Our annual voluntary benefits survey shows the market is moving in a positive direction as brokers continue to adapt to ongoing changes.
‘new normal’
2022 Voluntary Survey
By Bonnie Brazzell
rom travel to dining out and from workspaces to online shopping, our world has changed over the past two years—and it may never go
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This also applies to the voluntary benefits market, according to the 2022 BenefitsPRO/Eastbridge Consulting Group survey of voluntary benefits producers. This year’s survey explores how 2021 shaped up for brokers and the ways it compared to 2020. Data collected this February and March shows we’re well on our way to returning to “normal”—but there’s no doubt our market has changed, likely forever.
Still, most of the results demonstrate that in 2021, the voluntary industry moved in a positive direction. Here are eight key findings the survey revealed.
back to the way it was before the pandemic rocked its foundations.
Many brokers report higher sales in 2021 compared to 2020.
1
Voluntary brokers—defined as those who primarily sell voluntary products—were more likely than benefit brokers—those who primarily sell core or employer-funded products but also sell voluntary—to say their sales grew in 2021 (55% versus 42%). A significant number of both types of brokers say sales held steady year over year, and only a small percentage had lower sales in 2021 compared to 2020.
Anna & Elena Balbusso/theispot.com
Both quote and enrollment activity increased.
2
We also asked brokers about changes in the number of quotes requested and enrollment activity over the past 12 months. Interestingly, responses to both questions are very similar. Close to half (41%) of brokers say they’ve seen an increase in the number of quotes requested, while 42% report increased enrollment activity. About the same number (40%) report no change, while only 18% say they’ve experienced lower quotes or enrollment activity.
Voluntary brokers are somewhat more positive, with 48% reporting increased quote activity and 54% increased enrollment activity. Benefit brokers are more likely to say they’ve seen no change over the past 12 months.
Voluntary brokers and benefit brokers report many of the same products were their top-sellers in 2021, although how these products rank in the top five varies for each type of broker. For example, dental tops the list for benefit brokers but isn’t in the top five at all for voluntary brokers, while hospital indemnity/supplemental medical was the third-most commonly sold for voluntary brokers and doesn’t appear on the benefit broker list.
Familiar choices continue to rank among the most popular voluntary products.
3
2021 voluntary sales compared to 2020
Higher than 2020
Same as 2020
Lower than 2020
Benefit broker
Voluntary broker
42%
55%
41%
32%
17%
13%
Number
of quotes
Enrollment activity
Impacts of COVID-19 on quotes &
enrollment activity over past 12 months
Increased Stayed same Decreased
41%
40%
18%
42%
40%
18%
Top 5 voluntary products sold in 2021
Voluntary brokers
Benefit brokers
Accidental injury
Critical illness
Hospital indemnity/
supplemental medical
Short-term disability
Universal/whole life
Dental
Accidental injury
Short-term
disability
Critical illness
Term life
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
Note: Brokers could select all that apply so the percentages do not add to 100%.
Current impacts of COVID-19
on voluntary business
About 40% of brokers say COVID-19 is having a positive impact on their business by helping people realize they need the benefits that brokers offer. But at the same time, brokers say they still have challenges gaining access to employers and employees, and the continuing prevalence of work-from-home arrangements can make it more difficult to educate and enroll employees. Voluntary brokers are more likely than benefit brokers to say they’re experiencing access issues.
COVID-19 is still impacting business for brokers.
4
All
brokers
Benefit
brokers
Voluntary
brokers
33%
27%
43%
44%
44%
47%
40%
38%
43%
18%
20%
15%
Online, self-service internet
Onsite one-on-one meetings
Virtual one-on-one meetings
Virtual group meetings
Virtual group meetings followed by virtual one-on-one meetings
Onsite group meetings
Call center
Onsite group meetings followed by onsite one-on-one meetings
Self-enroll on paper
29%
Most frequently used method of enrollment for 2021
During 2021, brokers continued to use virtual and online methods to educate and enroll employees in voluntary benefits. Online, self-service was the most frequently used method of enrollment in 2021. Historically, group meetings followed by one-on-one meetings (all in person) were the top picks for both types of brokers. The second most-commonly used method in 2021 was virtual group meetings for benefit brokers and virtual one-on-one meetings for voluntary brokers. Meanwhile, onsite one-on-one meetings were the third most common enrollment method for both.
About 4 in 10 brokers say their go-to enrollment methods were unchanged in 2021 compared to the previous year. The 60% who changed methods last year report varying strategies: benefit brokers moved even more to online, self-service enrollments, while voluntary brokers were more likely to return to in-person group meetings. Voluntary brokers were also slightly more likely than benefit brokers to say they moved to Zoom or other video-based enrollments.
Most brokers say face-to-face enrollments have returned, but 67% say they aren’t being used as much as before the pandemic. This aligns with what brokers believed would happen: Last year, 79% predicted face-to-face would return but not be used as much.
Enrollment methods have changed and likely will never go back to pre-pandemic ways.
5
Benefit broker
Voluntary broker
No difference
Moved even more to online,
self-service enrollments
Returned to in-person meetings (group and/or individual)
Moved to virtual meetings (group or individual) using Zoom or other video-based enrollment technology more often
Moved even more to call center or telephonic enrollments
All
brokers
Benefit
brokers
Voluntary
brokers
40%
43%
40%
20%
14%
22%
17%
22%
14%
17%
18%
15%
Difference in enrollment methods for
2021 compared to 2020
4%
2%
5%
38%
13%
12%
10%
15%
15%
0%
10%
4%
7%
6%
4%
10%
6%
2%
4%
6%
Sixty percent of brokers said participation rates among employees improved in 2021. Voluntary brokers are more likely than benefit brokers to report “significantly more” employees enrolled. About one-quarter of both types of brokers say there was no change in participation rates and less than 15% report lower participation.
Participation rates were positively impacted in 2021.
6
2021 participation rates compared to 2020
Significantly more employees enrolled
16%
7%
Benefit broker
Voluntary broker
Somewhat more employees enrolled
No change to the number of employees enrolled
Somewhat fewer employees enrolled
Significantly fewer employees enrolled
Not sure
41%
54%
24%
26%
14%
8%
4%
3%
0%
2%
Employer enthusiasm for voluntary next year
More
Same
Less
66%
77%
32%
17%
3%
6%
Benefit broker
Voluntary broker
Most brokers believe employers will be more enthusiastic about voluntary benefits over the next year. This year’s results are very similar to those in 2021, but with more voluntary brokers saying employers’ level of enthusiasm would remain the same. Although a strong majority of voluntary brokers (77%) believe employers will be more enthusiastic about voluntary benefits in the next year, this is still lower than the previous survey, when 88% thought that would be the case.
Expectations for employee enthusiasm are about the same as last year, with both benefit brokers and voluntary brokers anticipating employees will be more enthusiastic about voluntary benefits over the next year.
Brokers are optimistic about the future receptivity of employers and employees toward voluntary benefits over the next year.
7
Employee enthusiasm for voluntary next year
More
Same
Less
70%
90%
29%
10%
1%
0%
Voluntary brokers and benefit brokers agree they need stronger support from their carrier partners to be more successful going forward. The same three items top the list for both types of brokers, although the order is slightly different for each group.
Stronger support for administrative capabilities and better technology are essential for brokers’ future success.
8
More assurances regarding administrative
and billing capabilities.
More or better technology from carriers (enrollment technology, portals, etc.)
More marketing materials, tools and support
1 |
2 |
3 |
Support brokers need for greater success
The pandemic has lessened its stranglehold on our lives in many ways, but its impact is clearly far from over. Brokers continue to struggle with the access they need to both employers and employees in order to best communicate the value of voluntary benefits and make enrollment easier.
At the same time, sales and participation rates are improving for many brokers. They also express considerable optimism that employers and employees will become even more enthusiastic about voluntary benefits; in many cases, because the pandemic has shown them first-hand the importance of having vital financial protection.
To be successful in 2022 and beyond, brokers will need to continue expanding their benefits education capabilities, enrollment options and product portfolios to ensure they’re offering clients and their employees the coverage and services they expect. Carriers also have a role to play in their broker partners’ success, contributing more robust support for administration, billing, enrollment technology and marketing tools.
Positive outlook ahead
Design by Chris Nicholls
We are still experiencing
issues with access to
employers and employees.
Work-from-home is still prevalent and causing challenges for educating and enrolling employees.
COVID-19 is helping me in
that people realize they need the benefits I offer.
There is very little impact today.