4 Trends Benefits Brokers see for 2022 — and What Employers Can Learn From Them

Top brokers voice-in on the latest employee benefit challenges and opportunities

Staying up to date on all of the latest risks, trends, and protection products is a full time job for Employee Benefits Brokers — and the HR professionals they advise. Keeping a pulse on employee needs and enterprise risks is essential to assembling a benefits package that meets your employees’ needs and mitigates enterprise risk.

Each year, top brokers from across the nation come to the BenefitsPRO Broker Expo to get up to speed, exchange ideas, and gain valuable insights they can bring back to their clients.

As a proud Platinum Sponsor of this year’s event in Austin, Texas, IDX sales executives Kristy Mouser and Ryan Mumma enjoyed the opportunity to sit down with a VIP group of distinguished brokers to gain insight and reflect on how COVID has reshaped the benefits industry. In this post we’ll share the 4 key trends that emerged from our conversation.

Special thanks to Benefits Pro editor-in-chief Paul Wilson who moderated and all the brokers who participated in our candid discussion!

#1: Employees are navigating more risks online, thanks to the COVID cybercrime boom

Cybercrime is up 400% since the beginning of COVID. The average person encounters about 18,000 trackers from websites and apps every month. The numbers are eye-opening, but they reflect sentiments experienced brokers know all too well.

The topic of phishing attacks and how employees still struggle to identify them was met with lots of nodding heads. Broker’s anecdotal experiences dovetail with the latest cybercrime data: employees are facing more privacy risks online than ever before. However, there’s still a gap in understanding of how to address digital privacy risks.

"Privacy as a proactive way to prevent identity theft,” Kristy Mouser explains. The less personal information cybercriminals have access to, the less fodder they have to mount an attack. Brokers who had the opportunity to demo IDX’s latest feature, ForgetMe, were surprised to find out just how much of their own personal information was available online!

As one broker described, “It’s one thing to hear about privacy risks, it’s another thing to put in your name and see ‘there are 84 data brokers who are selling my info’”. (Curious how many sites sell your personal information? You can try ForgetMe for yourself to find out.)

Employer takeaway: Help employees understand how personal privacy impacts their risk of identity theft. Give employees access to proactive privacy tools, like ForgetMe or a Password Manager, that empower them to protect their privacy.

#2: Employers are navigating new risks from the shift to WFH and BYO Device

The rise in employee privacy risks translates directly to a rise in employer cyberattack risk.

When millions of employees left the office to work remotely in March of 2020 they also left the controlled environment of secure corporate networks and IT-governed devices. Those vulnerabilities — coupled with the rise in cybercrime and scam-spotting abilities impeded by the general stress and numerous distractions of #quarantinelife — expanded the threat landscape for employers, virtually overnight.

However, brokers reported many employers aren’t actively asking for employee privacy protection. (A BenefitsPRO survey found about two-thirds of employers currently or plan to coverage — but 29% of employers don’t have plans to offer employee privacy protection.) This suggests there’s a gap in understanding of how employee privacy risks impact enterprise risk.

“IDX is #1 in the country on Breach Response, so we get to see how breaches happen,” explains Kristy Mouser. “88% are caused by employee error, and that influences our roadmap on the Employee Benefits side.”

Employer takeaway: Privacy protection is a proactive solution to mitigate enterprise cybersecurity risks. Remote workers in particular need access to privacy tools like a VPN to secure public wifi and Tracking Blocker to disable tracking on their personal devices.

#3: Shift to virtual open enrollment has been a struggle — and employees pay the price

When asked about the challenges brokers face the response was almost unanimous: virtual open enrollment has made it harder to engage employees and provide the guidance they need to make informed benefit decisions.

“Brokers are invaluable for sitting down with employees and walking them through the details of a plan,” said Ryan Mumma. “That’s a lot harder to do virtually when employees might be distracted or feeling Zoom fatigue.”

This has led to very low enrollment numbers, particularly for voluntary benefits. Brokers lamented that, without someone there to explain the coverage, employees are not selecting the coverages they really need and often just select the least expensive option.

“Voluntary benefits may be fine for something like pet insurance, but don’t chance it for privacy protection,” cautions Mouser. “You don’t want to tell an employee who just had their identity stolen that they could’ve been covered but aren’t.”

Employer takeaway: Simply offering benefits isn’t enough to ensure your employees (a.k.a. your essential human resources) are sufficiently protected. Opt for employer-paid coverage for benefits that directly protect both your employees and your organization. Investing time to ensure employees understand the coverage available to them will help maximize the ROI of your benefit dollars.

#4: Staffing shortages mean the pressure is on for HR to assemble robust benefit packages

Brokers working hand in hand with Human Resources have endured a wild ride over the past few years as the Great Resignation morphed into the Great Reshuffle. The pressure has never been higher to assemble a benefits package that helps attract and retain top talent.

Employees are trading up for work environments where they feel heard, catered to, and cared for. Perks are out — real value is in. HR needs benefits that have demonstrable value in the eyes of consumers, deliver on their value, and can stand up to scrutiny from the bottom line. For brokers, proactive privacy protection is an opportunity to meet all three client needs in one product.

“We've seen a huge shift to employer-paid (privacy protection) coverage, because of the true protection it offers against the risks that come with remote work and use of personal devices,” said Mouser. “It’s also a cost-effective way to beef up benefits.”

This tracks with a recent BenefitsPRO survey that found 90% of employers believe their employees want privacy protection — and two thirds of employers either already offer privacy protection or are planning to do so.

Employer takeaway: To stand out in a competitive job market, benefits must deliver real value and align with current consumer demands. Take employee privacy demands seriously, especially if your employees work remotely or BYO Device. Proactive privacy protection is a cost-effective way to add value to your employer paid benefits offering and a smart business decision.

Summing it Up

After a thought-provoking afternoon with some of the nation’s top brokers one thing was clear: benefit brokers hold a wealth of knowledge and serve a valuable role in navigating ever-changing enterprise privacy risks.

At IDX we’re proud to work with exceptional brokers who serve leading organizations — from Fortune 500 companies, to government agencies, to forward-thinking small and mid-sized organizations that employ the millions of people we protect every day.

Get in touch today to set up a demo for your team — and your broker.