Prudential Unveils Results Of Benefit Plan Sponsor Perspectives On Trends In Benefits Web Technology

Newark, NJ - Prudential Financial, Inc.'s Group Insurance business announced recently the findings of the latest in a series of research reports entitled, Trends in Benefits Web Technology: 2006 Research Among Benefits Plan Sponsors. The report provides a synopsis of key trends in online benefits technology from both an employer and employee perspective culled from two recent market studies conducted by Prudential.

"Our research helps our clients make informed decisions about their company's benefits offerings, benefits administration, as well as staying competitive when it comes to attracting and maintaining a talented workforce," said Jean Wiskowski, vice president of marketing, for The Prudential Insurance Company of American's Group Insurance business. "Prudential is committed to being a thought leader in the group insurance industry and identifying current trends and happenings in the marketplace is a cornerstone of how we stay ahead of the curve when it comes to offering our clients the best service and products possible."

The key themes identified in Trends in Benefits Web Technology provide valuable insight into the evolving landscape of benefits servicing and administration. This research is designed to assist plan sponsors, brokers/consultants, third-party administrators, and other key stakeholders in developing their business plans with an eye toward the future. Emerging themes from the study providing insight into the evolving landscape of benefits include:

1. Benefits Web Technology Has Arrived—And There Is No Going Back. Many plan administrators use web tools on a daily or weekly basis in managing their benefits programs, including group life and disability. The most common functionality available today is still primarily "brochureware," as well as claims and statement of health status inquiry and reporting. For many plan sponsors, web technology is a critical component of their larger business and employee benefits strategies.
2. Fulfill the Promise—Benefits Web Technology Performs Well, but Falls Short of Plan Sponsor Objectives and Expectations. Plan sponsors expect web technology to help them manage benefits plans more efficiently and effectively almost immediately upon implementation. Thus far, most employers still believe that the Internet is an essential service channel going forward but that these tools are not fully delivering on their corporate objectives for cost savings, improved quality, and efficiency.
3. Go Back to Basics— Ease of Navigation and Basic Functionality Drive User Experience. Making benefits web tools as intuitive and easy to navigate as possible can help to ease the transition and mitigate the natural reluctance of benefits administrators and plan participants to using new web technology. Also, offering functionality that performs at least as well, and preferably better, than off line alternatives are key to driving utilization and user satisfaction.
4. Demonstrate the Value—Removing Hurdles to Increased Utilization of Benefits May Lead to Higher Plan Sponsor Satisfaction. Benefits administrators who are the most frequent users and who use the broadest range of online functionality are also the most satisfied with the performance of web tools. These "power users" have integrated the online systems into their daily routine and therefore, navigation and ease of use are non-issues. Providing plan sponsors with the necessary initial training and ongoing tech support to facilitate increased utilization will result in improved comfort and satisfaction.
5. The Future Looks Bright—Use of Benefits Web Technology Will Continue to Grow Over the Next Five Years. Use of web tools to support benefits plan administrators as well as for employee self-service is expected to further expand through 2010, primarily for transactional functionality such as billing, enrollment, and claims submission. This trend is true among companies of all size categories, but particularly for smaller and mid-size firms, where adoption of web technology has lagged behind that of larger firms in the past decade.

Wiskowski noted, "In the past decade, plan sponsors have increasingly turned to web technology to improve the efficiency and effectiveness of their benefits administration, including group life and disability. Our research highlights how employers' reliance on online tools is only expected to increase in the years to come."

Prudential conducted several market studies across industries and market size to gauge employers' and employees' overall usage and satisfaction with their group insurance carriers' web-based tools and to gain insight into the trends in benefits web technology over the next five years. The Trends in Benefits Web Technology: 2006 Research Among Benefits Plan Sponsors report includes data about 10 different insurance carriers from two of those studies—Study of Employee Benefits: 2006 & Beyond and 2006 Plan Sponsor Web Benchmarking Study. Visit www.prudential.com for a complete copy of these reports.

SOURCE: Prudential Financial, Inc.