The clue is in the name – benefits. It’s about engaging people with insurance that’s beneficial to them, at the point of need and consumption. This can be something as simple as a group discount. But to deliver the full benefit, the proposition has to be entwined with the integrated nature of customer service. Propositions should be highly relevant, context aware and personalised to each customer. However, all too often they are far from it, and users can feel like they are being spammed by untargeted offers.
Today, a functioning benefits platform that’s user-friendly should be the bare minimum. Programmes should be about building interconnected systems around clients and their employees. The technology exists to provide a holistic ecosystem of services covering mental, physical, financial, societal, professional and insurance-related wellness that puts group benefits providers at the centre of a broader supply chain of hospitals, doctors, repair shops, pharmacies and other suppliers.
Orchestrating intelligent relationships can reshape the group benefits market, creating value for employees and employers looking to attract and retain the best talent. Several macro forces are converging to accelerate this shift.
According to the EY Workforce Benefits Study 2023, 90 per cent of employees say they value personalised, digital experiences as they shop for, select and use their benefits. In addition, 60 per cent of employers feel that it is ‘somewhat’ or ‘very likely’ that their employees will expect a wider variety of benefits options in future. Also, 50 per cent of Generation Z and millennials surveyed are pursuing freelance or gig work.
So we have to ask why so many insurers are struggling to keep up. In simple terms, many group benefits schemes have been built in legacy insurance businesses and systems. The problem with policy-based systems is they don’t operate around people and have no real concept of integrated ecosystems, digital service and highly adaptive propositions.
Even in more modern legacy systems we see multiple instances of software providing disjointed capability, which, without being adaptable and flexible is little different to the legacy systems they replaced.
For insurers this isn’t just a digital transformation story, it’s the next commercial battleground where data, AI, and personalisation will separate leaders from laggards.
The group benefits platform of the future is a dynamic, living ecosystem built to adapt, scale, and respond in real time to the needs of employers and employees alike. One where any product is seamlessly sold, priced, and serviced in one unified experience, and where the touchpoints are wherever people are. At its core, the system is data-driven and responsive, powered by real-time analytics and advanced data science. Every interaction feeds the intelligence that refines the experience. Every moment is a chance to learn, adapt, and serve better.
We will see ever-evolving ecosystems able to adapt to new technologies and implement them into improved experiences: from health services that support weight loss and reduce diabetic risks, to simply making sure that protection products are relevant and utliised easily.
We are at a generational tipping point, with millennials and Generation Z now the majority of workers, and by 2031 making up 60 per cent of the workforce. Benefits plans and programmes that today are designed primarily for baby boomers and Generation X must be modernised to meet their needs and preferences, and delivered in a contemporary way.
Post-Covid the world of work has changed. Remote and hybrid models are here to stay and the gig economy looks set to continue to grow.
Non-traditional offerings that wouldn’t have even been a thought a decade ago are now central to employers’ value propositions, intensified further by today’s intense competition for talent.
Looking at things like the EY research and other studies, everyone appears ready for more digitalisation and data-driven solutions, especially when it comes to guidance and advice.
Generative artificial intelligence (AI), advanced analytics and other tech-led innovations can address long-standing challenges and deliver much needed benefits experiences that suit the increasingly virtualised working world while better aligning with the expectations of a younger and growing workforce.