Business and Technology Trends: Group Life and Voluntary Benefits

Report Summary

Business and Technology Trends: Group Life and Voluntary Benefits

Robert McIsaac
Head of Life Insurance, Annuities, and Benefits
Nancy Casbarro
Senior Principal
Steven Kaye
Head of Knowledge Management

March 2021 - Group life and voluntary benefits insurers are looking to build scale and efficiency quickly while gaining share in a market that is already concentrated among a relatively small number of insurers. This report provides an overview of group life and voluntary benefits provider business and technology issues, data about the marketplace, and more than a dozen named examples of recent technology investments. Insurers are investing in front-end and core systems capabilities across the board, including benefit and policy administration systems as well as distribution enablers.

Topics

  • Recent market and financial trends
  • Active insurer landscape
  • Technology issues, priorities, and examples by functional area
  • Top technology priorities for 2021 and beyond

Key Points and Findings

Sales growth is robust for voluntary lines. Critical illness, accident, and term life products are showing strong growth. Dental and vision care offerings are gaining attention.

Analytics are widely used for voluntary products. Applications include enrollment, identifying claims fraud, member conservation, sales reporting, and underwriting.

With no clear standard for group life and voluntary benefits information exchange, insurers are considering their next move. LIMRA has worked with insurers and vendors on post-enrollment standards, and InsureTechs may also offer solutions.

Group and voluntary/worksite insurers are exploring partnerships or other relationships with benefits administration and enrollment players. This is based on a desire to differentiate through customer experience and to combat potential disintermediation.

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