For many years, digital transformation has been a top priority for insurance companies. But many operators were hesitant or slow to tackle a digital transformation project despite all the signs that it was time.
The COVID-19 pandemic has been shown to be a catalyst for digital transformation. Insurers who kicked the decision on the road encrypted to have their core systems modernized to meet the demands of today's remote, digital world. According to the Deloitte survey, 48% of insurance executives agreed that the pandemic showed how unprepared they were to cope with this economic storm, with only 25% of respondents agreeing that their carrier had a clear vision to maintain operational and financial resilience. [1
As a result of the pandemic, new data from Aon showed that employers offering voluntary benefits increased 27% during the last reporting period – significant market growth. In particular, participation increased in the short term with disabilities exceeding 15%, reflecting a changing market opportunity for insurance companies. 
Add to this the proposed federal paid family leave by the Biden Administration on April 28 . If the proposed leave becomes a reality, it will probably have a huge impact and be an opportunity for insurers. The combined growth in disability insurance and the growing need for absence management gives insurers an emerging market opportunity to meet the changing requirements and needs of their customers. Companies that are already prepared to administer their customers' disability insurance and remnants on an integrated basis are well prepared to take advantage of the growing demand in the market.
Unlike the pandemic and the need for digital transformation, federal leave will not take place overnight or without warning. Although no one could have foreseen the pandemic and the drastic consequences it would have for companies and our lifestyles, the growing demand for disability insurance combined with the new proposed legislation and other state laws on paid family leave provide strong indicators of a rapidly changing market that will require IDAM solutions.
If you do not have an IDAM solution that supports an offer for disability and absence, it's time to act now!
Increased demand for value-added services
Majesco's strategic priority report for 2021 found that almost a quarter of the products provided in all respondents were new, innovative products – reflecting an increasing focus on bringing new products and services to market to meet new risks, behaviors and changing customer requirements.
Value-added services accounted for a significant proportion of these new products at 82% – highlighting how insurers are expanding their product offerings to meet customer needs and requirements. While these value-added services were seen as low-hanging fruit in the past, this change reflects the rapid changes we are seeing in the industry, where the competitive landscape continues to grow as insurers evolve to meet customer needs in this new normal
area we see growing rapidly is the voluntary market for benefits. In the light of the pandemic, employers are assessing their workforce and evaluating their current benefit structures to ensure they get the most out of their benefits while giving employees the best value. Voluntary benefits are becoming increasingly important for employers to offer in both the fight for and the retention of talent.
With more employers launching voluntary benefit programs, including short-term disability, the ability to provide a value-added service such as absence management and having it integrated with the disability insurance offer has never been stronger for insurance companies.
Federal Paid Family and Medical Leave & # 39 ;s Potential Impact on the Market
President Biden's administration recently unveiled its American Families Plan  which includes a proposal for a federal program for paid family and sick leave. Although there are still many significant obstacles to clearing this up before it becomes law, the effects of such a program on absenteeism management are enormous.
Details of the proposed program are relatively sparse, but it is likely that a federally paid leave program would not exactly match the benefits available in the states that currently offer paid programs for family members and health care. This would mean that state laws would likely continue to apply, and employees would need to receive benefits under which law was more generous in the specific circumstances, which would add additional administrative complexity to managing employee leave.
Currently calculating the amount of the benefit. an employee must receive differs in different government PFL / PFML programs. With a federally paid program stored on top, with its own calculation method, adjustments and shifts from federal and state payments would need to be made. Include the various eligibility rules in the examples above, and the administration will be extremely cumbersome and will require sophisticated technology to handle all actual volumes of claims.
The complexity of this can not be underestimated and the need for a robust solution has never been greater!
Government-paid family and medical leave programs to be rolled out in the meantime
If a federal program actually succeeds, it would not be rolled out overnight. Biden proposed that the federal program be phased in over a ten-year period, and by year 10 it would guarantee 12 weeks of paid parental, family sickness, personal illness or security-related leave. From the first year onwards, workers would also receive three days' leave each year. 
According to the DMEC, outsourcing of federal FMLAs has increased at an average annual rate of 5% since 2014, with larger employers also choosing to outsource paid leaves.  Even without a federally paid leave program, customer demand for outsourced absence management is likely to grow with the additional state paid family and sick leave programs that will be rolled out over the next three years: Connecticut 2022, Oregon 2023 and Colorado 2024.  The inevitable increases in the leave landscape in the next few years will make more employers look to insurance companies and TPA to handle the administration of employee leave for them – creating an opportunity to deepen the relationship and provide additional value.
Market demand and growth in voluntary benefits will only grow as Millennials and G sv Z strengthen their dominance in the market. The pandemic showed the real need and value of insurance from life to disability. The regulatory landscape continues to change. Together, these market changes create a "perfect storm" of growth opportunities, especially for integrated disability and absenteeism management.
But capturing this opportunity requires the next generation of cloud insurance solution that can meet these requirements with agility, innovation and speed.
Do you want to launch an IDAM offer to your customers? We work with many leading insurance companies today who take the opportunity! Contact us today to see how we can help you!
Angie Brown, Sales Manager, Absence Practice, Majesco
Lynne Sousa, Leave Management Compliance Counsel, Majesco  2021 Insurance Prospects: Accelerate recovery from pandemic as it swings to flourish and Neal Baumann, Deloitte, December 2020
 Diagram: Voluntary Benefits Increase, Emily Payne, BenefitsPRO, March 2021   Fact Sheet: The American Family Plans, The White House, April 2021
 How President Biden's paid FMLA proposal would work, Stephen Miller, SHRM, May 2021
 2020 DMEC Employer Leave Management Survey, Karen English and Terri Rhodes, DMEC, March 2021