+ brokers saw the most change following the pandemic, with the largest number of brokers (60%) stating most of their business is now conducted remotely as their clients have evolved to a flexible or permanent work-from-home structure.
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The ability to conduct business digitally and have enrollment meetings online was a driving factor for 43% of agencies that acquired new clients. Further, almost half (48%) of the agencies surveyed cited offering more support to clients by helping them onboard new hires online, conduct benefits elections remotely and provide compliance support. Overall, the majority of agencies, 58%, cited the ability to offer innovative ways to help clients contain costs is key for preparing to acquire new BORs during open enrollment.
Embracing Digital Solutions
The report also found insurance agencies are embracing digital solutions for benefits administration. Of the agencies surveyed, 80% have used benefits administration technology to manage changes over the past year and 85% reported touting benefits administration technology as a competitive advantage when pursuing new clients.
In anticipation of open enrollment, 57% noted technology will play a very important role for their groups this year, and 91% are likely to put or keep groups on a benefits administration solution this season. Moreover, 88% of agencies plan to conduct at least 25% of open enrollment activities online rather than in person, and 64% of agencies plan to conduct at least 50% of open enrollment activities online, rather than in person.
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