Use of internal data in insurance
This briefing note gives a high-level overview of how insurers can make better use of internal data to gain insight and drive competitive advantage.
Employer-sponsored long-term care insurance is more likely to propagate if it’s redesigned into a true group employee benefit. One of the key features of a true group plan is employer contributions toward cost. This element is missing in most voluntary long-term coverage wherein the full benefit cost is passed to employees, resulting in low participation rates and possible adverse selection. Integrating employer contributions into a long-term care plan resolves a number of issues for both parties.
A combination of employer and employee funding is a central tenet of most true group coverages, including medical, dental, life, and 401(k) plans. The presence of employee contributions gives the employees a stake in the coverage, ensures that the benefit has value to the employee, and keeps the cost down for the employer. Employer contributions ensure broader participation, help meet the objective of attracting and retaining employees and providing a safety net, and lower employee costs.
What are the critical questions for a true group long-term care plan?