Expanding the Benefits Horizon: How Brokers View Voluntary Offerings

Summary

Brokers play a vital role in the design of comprehensive benefits packages and are instrumental in the adoption of voluntary benefits through their consultative guidance to employers and enrollment assistance to employees. To develop a deeper understanding of the voluntary benefits landscape, EBRI has partnered with Lincoln Financial to conduct a three-part research program called Benefits in Focus: Supplemental Health, Dental, and Vision Perspectives. This Issue Brief is the second installment in the Benefits in Focus series and examines broker perspectives, priorities, and outlook on the evolving benefits horizon. The Benefits in Focus Broker Survey captured insights from 170 brokers that support employer decision making on dental, vision, and supplemental health benefits. The research reveals both areas of alignment — such as shared priorities around competitiveness, retention, and work force health — and areas of disconnect, particularly in perceived value and understanding of supplemental benefits. It also identifies clear opportunities for carriers to better support brokers and their employer clients.

Some of the key findings from the survey include:

• Enrollment and communication are key areas carriers can focus on to support both brokers and employers. Brokers said the top ways carriers could support employers include enhancing enrollment tools and communication materials, communicating the value proposition for voluntary benefits, and offering more customizable product options. Meanwhile, the top ways carriers could support brokers included stronger data analytics and reporting tools, better training and education tools, and enhanced enrollment tools and employer communication materials.
• Brokers expect strong growth in core and supplemental benefits, reflecting broader budget optimism. More than three in four brokers (77 percent) expected health insurance sales to increase in the next year, alongside strong expectations for growth in group life (64 percent) and supplemental health (62 percent). This aligned with budget expectations: 61 percent of brokers and 67 percent of employers anticipated benefits budgets will rise over the next one to two years. The expected growth in voluntary benefits also reflected brokers’ and employers’ viewpoints that these benefits provide affordable coverage, reduce concerns about unexpected medical expenses, and save hundreds of dollars in unexpected costs.
• Employers value the impact benefits have on morale more than brokers do. Eighty-five percent of employers cited improving morale and satisfaction as a key reason to offer benefits, compared with only 48 percent of brokers — by far the biggest divergence between the two groups. Despite this gap, both brokers and employers ranked competitiveness, retention, and maintaining a healthy work force among their top shared priorities (e.g., 57 percent vs. 69 percent selecting “healthy work force”).
• Brokers believed the core reasons employers offer voluntary benefits are employee demand, talent needs, and affordability. This aligned with brokers’ broader view that dental, vision, and supplemental products complement core coverage and fill meaningful gaps.
• Brokers believe education support from carriers could help boost employee adoption of supplemental health benefits. Sixty-three percent of brokers said “providing better educational tools for employees” is one of the best ways to improve the effectiveness and appeal of supplemental health benefits. Brokers offered several specific suggestions for technology and communication enhancements that could help boost employee awareness and understanding of benefits. Brokers also said many employers could improve their understanding of supplemental health benefits, suggesting that education support is needed not only for employees, but also for employers.
• Administrative complexity is a challenge to the adoption of supplemental health benefits. Nearly half of brokers said administrative complexity is a core challenge they face when integrating supplemental health offerings into benefits packages, suggesting a need for carriers to focus on administrative ease to better support both employers and brokers.
• Broker-defined success centers on client satisfaction and a holistic benefits experience. Sixty-five percent of brokers based the success of dental, vision, and supplemental health benefits on client satisfaction with claims, while 57 percent pointed to satisfaction with offering a more comprehensive package. Enrollment and adoption rates (56 percent) and sales/revenue metrics (about 50 percent) also played meaningful roles.