Last week I sat down to write a blog on the importance of employee benefit carriers being able to support group, voluntary and absence management to remain relevant in the evolving benefits marketplace. To ensure my viewpoint was well-rounded, I decided to evaluate my perspective critically and enlist some help from ChatGPT. I was very pleasantly surprised to see the comprehensive response I received to the three simple questions I asked. In fact, I decided not to write the blog and instead let ChatGPT write it.
Whether conversing with industry colleagues or interacting with ChatGPT, one key message remains consistent: the future success of the employee benefits industry will hinge on integration that supports the full range of a carrier’s offerings.
Our purpose-built FINEOS Platform for Employee Benefits has been designed and built as a modern core system to support integrated group, voluntary and absence to meet operational transformation needs and to support a comprehensive benefits customer experience. Who could have ever imagined 10 years ago, when we set out on our strategy to develop our purpose-built core platform for employee benefits, that I would be asking a powerful technology like ChatGPT to validate and indeed comprehensively support our strategy!
My Conversation with ChatGPT
I asked: Should US Group carriers offer integrated Absence Management as a product?
ChatGPT said:
Yes, U.S. group carriers should consider offering integrated absence management (IAM) as a product. Here are several reasons why:
1: Growing Employer Demand
Compliance Challenges: Employers face increasing complexity in managing employee leave due to multiple regulations, such as the Family and Medical Leave Act (FMLA), state leave laws, the Americans with Disabilities Act (ADA), and company-specific policies. An integrated solution can help simplify compliance, reduce legal risks, and ensure accurate record-keeping.
Administrative Efficiency: Managing diverse types of leave—like sick days, paid time off (PTO), short-term disability (STD), and long-term disability (LTD)—can be burdensome. An integrated platform centralizes these functions, streamlining HR operations.
2: Enhanced Employee Experience
Seamless Process: For employees, an integrated solution means smoother transitions from leave to benefits like disability insurance. It ensures their leave requests, claims, and return-to-work processes are handled cohesively, reducing confusion and stress.
Consistency in Benefits: Integration ensures that employees do not encounter gaps in coverage or benefits inconsistencies, improving employee satisfaction and retention.
3: Cost Reduction for Employers
Lower Administrative Costs: By automating and consolidating absence management, employers can reduce HR administration costs. A streamlined system also reduces errors that could result in overpayments or noncompliance.
Better Absence Tracking: Employers can more effectively track and manage employee absences, which can lead to reduced absenteeism and better workforce productivity.
4: Broader Product Portfolio for Carriers
Diversification of Offerings: Offering IAM allows group carriers to provide a more comprehensive product suite, creating differentiation in a competitive market. It can also open cross-selling opportunities with other products like disability, health, and wellness programs.
Value-Added Services: Group carriers can market absence management as a value-added service to their current disability or health insurance clients, making their offerings more attractive.
5: Data Insights and Analytics
Workforce Trends: Integrated systems generate valuable data on absence trends, helping employers identify problem areas like high turnover or burnout. Carriers can offer insights from this data as part of a consultative approach, adding additional value.
6: Growing Market for Absence Management Solutions
Employer Focus on Well-being: More companies are focusing on employee well-being and work-life balance, making effective absence management a priority. By offering IAM, carriers can tap into a growing market segment.
Competitive Pressure: If group carriers do not offer integrated absence management, they risk losing business to specialized absence management providers or other insurance carriers that do offer it.
Challenges to Consider
Initial Investment in Technology: Offering IAM requires investment in robust systems and platforms that can handle compliance, reporting, and user-friendly interfaces.
Training and Support: Carriers need to ensure that employers and employees are well-trained in using the integrated system, which may require customer service enhancements.
Conclusion: The growing demand for streamlined leave management, improved employee experience, and compliance support make integrated absence management an appealing product offering for U.S. group carriers. It aligns well with employer needs and presents opportunities for product differentiation and growth.
I asked: Would you say this is mandatory for success?
ChatGPT said:
While offering integrated absence management (IAM) might not be strictly mandatory for success, it is increasingly becoming a critical factor for group carriers in remaining competitive and meeting evolving market demands. Here is why:
1: Market Expectations and Employer Demands
Rising Complexity: Employers are dealing with an increasingly complex regulatory landscape (e.g., FMLA, ADA, and state-specific leave laws). A group carrier that offers integrated absence management is in a better position to attract clients who need solutions for these challenges.
Competitive Differentiation: As more group carriers and third-party providers begin offering IAM, those that do not risk falling behind. Employers may perceive carriers without this offering as less comprehensive, driving business toward those with fully integrated solutions.
2: Increasing Need for Comprehensive Solutions
Bundled Offerings: Employers are seeking one-stop solutions that can handle benefits, leave management, compliance, and well-being initiatives under a single umbrella. Integrated absence management becomes a crucial part of this comprehensive package. Without it, group carriers could miss opportunities to cross-sell or bundle products, losing out to carriers that provide a more integrated approach.
3: Improving Employee Experience and Engagement
Employee-Centric Focus: Companies are prioritizing employee well-being and satisfaction more than ever before. A seamless, integrated system for handling leaves, benefits, and disability helps enhance the employee experience. Not offering IAM could leave a gap in this area, making a carrier’s product offerings less appealing to employers that value employee engagement.
4: Data-Driven Insights and Strategic Value
Data as a Strategic Asset: Employers are increasingly interested in leveraging data analytics to understand absenteeism trends, workforce productivity, and health outcomes. Integrated absence management systems generate valuable data that carriers can offer to employers as a service. Failing to provide IAM may limit a carrier’s ability to offer strategic insights and diminish its perceived value.
5: Pressure from Competitors and Market Trends
Growing Adoption: IAM is becoming a common feature among leading group carriers, particularly as the workforce becomes more mobile, diverse, and regulated. Not offering this service could leave a carrier lagging behind its competitors, which may make IAM a necessary investment to stay competitive.
Specialized Vendors: If carriers do not offer integrated absence management, employers may turn to specialized absence management vendors, reducing the carrier’s role in the broader benefits ecosystem and limiting opportunities for growth.
6: Sustainability and Long-Term Success
Market Evolution: As the market continues to shift towards integrated solutions, a group carrier’s long-term success may hinge on its ability to adapt. Offering IAM aligns with broader trends in automation, HR technology, and employee well-being. Over time, not evolving to meet these demands could result in decreased market share or revenue loss.
Conclusion: Strongly Recommended, but Not Yet Mandatory
While offering IAM may not be mandatory for success right now, it is strongly recommended for group carriers that want to remain competitive, attract larger clients, and align with current market trends. As the demand for comprehensive, integrated solutions grows, IAM may very well become an expectation very soon. Carriers that fail to offer it risk falling behind, while those that do offer IAM stand to gain a significant competitive advantage.
I asked: Will integrated voluntary benefits play a part in absence and group insurance?
ChatGPT said:
Yes, integrated voluntary benefits will play a significant role in the future of absence management and group insurance, as both employers and employees look for more comprehensive, flexible, and tailored benefit solutions. Here are some keyways in which integrated voluntary benefits will influence these areas:
1: Enhanced Employee Experience and Personalization
Tailored Benefits Packages: Employees have diverse needs when it comes to health, financial security, and work-life balance. Integrating voluntary benefits (such as accident insurance, critical illness insurance, or hospital indemnity) with absence management systems allows employees to access and tailor benefits based on their specific circumstances, such as taking time off for medical issues or family emergencies.
Supplemental Income Protection: During absences—especially those that extend beyond paid time off (PTO) or short-term disability (STD)—voluntary benefits like accident or critical illness insurance can provide crucial supplemental income. Integrating these with group insurance and absence management ensures employees can easily activate and coordinate these benefits when needed, improving the overall employee experience.
2: Seamless Absence and Disability Coordination
Income Continuation: Absence management and disability insurance typically cover partial income replacement, but voluntary benefits can fill gaps in coverage. For example, hospital indemnity or accident insurance can complement disability payments, offering additional financial protection. By integrating these benefits into absence management, the process for activating them becomes seamless for employees.
Coordination with Paid and Unpaid Leave: When an employee takes leave (whether FMLA, STD, or another form of absence), having voluntary benefits integrated with group insurance ensures that all relevant benefits—both employer-sponsored and voluntary—are activated automatically, without requiring additional paperwork or delays. This improves efficiency for employers and reduces stress for employees.
3: Boosted Employee Engagement and Participation
Simplified Access and Enrolment: Integrating voluntary benefits into absence and group insurance platforms simplifies the process of accessing and enrolling in these benefits. When voluntary benefits are tied to a single, integrated system, employees are more likely to understand their options and participate in programs like supplemental life insurance, accident, or wellness programs.
Educational Opportunities: A well-integrated system allows employees to learn about voluntary benefits when they are most relevant, such as during a leave of absence or disability claim. This targeted education improves employee awareness and engagement, leading to higher utilization of voluntary benefits.
4: Cost Management and Employer Appeal
Cost-Effective Benefit Options: Voluntary benefits allow employers to offer additional coverage options without bearing the full cost. By integrating these benefits into group insurance and absence management, employers can offer a more comprehensive benefits package while managing costs, as employees can opt-in to supplemental plans based on their needs.
Absence and Well-Being Programs: Many voluntary benefits, such as wellness programs or telemedicine, can help reduce employee absenteeism by encouraging preventative care. When integrated into absence management, these programs can track and support employee well-being in real time, helping to lower overall absence rates and disability claims.
5: Data-Driven Insights and Proactive Management
Predictive Analytics and Trend Tracking: Integrated voluntary benefits systems allow employers to track not only absence data but also voluntary benefit utilization, helping them identify potential risks. For example, high use of accident insurance or hospital indemnity benefits might indicate workplace safety issues or other health risks that could lead to higher absenteeism. Employers can use this data to take proactive steps to mitigate risks.
Improved Absence Management Outcomes: By integrating voluntary benefits like wellness incentives, employee assistance programs (EAPs), and mental health services with group insurance, employers can better manage absenteeism through early intervention, reducing the need for prolonged absences or disability claims.
6: Holistic Approach to Employee Well-Being
Comprehensive Care Solutions: Integrating voluntary benefits with absence management and group insurance enables a more comprehensive approach to employee well-being. Employers can offer solutions that address not only the financial and medical aspects of absence but also emotional and mental health needs. For example, critical illness or accident insurance might be integrated with counselling or wellness services, providing employees with comprehensive support during challenging times.
Retention and Recruitment: A more integrated and customizable benefits offering, including voluntary benefits, helps employers attract and retain talent. As workforce expectations shift toward personalized and flexible benefit solutions, having an integrated approach to absence management and voluntary benefits gives employers a competitive edge.
Conclusion: The Growing Role of Integrated Voluntary Benefits
In the future, integrated voluntary benefits will play a significant role in shaping the landscape of absence management and group insurance. They allow employers to offer more flexible, comprehensive benefit solutions that meet the diverse needs of their workforce while helping to manage costs and absenteeism. For employees, this integration simplifies access to supplemental income protection, enhances the overall experience during absences, and provides better support for their physical, financial, and mental well-being. For group carriers, offering an integrated platform that includes voluntary benefits as part of a broader absence and group insurance package will be critical for staying competitive and meeting evolving market demands.
