Advances in the International Employee Benefits Business: Top Five Trends

by Nicolas Michellod, September 22, 2015
Industry Trends
Global

Abstract

The employee benefit market has experienced major changes and will continue to change.


In the report Advances in the International Employee Benefits Business: Top Five Trends, Celent identifies and describes five trends that are playing a major role in the employee benefit markets:

  1. Structural and regulatory changes.
  2. Convergence in employees’ health needs and employers’ demands.
  3. Change in distribution structure.
  4. Innovation and digitization.
  5. Complex value chain fragmentation and competition.

“Because of globalization, many issues related to business, health, and society tend to be more and more common between geographies,” says Nicolas Michellod, a senior analyst with Celent’s Insurance practice and coauthor of the report. “Conditions that impact their employees’ health and productivity encourage companies to look for services beyond traditional benefits schemes.”

This report contains three figures and seven tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Defining Employee Benefits

2

 

Segments and Channels

2

 

Trends

3

Trend 1: Structural and Regulatory Changes

4

 

The Shift from the Public to the Private Sector

4

 

Long-Term Structural Changes

5

Trend 2: Convergence in Employees’ Health Needs and Employers’ Demands

6

 

Employees’ Health Needs

6

 

Employers’ Demands for Value-Added Services

9

Trend 3: Change in Distribution Structure

9

 

Increasing Move to B2B2C and B2C Structures

9

 

Structural Pressure on Intermediary Models

9

Trend 4: Innovation and Digitization

11

 

Selling, Delivery, and Services

11

 

Online Retirement Advice Models

12

Trend 5: Value Chain Fragmentation and Competition

14

 

Degree of Fragmentation

14

 

Competitive Pressure

15

Impact on IT

16

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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