Strategic Technology Issues for Voluntary/Worksite Insurers
Many voluntary/worksite carriers face notable challenges to both top- and bottom-line growth. Traditional life insurance and annuity sales are stuck in relatively low growth mode, interest rates remain historically low, and pressure on expenses remains high.
The nature of benefits in general has changed. Employers and employees are all looking for different ways to cost-effectively acquire benefits that can meet current life and financial needs while providing for a level of portability that has not historically been a key market driver. In addition, uncertainty around the Affordable Care Act, the operation of public and private exchanges, and concerns about supporting existing distribution channels have led carriers to approach the voluntary benefits market with wariness. This Novarica Research Partners program report, underwritten by SunGard, provides a carrier’s perspective on the market drivers prompting growth in this market and what technology challenges must be considered when developing a comprehensive strategy.