2023 Voluntary Benefits Predictions:

Ongoing Op-purr-tunities and Powerful Pet-tential

2022?

Yes, it was a rocky year out there for many companies, but not here in the pet health insurance industry. In fact, the North American Pet Health Insurance Association (NAPHIA)’s 2022 State of the Industry Report found that industry growth has more than doubled since 2018!

And it’s not slowing down. 2023 promises to bring new opportunities for employee engagement and growth.

Our benefits experts have their noses to the ground, sniffing out what’s new and trending in the voluntary benefits world. Here’s what they predict for the coming year.

Voluntary Benefits Trends

Current voluntary benefits trends reflect the push and pull that employers feel as they seek to meet the needs of their employees while still remaining competitive in the marketplace. On the one hand, the Great Resignation is real, and offering a more diverse selection of benefits can be extremely effective at attracting and retaining employees. But inflation is equally real, and budgetary concerns are top of mind for many employers and employees.

1. We’ll see more technology enhancements to better personalize the employee benefits experience. (Amy Crane, VP, Voluntary Benefits)

“AI programs will ask targeted questions to recommend a benefits portfolio for the employee,” Amy explains. With recent advances in AI, the technology exists, and it’s only getting better. More businesses will be including recommendation engines in their enrollment process. These tools assess an employee’s risk tolerance, financial preparedness, and health. Then they recommend a best-fit benefits package. The process takes minutes and is accessible 24/7.

2. Financial counseling voluntary benefits will be popular in 2023, especially for people contributing to their 401ks and thinking about retirement. (Dena McGrath, Client Relationship Manager)

“Families feel the effects of inflation and want to combat it by taking control of their finances,” says Dena. Certified financial professionals can offer counseling through one-on-one sessions, group seminars, and webinars.

3. Employers will offer more financial resources, such as student loan or credit card debt assistance. (Amy Crane, VP, Voluntary Benefits)

According to the Federal Reserve, 30% of all adults collectively owe more than $1.7 trillion in student loans. And, also from the Federal Reserve, Americans’ credit card debt rose to $925 billion in the third quarter of 2022. Going beyond financial counseling, some employers now offer debt repayment programs. This benefit grew dramatically thanks to the 2020 CARES Act, which allows employers to pay up to $5250 annually in employee student debt, tax-free.

4. Employers will focus on offering affordable VBs that the employees can easily understand. (Diane Page, VP, Voluntary Benefits)

Many companies offer valuable VBs, but employees don’t sign up because they don’t understand them. For example, employees may not understand the nuances between cancer coverage, critical care coverage, and gap medical coverage. Often, employers need to educate their employees to help them understand the nuances and value of their benefits. And given the short amount of time most employees spend choosing their benefits during open enrollment — often 30 minutes or less — it’s even more important that benefits are immediately clear and accessible.

5. We’ll see more mental health resources to help employees with cost-effective ways to support their mental well-being. (Amy Crane, VP, Voluntary Benefits)

The workforce is still feeling the emotional effects of COVID, and mental wellness is a priority for the growing number of Gen Z employees. These resources can take many forms. Lifestyle Spending Accounts (LSAs), for example, allow employees to spend on emotional wellness. Options include meditation classes, retreats, or park passes. Telehealth benefits are also important. Telehealth has become a primary option for mental and behavioral health treatment—and for pet health, too!

Pet Benefits Trends

Pet benefits are constantly evolving to serve pet families better. As with general voluntary benefits, affordability is top of mind for 2023. Offering affordable pet benefits, therefore, may be a motivator that employers can use to engage their pet parents.

1. The top pet benefit trend of 2023 will be true pet insurance offered with discounted pet benefits. (Dena McGrath, Client Relationship Manager)

Many pet parents enroll their younger furry friends in traditional pet insurance, such as Wishbone. “This ensures coverage for the accidents and illnesses that inevitably happen during their lifetime,” Dena explains. But they also appreciate the low-cost advantage of discounts on prescriptions, pet products, and vet visits. Discount plans such as Total Pet Plan save money throughout the year. Having both traditional insurance and a discount plan gives pet parents more comprehensive coverage. And offering both plans to employees gives them the option of choosing the one that makes the most sense for their pets and budget.

2. A trend I’m starting to see more frequently is employer-subsidized pet benefits. (Diane Page, VP, Voluntary Benefits)

“This is not the leading trend,” emphasizes Diane, “but it is an interesting one that’s worth considering.” Total Pet Plan, in particular, gets subsidized since it’s so easy to offer and the company’s costs are very predictable. “But I also have clients covering part or all of the true pet insurance,” she adds.

3. Employers and employees will be more price sensitive this year, weighing cost vs. benefit. Pet benefit companies will add more value, such as wellness or discount options, for as minimal cost as possible. (Amy Crane, VP, Voluntary Benefits)

Employees are asking tougher questions about their pet benefits. Does the plan include routine care? Can they purchase a wellness rider? Which wellness services are included? How much is the annual wellness benefit? What’s the reimbursement for each service? Offering a pet benefits plan with the best answers to these questions and more will be increasingly critical for engaging savvier pet families.

4. The most important pet benefits trend will be more companies offering pet benefits! (Diane Page, VP, Voluntary Benefits)

This trend has been growing for several years running and it’s not slowing down. Companies who survey their employees find that pet benefits are one of the most popular requests. “I recently had a client who wanted to add pet benefits to their offering ASAP,” Diane recalls. “That client’s lack of pet benefits had just been mentioned in two different exit interviews!”

With 85 million pet families in the U.S., pet benefits are a top way to please employees. And since only 15% of employers currently offer pet benefits, it’s a great differentiator for recruitment. 2023 may be the purr-fect time for your company to add or upgrade pet benefits.