Sep 14, 2022

5 stats to know for customer-centric benefits software

The increase in adoption of digital strategies puts modern benefits within reach for carriers and benefits software alike. So how can companies best navigate this shift? Here are five benefits stats from McKinsey, Accenture, LIMRA, and more that can help.

Sarah Wallace

Benefits are a powerful thing. They help employers retain hard-won talent and employees stay physically, mentally, and financially healthy. So it’s no surprise that employers are desperate to deliver the customized, convenient benefits experiences that today’s workforce desires.

That’s no easy task when so much of the industry still relies on legacy systems. Yet many industry leaders are answering the call — embracing innovations like application programming interfaces (APIs) to achieve fast, clean, accurate data exchange. This increase in adoption of digital strategies puts modern benefits within reach for carriers and benefits software alike.

How can customer-centric benefits software best navigate this industry shift? Here are five benefits stats from McKinsey, Accenture, LIMRA, and more that can help.

A highly digital benefits experience increases employee satisfaction by 89%

Research from Guardian confirms that digital benefits experiences can have a massive impact on employee engagement (37% paper vs. 70% highly digital). Yet only 31% of organizations identify as having a high degree of digitalization for their benefits administration.

Key takeaways:

  • Over 2/3 of employers don’t have the highly digital experiences their employees want

  • Winning customer loyalty in the years to come will hinge on helping employers pivot

  • APIs are key for delivering the all-in-one experience employers need to stay competitive

[Related read: Noyo 101 for benefits software]

Employers use an average of 2 to 3 vendors to help administer their benefits programs

With the benefits marketplace more crowded than ever, it’s no surprise that a different Guardian report found employers are using more and more software to manage their benefits programs. Interestingly, employers are looking to vendors for guidance around technology strategies.

Key takeaways:

  • Employers are overwhelmed with choice, so it’s critical to be clear on differentiators

  • Becoming a trusted resource on benefits technology will create value with employers

  • Making benefits easier and more rewarding creates a virtuous cycle for your business

70% of members feel the healthcare system is difficult to navigate

Everyone should have access to flexible, relevant benefits that are easy to understand and use. Unfortunately, that’s rarely the case in the US, as this stat from Maestro Health demonstrates. One way benefits software can help ease the pain is with powerful automation and clean data.

Key takeaways:

  • Employees just want to be able to understand their benefits and use them without issue

  • The more connected a benefits software is on the backend, the easier it is to deliver

  • Benefits data platforms like Noyo are essential to taking the friction out of data exchange

[Related read: Ameritas x PlanSource x Noyo: Why APIs are the future of benefits]

Digital insurance ecosystems could encompass $60 trillion in revenue by 2030

With so much opportunity up for grabs, it’s not surprising big tech and insurtechs are looking for ways to break in and disrupt the benefits industry. Ecosystems, defined by McKinsey as an “interconnected set of services,” offers benefits software a strategic framework to get ahead.

Key takeaways:

  • Building networks of carriers, brokers, and more will define modern benefits experiences

  • Success with ecosystems is contingent on the ability to turn on new integrations at scale

  • It’s important to choose a benefits data partner who can help build that API infrastructure

Only 35% of employers have access to API-enabled data exchange

LIMRA research shows that 35% of employers currently use APIs from their insurance carrier for employee data exchange, but that half (45%) are less than satisfied — revealing current solutions from carriers aren't meeting expectations. Meanwhile, 27% of employers who don't have API-enabled data exchange want it. That means in a world where real-time data exchange is transforming virtually every industry, almost 70% of the benefits market are still relying on files, paper, and other manual systems. It's a big opportunity for benefits software to offer a differentiated experience. To succeed, having a benefits data platform partner that delivers clean, structured, and secure data is a must.

Key takeaways:

  • Employers are saying they’ll rely more on vendor-provided tech in the next five years

  • The biggest areas of opportunity include benefits education and decision support

  • Brokers will help support in these areas, so don’t forget them in strategic planning

Go deeper with the industry’s most relevant stats

Looking for more takeaways? We’ve combed through the best reports and surveys to find relevant insights across the entire benefits ecosystem in our new ebook, 30 key stats on the state of modern employee benefits. Explore the stats today!

If you do benefits, you need Noyo

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