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The Future of the Game: Next Gen Relationship Pipelines for Group and Voluntary Benefits



The future of baseball lies in the minors. There are 30 major baseball teams in the United States, but they are supported by an operational infrastructure with another 120 teams that make up the smaller leagues. These teams are the professionals' pipelines – preparing and preparing the best players for coveted places in the big leagues. Each professional team has four minor-league affiliates. This year alone, Major League Baseball reduced the number of affiliated teams from 162 to 120 in an effort to standardize player development and pour more money into the lower echelons of the system. [i]

Like all changes, there was a downside to consolidation. Many societies either lost their team or affiliation or their status changed from AAA to a lower rank.

The advantage is that smaller league players, who traditionally live and work under suboptimal conditions with extremely low wages (often as low as $ 8,000- $ 1

2 000), will now reap the benefits of the reorganization. In 2021, MLB minor league salaries increased by 38-72% and reduced travel requirements. In 2022, the law will be required to provide housing for its players, some of whom will end up in small apartments or sleep in cars. [ii]

The net effect is this: Shift operation will improve the experience. Major League Franchises will establish a pool of better selection. Players will get better treatment and more sleep. Fans will enjoy better facilities and an improved view of their team's future prospects. Time will tell, but it seems that the core development process of baseball has changed to meet the needs and dreams of almost everyone involved.

It is November. The baseball season has just ended and Majesco & # 39 ;s Field of Insurance Dreams has been a resounding success. Throughout the playoffs, we have discussed the profound influence of next-generation technologies on insurance, with a focus on group benefits and voluntary benefits. The markets for group and voluntary benefits are undergoing enormous change. Employee and employer trends create a whole new generation of value for insurers who are ready for something new. In Majesco's latest report with Deloitte, The New Reality and Future of Group and Voluntary Benefits, we describe the differences between Group and Voluntary's past and its future – full of possibilities. Today we will discuss how providers of group and voluntary benefits will reach that future safely and effectively.

The Group and Voluntary Scouting Report – Products Dramatically Change to Fit Revitalized Benefits Landscape

This generation has the potential to turn downwards. stream of insurance ownership through increased registration of group and voluntary benefits that can be transferred to individual insurances and retain them as a customer.

A LIMRA study from February 2017 noted that employment-based benefits (group and voluntary) life insurance covered more people than individual life insurance as of 2016, [iii] which positioned this segment to reverse the development of insurance ownership from a bottom level of 44 % in US households. A recent LIMRA study found that 50% of North American employers who do not currently offer voluntary benefits are considering adding them, and 40% who offer them want to add additional benefits. [iv] Combine the growth in the interest of employees with the growth in employer offers and you get the recipe for a growing opportunity.

Everyone knows that the voluntary benefit products must change, but is there such a big difference between what is offered now and what is offered will be offered in the future ? Judge for yourself.

Group and voluntary products from the past

  • The products are a single size for everyone.
  • Limited data on individual employees.
  • Companies sold in blocks.
  • marketing.
  • Voluntary benefits cease when employee leaves.
  • No personalization.
  • No ability to develop the relationship.

The group and voluntary products of the future

  • products and services are holistic in nature and services they are flexible based on the size of the employer, the employees' demographics, geography and other variables.
  • The individual customer journey is as important as in individual sales.
  • Brokers are supported with better data and better products.
  • ] Employers are supported with tools that help them save time and improve usage.
  • Insurers help educate the employee.
  • Products can be "computer smart", with selection and automation based on knowledge of the individual.
  • Many products are portable and can accompany the employee when they leave.
  • Insurance companies establish and build relationships with the insured.

Future products will do more. They will suit lives and lifestyles, but they will also suit the digital experiences of new employers and employees. While many employers continue to offer the traditional products health, dentistry, vision, STD, LTD and life, there is a growing demand for new, innovative products such as pet insurance, school loan assistance, critical illness, long-term care, car, hearing, identifying thefts, homeowners and legal services. Group and voluntary benefit insurers must constantly strive for innovative solutions to differentiate themselves.

To help insurers reconsider their scope, it may help to consider how products, experiences and services will move from a life insurance transaction to a broader lifestyle experience on health, prosperity and well-being:

  • Insurance product: Products (risk, services, experience) will be redefined, but selling these products will require insurance to participate and play in ecosystems, rather than just exist as an ecosystem to itself.
  • Lifestyle – Health, Prosperity and Well-Being: Employees will look for a unified experience to cover all aspects of their lives from health, prosperity and well-being to banking, insurance, health activities, 401K accounts and more in a holistic way instead of separate transactions or policies for each is. Insurance companies will need to ask themselves how they fit into the full picture of financial well-being a growing area of ​​interest that we will discuss in a moment.
  • Valuation services: Providing value-added services such as discounts on wellness, preferred access to gym memberships and access to online broker accounts that provide a powerful, individual commitment, which eliminates friction points between the various participants in the ecosystem.

Related to Employees: The Core of Relationship

Groups and voluntary insurers No longer looking for large "blocks" of business, they will look for groups where they can channel likely candidates into a business that will include individual, dynamic relationships. Before creating a system that provides the best customers, renews internal strategies and reviews the business, it is best for insurance companies to think about what these new customer types really want and what their employers want for them. Can insurers relate?

The NFP's trend report for 2021 highlights the range of solutions offered, planned to be offered or not offered in the chart below. [v] When adding the offered and planned offer categories, almost all areas are 50% or more, reflecting a broader view of group and voluntary benefits beyond just the risk product to additional value-added services over health, life, prosperity and well-being.

Note the popularity of products for economic well-being in the diagram. COVID has forced many employees to reconsider their overall financial picture. Between the third quarter of 2019 and the third quarter of 2020, credit card balances fell by 24% [vi] People have felt their financial instability and are now willing to focus on what will give them stability – this includes insurance and related services. This makes group and voluntary benefits a great place for insurers to build meaningful, lasting relationships; helps workers of all kinds to find supportive, consistent comfort in a rapidly changing world.

Figure 1: Offered Economic Well-Being Benefits

The growing gaming economy is ripe for an insurance foundation that supports portability. Before COVID-19, it was predicted that 52% of the US workforce would be in the Gig economy in 2023, up from 36% in 2019. [vii] Majesco's research has previously shown that both generational groups gave high ratings for portability – Millennials and Gen Z with 64% and Gen X and Boomers with 57%. The older generation sees value when they retire and participate in the gig economy and get value from benefits offered as gig workers.

Customer first: Redesign of operational model through a different priority lens

A successful business model should always start with a customer first approach, identifying capabilities that should be provided as well as how they should be provided to drive growth, retention and profitability. The full relationship journey for brokers, employers and employees should be taken into account, as well as the important links to ecosystem partners and existing benefit platforms.

support the new digital core. A good starting point for implementing this effort is to start with a customer-first lens, which lists the opportunities your organization needs to provide and how they should be delivered, and then weighs the list against your existing process inventory. This will enable the creation of a prioritization framework, specifically tailored to the organization's transformation goals. Processes that need to be re-adapted or reworked will stand out. This effort must work with business units and functions that are most affected by the transformation effort.

Next Gen Core: Built for Relationships

Next generation core systems must support the customer throughout their life cycle – whether it is group, voluntary benefits or individual insurance, who realize the need to switch between these when people change employers, play on or off and have new product needs based on where they are for generations.

Optimally, these systems will support group and voluntary benefits with individual policy services on a single platform, with the understanding that customer balance, no matter where they come from, is crucial to insurance companies' growth strategies. It supports portability to allow employees to take out benefits upon termination or retirement, enabling insurers to establish direct relationships with them for a deeper and broader relationship as reflected in Figure 2.

Figure 2: Deepening of relationships beyond the traditional life cycle

Data and analysis to improve the experience

The importance of capturing, enriching and using data to identify opportunities and then deliver a relevant and engaging experience for employees is crucial for providers of group and voluntary benefits in today's digital age. Whether data is structured, unstructured, real-time IoT or machine-generated, it must be leveraged by advanced analytics to enable the creation of tailored proposals and more compelling customer experiences … adapt staffing needs to appropriate products and services, thereby building deeper trust, loyalty and commitment.

The image below shows a group voluntary product sales channel, highlighting points in the process where advanced analytics – driven by richer data retrieved from connectivity to benefit management platforms – can be used to create a better experience for insurers, employers and employees.

Figure 3: Connection-enabled analysis / AI capabilities

Every digital or customer-focused business process and solution is ripe for embedded analysis. Key opportunities for smart insights that can change the business and drive growth include:

  • Analysis of participation rate, other data
  • Analytics for cross-selling voluntary benefits
  • Sponsor reporting on participation
  • Experience rating for existing groups
  • Reporting and analysis for plan sponsors
  • Reporting at group level
  • Reducing claims costs for employers, sponsors
  • Invoicing and payment reconciliation
  • The team compliance reporting of590s [19] 6190s [18] 6190s [19] 6190s [19] its people lies 6190 , operations and technology. If group and voluntary benefit companies are to match their technology and business model to the opportunity, they must first focus on their team. Are the right people, partners and processes in place to make this transformation a reality?

    In recent months, Majesco and Deloitte have been laser-focused on group and voluntary market preparation and training. If you are ready to build your insurance dreams, there is no better place to start than talking to us. Our teams are built to prioritize your processes, build your relationships and expand your channels through next-generation technologies, cloud-based digital capabilities and API-based connections. Learn more about the opportunities that await group and volunteer benefits by downloading The New Reality and Future of Group and Voluntary Benefits today.

    Co-author:
    Abhishek Bakre, Senior Manager, Strategy and Financial Services at Deloitte Financial Services Consulting LLP
    Denise Garth, Chief Strategy Officer at Majesco


    [i] Fagan, Ryan, Minor league baseball restructuring; Complete list of 119 affiliate invitations sent by MLB teams, Sporting News, December 9, 2020.

    [ii] Pasan, Jeff, Major League Baseball demands that the team provide housing for minor league players from 2022, ESPN, October 17, 2021.

    [iii] "For the first time in history, more Americans are covered by employment-based life insurance than by individual life insurance," reports LIMRA, "LIMRA Press Release, 30 August 2017

    [iv] Howe, Barbara," A Fresh Look at Voluntary Benefits, "Corporate Wellness Magazine. com

    [v] Ibid.

    [vi] Rosenbaum, Eric, Credit card debt increases again. trends report, "Axios, 17 April 2020,

    The post The Future of the Game: Next Gen Relationship Pipelines for Group and Voluntary Benefits appeared first on Majesco.


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