US Enrollment Business Transformation: Changing Business Connections and Technology Challenges

by Chuck Johnston, July 19, 2013
Industry Trends
North America

Abstract

Insurers need to have a clear view of expanding distribution options and how those options impact strategy.

In the report US Enrollment Business Transformation: Changing Business Connections and Technology Challenges, Celent delves into the complicated world of US employee benefit insurance enrollment and the impact emerging sales models have on enrollment processing.  This report explores the impact public and private exchanges have on enrollment business architecture, how the move toward comsumerism is driving carriers to reexamine the customer engagement in a highly intermediated value chain, and best practices for managing customer data in a fragmented customer service environment.

“Employee benefit insurers are reexamining their business processes and capabilities in light of shifts in employer/consumer behavior and new distribution challenges created by mandated state exchanges,” says Chuck Johnston, Research Director with Celent’s Insurance Group and author of the report. “The push toward consumerism in healthcare and the collateral impact that has on other employee benefits products are impacting the enrollment process and forcing carriers and intermediaries to think in terms of customer engagement.”

This report examines how new business requirements will have a profound effect on business processes and application architecture. It also looks at how employee benefits carriers need to develop a hard-point data management strategy to manage the increasingly externalized business processes that enrollment and customer service will require. Finally, it explores how emerging technologies like mobility, big data, and next best action predictive analytics offer a huge opportunity for employee benefit carriers to transform the enrollment process and create competitive advantage.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Defining the Enrollment Challenge

2

 

Group Market Segments

2

Distribution Models and Enrollment Capabilities

4

 

Captive Agents and Smaller Brokers

4

 

Independent Brokers with TPA Capabilities

5

 

Public Exchange

5

 

Private Exchange

6

 

Large Brokers/Advisors and HR Systems

6

Customer Experience and Brand Through a Keyhole

8

Technology Implications for Employee Benefit Insurers

10

 

Key Requirements for Modern Enrollment Systems

10

 

Integrated Voluntary / Employer Pay Portfolios

10

 

Defining a Hard-Point Strategy

12

 

Key Technologies for Employee Benefit Carriers

13

 

Vendor Solutions

14

Conclusion

15

 

For Insurers

15

 

For Brokers

15

 

For Vendors

15

Leveraging Celent’s Expertise

16

 

Support for Financial Institutions

16

 

Support for Vendors

16

Related Celent Research

17

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