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.
About the Author
Datos Insights
We are the advisor of choice to the banking, insurance, securities, and retail technology industries–both the financial institutions and the technology providers who serve them. The Datos Insights mission is to help our clients make better technology decisions so they can protect and grow their customers’ assets.
Other Authors
Nancy Casbarro
Nancy Casbarro is Head of Insurance Advisory at Datos Insights. She has over 30 years of insurance technology experience, most of which were spent in senior IT leadership positions at MetLife. Most recently, Nancy served as the IT Solutions Delivery Vice President for the Group Benefits business at MetLife, supporting products, claims, underwriting, distribution development, and national accounts. Nancy also has...
Steven Kaye
Steven Kaye is Head of Knowledge Management at Datos Insights, and lead editor of the firm’s Business and Technology Trends in Insurance series. He has managed a wide range of research projects since joining the firm in 2008. Previously, Steven worked for Accenture as an insurance researcher focused on the U.S. life and property/casualty markets. He also served in both knowledge management...