Selling employee benefits successfully in today’s market requires a range of skills, including addressing employee concerns, engaging regularly, and highlighting how these benefits improve employees' well-being and financial security. Kara Hoogensen, Senior VP and Head of Workplace Benefits at Principal, shared insights on the growing trends in the employee benefits market for 2025, focusing on personalization and evolving offerings. Click here for article.
Key Market Insights:
Popular employee benefits include health benefits, life insurance, retirement plans, wellness benefits, and profit-sharing.
U.S. workplace supplemental health product sales reached $543 million in Q3 2024, with accident, critical illness, and hospital indemnity insurance showing an 11% growth.
Workplace life insurance is expected to grow by 3% in 2025, and both long-term and short-term disability benefits are projected to exceed their historical averages.
Emerging Trends for 2025:
Personalization: Employees increasingly value personalized benefits that suit their individual needs and financial goals.
Employee-Paid Options: Employers can offer more flexibility by providing employee-paid benefit options at no additional cost to the business.
Rising Healthcare Costs: Products like accident, critical illness, and hospital indemnity insurance are in high demand to manage medical expenses.
Impact of the Trump Administration:
Paid Family and Medical Leave: Bipartisan support for PFML could lead to expanded access for more individuals and families.
Tax Provisions: The expiration of Tax Credits and Jobs Act provisions may influence discussions around paid family leave and child tax credits.
Supplemental Benefits Education: Employers have an opportunity to educate their teams on the role of supplemental benefits like accident and critical illness coverage.
Tips for Success in 2025:
Use of Digital and Human Resources: Financial professionals should combine digital tools with personalized communication to effectively engage employers and employees.
Hybrid Approach: Employers prefer a mix of human and virtual resources when learning about benefits or adding new ones, making it crucial for agents to tailor experiences to client needs.
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