America's Benefit Specialist March 2023

NOTEWORTHY

You can find the latest data table with U.S. workplace sales trends in LIMRA’s Fact Tank at www.limra.com. EMPLOYEE SATISFACTION WITH BENEFITS OneSource Virtual, a provider of HR and finance outsourcing services, solutions and products, surveyed 5,000 employees and 500 HR directors in the United States to gauge employ ee satisfaction with benefits and determine how attitudes between the two audiences might differ. The surveys, which were conducted in January, covered a range of topics including how well leaders understand what’s important to employees, how often employees receive an engagement survey and what benefits are most important to employees. Survey results reveal that less than half of employees believe that leaders understand what’s important to them, compared with more than three-quarters of HR directors who said the same. Thirty percent of employees also report never receiving a survey to gauge their satisfaction or engagement. “For employees to be engaged at work, they need to feel that their leaders understand what’s important to them. Without this, building and maintaining a talented, motivated team is challenging,” said Trey Campbell, CEO of OneSource Virtual. “Our survey raises a number of questions that leaders will need to answer if they want to create a workplace where employees can thrive.” Key findings of the report: • There is a 21% enthusiasm gap between how satisfied HR directors think employees are with their benefits and how satisfied employees actually are. • Nearly half of surveyed employees said benefits are second only to salary when making decisions about their careers. • Seventy percent of employees identified earned wage access as an important benefit, and 77% identified tax-ad vantaged accounts as important. “There isn’t a one-size-fits-all solution for improving en gagement, but it starts with listening,” Campbell said. “Don’t make guesses about what’s important to your people—ask them. That way the solutions you explore, whether it’s co-sourcing certain routine tasks or implementing an earned wage access solution, have a targeted purpose and are more likely to lead to success.” MANY AMERICANS MADE FINANCIAL RESOLUTIONS FOR THE NEW YEAR BUT ARE MISSING SIGNIFICANT SAVINGS FROM TAX-FREE ACCOUNTS According to a new survey by Alegeus, a provider of healthcare payment solutions, 66% of respondents made finance-related resolutions for 2023—whether that be saving more (54%), spending less (44%) or sticking to a budget (38%). Of those respondents making finance-related resolutions

WORKPLACE SUPPLEMENTAL HEALTH PRODUCTS AND DISABILITY INSURANCE SALES INCREASE

New annualized premium for supplemental health prod ucts―accident, critical illness, cancer, hospital indemnity and other supplemental health insurance products―increased three percent in the third quarter 2022, according to LIMRA’s workplace benefits sales surveys. “Interest in critical-illness coverage increased during the pandemic,” said Patrick Leary, corporate vice president and director of LIMRA’s workplace benefits research program. “While third-quarter sales weren’t as strong as the first half of the year, growth continued in the third quarter.” In the third quarter, U.S. workplace supplemental health carriers reported a combined total of $453 million, three percent higher than the same period in 2021. Through the first nine months of 2022, workplace supplemental health insurance product premium totaled $2.1 billion, rising 11% year over year. New premiums sales for both group and individual workplace supplemental health products improved in the third quarter, up two percent and five percent, respectively. Through the first nine months of 2022, group and individual workplace supplemental health premiums also experienced growth. Group supplemental health product premium rose 12% while individual products increased eight percent. Total workplace disability insurance new premium sales were $560 million in the third quarter, a year-over-year quarterly increase of three percent. Long-term disability in surance premium drove overall growth in the quarter, up six percent. Short-term disability premium was up one percent for the quarter. Overall, U.S. workplace disability new premium totaled $2.8 billion through September 2022, a year-over-year increase of one percent. In the third quarter, total workplace life insurance new pre mium was $630 million, down six percent from the prior year. In the first nine months of 2022, U.S. workplace life insurance new premium totaled $3 billion, down one percent from the same period in 2021. For the quarter and for the first nine months of 2022, over all workplace life insurance premium declines were largely driven by a decrease in term life insurance premium, which fell 21% for the quarter and five percent for the first nine months of 2022. “In 2021, we saw several large employer sales, which is hard to replicate year over year,” Leary said. “We are, however, seeing more sales among small and midsize employers that held off making changes to their benefits during COVID.” LIMRA’s workplace benefits sales surveys for life insurance, disability insurance and supplemental health represent at least 90% of their respective annualized premiummarkets.

30 ABS | benefitspecialistmagazine.com