November 2, 2005
| Contact: | Anne Steinberg or Greg Jones Kitchen Public Relations 212-687-8999 anne@kitchenpr.com or gjones@kitchenpr.com
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Conning Research: Worksite Marketing of Voluntary Benefits Struggles Amid Employee Confusion and Inertia
(Hartford, CT) November 2, 2005 - The increases in employee benefits choices and the resulting portability of benefits has created confusion in the employee benefits marketplace, according to a new study by Conning Research and Consulting, Inc.
"Our analysis of the worksite market indicates that many of the issues that came into play during the movement from defined benefit pensions to defined contribution plans may well be playing out in the transitions underway in portable life and health insurance," said Terence Martin, analyst at Conning Research & Consulting. "Increased choice can create confusion and the need for increased information in the selling process. Once the employee must actively choose a benefit, inertia may result in lower penetration in voluntary products."
The Conning Research study, "Changing Products for Worksite Marketing: Voluntary Benefits and Portability," analyzes and presents the issues that worksite marketers face in selling voluntary benefits and product portability enhancements.
"Long term, the market is moving towards a 'unified defined contribution plan' for all insurance-related benefits," said Stephan Christiansen, director of research at Conning Research & Consulting. "However, a major obstacle to a fully integrated system is that life and health insurance both lack the necessary combination of portability, affordability, and favorable tax treatment. Between now and the 'unified' future, insurers need to work with employees to inform their choices."
"Changing Products for Worksite Marketing: Voluntary Benefits and Portability" is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com.
About Conning Research & Consulting, Inc.
Conning provides both public and proprietary research as well as consulting services to the financial services industry. The Conning name has represented excellence in independent insurance industry research for more than 90 years. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and can provide in-depth insights and analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.
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