"We found that hassle-free administration is more important now among employee benefits administrators and among brokers and consultants who market benefits to employers"
ST. PAUL, Minn.--(BUSINESS WIRE)--Due to the overall rising costs of employee benefits, large employers surveyed by Securian Financial Group's Group Insurance unit continue to rank competitive pricing highest among their considerations for choosing a group life insurer. The same is true for the consultants and benefits brokers who market group life to employers.
Other considerations, however, have moved up in importance since Securian conducted the survey three years ago.
"We found that hassle-free administration is more important now among employee benefits administrators and among brokers and consultants who market benefits to employers," said Paula Bilitz, director, Group Life Insurance Marketing, Securian Financial Group. Ease of doing business also ranked higher with consultants than in the 2011 survey, added Bilitz.
Top considerations for employers:
1) Cost-competitive products - This factor moved up to number one in 2014. In the 2011 study, "tailoring benefits" was first.
2) Benefits tailored to employers' needs.
3) Hassle-free administration.
4) Easy to do business with - Benefits administrators ranked this factor sixth in 2011.
Top considerations for benefits producers:
1) Cost-competitive products.
2) Hassle-free administration - Producers placed higher importance on this factor than in the 2011 study.
3) Benefits tailored to clients' needs.
4) Easy to do business with.
Use of social media gains traction
Though adoption of social media channels to communicate with employees is still relatively low, producers' and administrators' engagement with social media has picked up. Respondents believe:
A carrier's mobile apps demonstrate technology leadership (44%)
Use of social media shows the carrier is keeping up with the times (36%)
Use of social media shows forward thinking on the part of the carrier (33%)
The study was conducted by Gestalt, Inc. in January 2014. A representative sample of 102 interviews was conducted among customer and noncustomer benefits intermediaries and administrators. Similar studies were conducted in 2006 and 2011.
Securian issued its first group life policy more than 90 years ago and now provides plan options, customized processes, and simplified administration to Fortune 1000 companies and 19 states. The company also started developing additional voluntary group products in 2013 that will help employers and employees adapt to a rapidly-changing employee benefits landscape.
Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nation's largest life insurance groups, it is the holding company parent of several companies.
Insurance products are issued by Minnesota Life Insurance Company in all states except New York where products are issued by Securian Life Insurance Company, a New York authorized insurer. Both companies are headquartered in Saint Paul, MN and each insurer is solely responsible for the financial obligations under the policies and contracts it issues. Product availability and features may vary by state.
DOFU - 096-2014
A03153-0614
