Securian Study Reveals Competitive Pricing Biggest Factor in Group Life Insurance

According to a survey of large employers by Securian Financial Group’s Group Insurance unit, competitive pricing is highest among employers’ considerations for choosing a group life insurer. This, according to the survey, holds true for the consultants and benefits brokers who market group life to employers.

“We found that hassle-free administration is more important now among employee benefits administrators and among brokers and consultants who market benefits to employers,” said Paula Bilitz, Director, Group Life Insurance Marketing, Securian Financial Group.

The top considerations for employers for this year’s survey include:

1. Cost-competitive products – This factor moved up to number one in 2014. In the 2011 study, “tailoring benefits” was first

2. Benefits tailored to employers’ needs

3. Hassle-free administration

4. Easy to do business with – Benefits administrators ranked this factor sixth in 2011

Top considerations for benefits producers:

1. Cost-competitive products

2. Hassle-free administration – Producers placed higher importance on this factor than in the 2011 study

3. Benefits tailored to clients’ needs

4. Easy to do business with

The study also showed  that even though adoption of social media channels to communicate with employees is still pretty low, producers and administrators who engage employees via social media has increased. Survey respondents said they believe:

• A carrier’s mobile apps demonstrate technology leadership (44%)
• Use of social media shows the carrier is keeping up with the times (36%)
• Use of social media shows forward thinking on the part of the carrier (33%)