Several key trends – primarily driven by the COVID-19 pandemic and the economic and emotional challenges it caused – will shape the group benefits industry this 2022, experts said.
In a recent advisor webinar, Canadian Life and Health Insurance Association (CLHIA) president and CEO Stephen Frank and Empire Life president and CEO Mark Sylvia sat down to identify these trends and gauge just how much the pandemic has impacted the industry.
The two discussed how the group benefits industry managed to keep things together despite COVID-19 and its complications.
One of the main trends the two identified for this year is the increase in mental health support. While not an entirely new trend, mental health support continues to be a very relevant topic as the pandemic takes its emotional toll on employees.
"Mental health has been brought to the forefront during the pandemic and the demand for mental health services for Canadians is only going to increase," said Sylvia. "Insurance companies have put programs in place to provide access to mental health counselling supports and services which often can now be provided online, making them more accessible. People are aware of and value these types of services in their benefits plans now more than ever."
Another trend identified was the industry’s use of technology and the digital delivery of services – a must in this time of remote work and no-contact business.
"We've just experienced a once in a 100-year health crisis, and group health benefits have come through that extremely well. It demonstrates how resilient and well-prepared the industry was to support employers and Canadians through this pandemic,” commented Frank.
"There was a lot of concern at the outset about layoffs and what will happen to benefits plans, but we found employers were very protective of those benefits; they recognized the value in them and took steps to protect them,” added Frank. "At the same time, our industry stepped up to roll out premium reductions and deferrals to put money back in the pockets of employers and to help keep those plans and benefits in place for Canadians."
Strategic plan design to keep benefit plans affordable was the last trend the two discussed. Frank and Sylvia spoke about national pharmacare, and the need for both the government and insurers to work together in order to negotiate lower drug prices. The high cost of specialty drugs and the increase in long-term disability claims and mental health services have also contributed to the rise in benefit plan costs, the two emphasized.
