November 7, 2017 | Dennis Healy | Employee Benefit Adviser
The high cost of healthcare and consequential evolution of insurance plans with high deductibles have created an improved market for voluntary products. Employers are eager to provide a more comprehensive and competitive benefits package that fills the gaps created by the risk-sharing approach of high-deductible programs.
Additionally, commissions generated by voluntary can be used to fund overall benefits administrative costs and project work done by TPAs and consultants that would otherwise be borne by employers. The increased demand has also helped brokers replace income lost due to shrinking healthcare revenues.
However, there are three areas in particular that are actively driving growth for voluntary benefits:
1) Support for physical and financial wellness.
2) Personal, on-demand preferences.
3) The importance of technology.