5 Funding Concepts to Gas Progress in 2021 for Worker Profit Carriers


Five investment ideas for next year’s results

today We are continuing our series on investment ideas for insurance carriers 2021 with a Check out the carriers for employee or group benefits. These are the carriers who provide disability, life and other coverage to workers and their families through their employers.

In 2021, Employee benefit carriers will be in a premium crisis. The high number of layoffs, vacations and bankruptciescaused by the economic impact of the pandemic reduces the available premium. Carriers with large small commercial or retail stores and Service industry books may be particularly hard hit. We also expect increased calculated premiums for health insurance, that will put pressure on a the employer’s ability to purchase this additional coverage.

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In this environment, investments in 2021 should focus on cost-cutting measures that can maintain or ideally improve service capabilities. There are four key areas to consider in this area:

Improve the core insurance business by redesigning the new business, renewal, and case handling pathways to ensure that the right qualified resource is doing the right job. High achievers have generally been less active on this front than some other parts of the industry, so there should be plenty of room for improvement. A data-driven approach to reengineering often saves up to 60% of underwriter time on administrative tasks that could be automated or shifted to lower-cost resources and models.

Invest in smart underwriting. Smart drawing investments build on a process redesign of the drawing function to improve efficiency. The key to this is to incorporate intelligent robotics, machine learning, and data visualization tools into the drawing process to further improve the efficiency and consistency of drawing decisions. Advanced robotics can also help with tasks such as data collection, census preparation, and comparative analysis preparation to aid the insurer. Smart underwriting can also fully automate some simpler types of coverage.

Digital onboarding: One of the more difficult parts of the group insurance customer journey is post-sale. Once the sale is complete, the employer must be brought on board and employees must select optional benefits when enrolling. By developing collaborative digital experiences where brokers, customers and carriers can capture and validate important data and steps, rework, errors and delays that cause costs and effort can be avoided.

Build digital ecosystems to efficiently collect employer data. Consistent retrieval of accurate data from the employer is a crucial element in a high achiever’s business. In the case of self-administered invoices, this can also lead to significant recurring costs. Carriers often create custom data collection platforms for customers, although it is prohibitive to all but the largest employers. Fortunately, there are now better options for freight forwarders. By building data collection ecosystems with intermediate providers such as payroll or benefit administrators who have the employer’s employee information, costs can be reduced and service improved.

Work with super bundle providers. This last idea is not a cost-cutting measure. In many industries there are more and more super services or super bundles that offer everything the customer needs in one simple purchase. The simplest example is some of the high-end deals emerging that combine your car leasing, car insurance, and car maintenance into a single monthly fee. The aim is to provide complete solutions for customer needs. We’re seeing this trend with gamers like Intuit, Google, and Workday who are offering bundles for super bundles for small and medium-sized businesses. This is an area where there is an opportunity to become an employee benefit carrier if you can adapt quickly to their needs.

Cutting costs will be a focus for every high performer in 2021 – but there will still be growth opportunities. Finding the right investment balance between efficiency and expansion will help carriers weather difficult times while creating a competitive advantage for the future.

In the last article in this series, some investment ideas for reinsurers are presented.

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