The script has been played out time and time again. A company launches a coveted new offer that meets a need in the market. But over time, in order to retain and grow customers while increasing the market's reach, the product must be adapted to new or changing customer and market requirements with value-added services that make the experience more relevant and indispensable.
Take, for example, Tesla. The car company has been at the forefront of innovation and created a range of electric, autonomous vehicles that are stylish and fast, which shows that vehicle owners do not have to compromise on speed or style to give up a petrol car. But they do not stay there. In 2019, Tesla rolled out its own insurance product for Tesla owners. Elon Musk saw an opportunity to provide more cost-effective insurance for its customers by adding Tesla's offerings while increasing Tesla's customers' added value. [i]
Tesla continues to improve its premier product by adding value from including insurance in the purchase price to other value-added services such as maintenance and repairs that create a whole new experience for its customers.
Not every company is Tesla, but every company should continually research the market and their portfolio to add new value-added services. As our customer survey has consistently shown, value-added services are increasingly becoming one of the main areas for customers, which is reflected in the interested 60-75%.
One area of growing interest is integrated absence management for disability insurance. We discussed the growing trend in a webinar with The Standard, a leading insurance company that has been providing integrated disability and absenteeism management to its clients for a long time. You can see a replay of the webinar here.
Delivering a superior employee experience
When industries and companies begin their digital transformation journeys, the customer experience becomes central. Apps and interfaces are now designed through a customer-first method, not a product-first method. The implications of this change for disability insurance are the ability to provide a superior employee experience when it comes to filing disability or requesting leave, making it easy considering all the regulatory nuances.
The customer's self-service is a must ̵
For voluntary disability benefits, employers try to turn to their insurance companies or third-party administrators (TPAs) who manage their disability programs to provide a digital experience like this for their employees. An intuitive platform where they can easily send a leave request, see the remaining time and upload or download all the necessary documentation to get their leave or claim approved. Insurance companies and TPA with a digital solution that provides integrated management of disability and absence are well positioned to meet this significant market need, while giving customers a single point of contact for their benefits, avoiding duplication of work and simplifying employee experience.
Simplifying the increasing complexity of the holiday landscape
It is difficult to talk about the holiday landscape without using the word complexity. But for good reason. It is becoming increasingly difficult to keep track of federal and state paid and unpaid leave laws. And there is no sign that new rules are slowing down at work.
As if the management of leave of absence was not sufficiently challenging, the transition to telework adds another complexity with employees spread across the country working from home, increasing the number of state rules that must be managed.
As Lincoln Dirks, a Senior Compliance Analyst for Absence Management at The Standard, put it during the webinar, "You take the already complex aspect of managing federal, state and municipal leave in a given state and then multiply it by 50. The question is that none of these states run their programs even close in a similar way. Rules, regulations, processes, procedures vary depending on the state.
However, this complex landscape has created a significant market demand for absence management – which makes it the big trend for 2021! Employer customers need it because spreadsheets and sticky notes do not. And to an increasing extent, insurance companies are expanding their offerings to include it as an integrated value-added service, which differentiates them in the market. for new products and services. The faster change and market demand for voluntary benefits, including disability insurance, has driven insurance companies to track new products, digital experiences and value-added services to create a compelling new offering. Insurers need to re-evaluate their current technology platform that will make their products, value-added services and processes more cost-effective, while digitally making them attractive to next-generation buyers
These trends provide a significant opportunity for insurers to expand their offerings with an integrated solution for disability insurance and absence management that their customers are looking for.
During the 2021 strategic priorities, Majesco found leaders who excel at prioritizing the modernization and optimization of existing operations, along with the focus on creating operations for the future, implementing a two-speed strategy.
Insurance companies such as The Standard take advantage of the integrated market opportunity for disability and absence and take a leading position when it comes to creating the business for the future. Are you taking advantage of this market opportunity to position yourself as a leader? Or will you fall behind?
"Having a robust digital absence management system helps employers deliver an automated compliance experience, which is crucial as leave rules develop at the federal, state and municipal levels," says Ella Luce, Absence. Management Consultant at The Standard. "And absenteeism management is especially challenging to stay compatible when employers have employees working across the country."
Do you meet new customer requirements and market opportunities? Your decisions today to take advantage of this opportunity will define your leading position for the future.
Watch the entire webinar and hear from The Standard about how they have raised business applications with their integrated disability and management offering on Majesco's website.
[i] Team, Tesla. "Introducing Tesla Insurance." Tesla, Inc., August 28, 2019, www.tesla.com/blog/introducing-tesla-insurance.(19659026]