Fewer people are willing to take chances when the economy is unstable. Some variables currently affecting benefits in 2023 are rising healthcare expenses, an impending recession, and a cooling labor market.
Insurance rates for families participating in employer-sponsored plans have increased by around 50% over the past decade. But, there is a reason for optimism: when individuals are educated about their rights, they tend to make wiser choices. Many applicants eye for group benefits in Canada.
Companies will have higher expectations for their benefits software as they struggle to manage benefit plans in the face of economic uncertainty. It, in turn, will increase the pressure on insurance providers to update their infrastructure and speed up the development of new partnerships and digital experiences to better serve their customers.
Trend No. 1: Significant Emphasis is Placed on Data Quality.
The availability of reliable and actionable information on benefits is no longer a luxury. More interoperability and an emphasis on keeping data clean and structure are needed to ensure that members can access their information when and where it’s needed.
For members to feel secure in their coverage, they must have faith that their insurance provider is up-to-date and will not create additional hurdles while accessing medical services.
Everything necessary for an insurance company to handle a claim will be readily available. Better member experiences may be built using benefits software when it can sync securely with carrier systems. The platform will be a foundation for third-party developers to provide decision support, wellness provider, and other tools to give members a 21st-century experience.
Trend No. 2: Workers Highly Value Options in Benefit Packages.
Employers are under increasing pressure to abandon blanket benefits packages to better accommodate their increasingly varied and dispersed workforces. Instead, employers should design customized benefits packages to meet each participant’s requirements and objectives in the best interest of employees and businesses.
Traditional benefits such as primary medical, dental, vision, and disability will be supplemented this year by more innovative offerings, such as fertility, elder care, tuition reimbursement, and pet care.
Trend No. 3: Customers Looking for Valuable Benefits
Benefits administration is already a challenge for many companies in this era of reduced funding and uncertain employment prospects. More options and economic instability will make it even more challenging for them to balance supporting their employees and remaining profitable.
It will cause an increase in the need to provide evidence of the effect of each benefit on outcomes and retention. The return on investment (ROI) metric is likely to receive more attention in the future.
Trend No. 4: The All-In-One Approach to Doing Business has become the Norm.
The market for all-in-one HR software is expected to grow as businesses place a higher value on streamlining operations and providing a positive work environment for their employees. These systems combine disparate datasets into a unified whole, improving data accessibility and user experience. This 2023, HR software providers will enhance their offerings by releasing new features.
Trend No. 5: Mergers and Acquisitions Reshape the Market.
Brokerage transactions remain the sector’s primary source of deal activity. Brokerages acquiring other brokerages, point solutions in the HR and benefits arena merging and even large tech companies purchasing insurances to rapidly expand their capabilities are all signs that the benefits business will continue to consolidate.