Voluntary benefits: Four ways the industry is innovating

By Keith Farley

Advancements in technology and medical research have always shaped the need for innovation in insurance. But the COVID-19 pandemic made it obvious that health care can change rapidly and, health insurance must quickly adapt as well. For this reason, innovations in both product and experience are some of the most important investments an insurer can make. Four key areas where digital innovation is most necessary include product, preventive care, enrollment and claims experience.

Product innovation

Customer experience is intrinsically linked to benefits design. Technology, artificial intelligence and overall improvements in health care have a strong influence on where insurers must start with product innovation. For example, more people are surviving cancer and other illnesses, which also means that they experience ongoing screenings, testing and related care throughout their lives. As a result, they require coverage for those services.

Another example of how treatment methods are changing insurance coverage is the way that treatments are administered. For example, for a cancer patient, chemotherapy can come in pill form rather than an hours-long visit to the hospital. Immunotherapy is also now a standard of care for many cancers, and telemedicine is becoming more available. It is important for insurers to stay on top of the trends in medical research and treatment, review their benefits policies and make necessary changes to ensure their customers are covered for their accident or illness, no matter how their treatment is administered.

Benefits enrollment and education

The very first experience an individual has with their benefits is usually during benefits enrollment. Even with advancement in technology and benefits platforms, many enrollment experiences are still not digital and employers may be falling short when it comes to helping their employees understand the options at hand. Aflac’s annual study found that more than three-quarters (76%) of employers think their employees understand their health care costs well, while only 53% of employees agree.

Similarly, less than half (43%) of all employees are confident they understand everything about their health insurance policies, Aflac’s 2022-2023 WorkForces Report found. Virtual benefits consultations, online chat and other self-service resources may abound, but it is important to remember the importance of one-on-one consultations and discussions to help employees along their way. The same study found that nearly two-thirds of employees say working with a benefits adviser is important to them. In-person consults, Q&A sessions and opportunities to chat with an advisor are important parts of innovating the education and enrollment experience to help employees to feel secure with their selections.

Claims experience

While employers make many benefits decisions for their workforce, the employee is ultimately the end-user who will have the most poignant experiences with their health plans. Whether through routine and planned experiences or unexpected injury, accident or illness, it is most important that health insurance benefits are there for customers when they need them most.

One area that is most fertile for growth and innovation is the benefits claims experience. Aflac’s annual study of health benefits suggests that employees are most interested in filing claims online, which is aligned with the importance of online benefits management. Most employees, 4 in 5, state that it is very or extremely important to them to be able to manage their benefits online, a sentiment most commonly expressed by millennials. However, the research finds a disconnect, with more than one-third of employers not offering the ability to enroll in benefits online. Mobile filing, with an app or by text, is emerging as a popular option desired by younger generations and will likely become more important in the future.

As consumer experience continues to drive change, it is one of the most exciting times to work in insurance, because the consumer experience is front and center, driving innovation and change throughout our industry. For every insurance card, policy or certificate, there is a person who will depend on the products to help meet their needs when they need it most. That is why I’m convinced that innovating the invisible will have a real and visible impact on the world around us.

Keith Farley is senior vice president, individual voluntary benefits, with Aflac. He may be contacted at [email protected].