The COVID-19 pandemic exacerbated existing trends around flexible schemes, lifestyle benefits and digitisation in the employee benefits industry, according to a new whitepaper by MAXIS Global Benefits Network (MAXIS GBN).
As part of the research, MAXIS GBN surveyed 1,000 senior executives and employees based in 10 different countries across six continents at the height of the global pandemic to determine views and opinions around the employee benefits industry in the COVID-19 era and beyond.
The report, ‘MAXIS GBN global perspectives: COVID-19 and the future of employee benefits’, observes that the employee benefits industry was already experiencing “a period of significant change and evolution” before the COVID-19 pandemic.
These trends include the growth of flexible schemes instead of one-size-fits-all programmes, as well as new lifestyle benefits that cater to the specific needs of different demographics.
While traditional health benefits focus on the health needs of employees (private medical insurance, access to digital healthcare platforms), lifestyle benefits are schemes in which employees can use benefit allowances to finance an employee benefit that enhances their individual lifestyle outside of the workplace.
In the survey, 46 per cent of employees say the COVID-19 pandemic caused them to reassess the value of their employer’s benefits offering, while 15 per cent expect to see an increase in this benefits offering after the pandemic.
Another key trend intensified by the pandemic is the growing digitisation of benefits solutions. MAXIS GBN notes that the remote working model was a particular driver of new solutions and services around technology and wellness.
The high demand for wellness solutions, combined with a lack of access to traditional in-person healthcare owing to COVID-related disruption, has accelerated the role of technology and innovation in the employee benefits industry as many employers turn to digital healthcare solutions.
The whitepaper argues that, as a result, the global telemedicine sector is projected to have a 23 per cent compound annual growth rate over the next five years, reaching US$116 billion by 2025.
Quoted in the whitepaper, Sebastian Tan, chief corporate solutions office at Tokio Marine Life Singapore, summarises: “The COVID-19 pandemic has changed people’s view on insurance such that they are paying more attention to their insurance coverage to ensure that COVID-19 is covered under their existing plans.”
Combined, these definitive trends, existing before but intensified by the COVID-19 pandemic, are fuelling a greater demand for more expensive benefits programmes.
Captives present the optimal opportunity to facilitate such plan designs, as well as programme adaptation and amendment, described by MAXIS GBN as “the ultimate risk bearer”.
For example, the MAXIS Global Captive Solution provides risk management for employee benefits captive programmes, including financial data analysis, access to health and wellness reports through the MAXIS Global Medical Dashboard, knowledge of local risk factors, and diversified risk to balance the captive reinsurance portfolio.
Employee benefits and medical stop-loss captives were two of several topics discussed at the World Captive Forum last week.
