Insurance Daily News

OneDigital Executives Outline Strategy for Benefits Consulting

OneDigital is adjusting its approach to employee benefits consulting to address rising healthcare costs, complex plan landscapes, and the emergence of AI-native competitors. Bill Carew, president of OneDigital, and Emily Bailey, Regional President for the firm’s East Region, recently discussed the evolution of the industry and the necessity for advisors to adapt their strategies.

Bailey, who has over 20 years of experience in the sector, identified increasing complexity as a primary challenge for the industry. She noted that as costs have risen, plan designs have become more intricate, often shifting risk to consumers and making it difficult for employees to understand their coverage. This complexity includes a wide array of options such as health savings accounts (HSAs), health reimbursement arrangements (HRAs), individual coverage health reimbursement arrangements (ICHRAs), narrow network options, and self-insured models.

Consequently, the role of the consultant has evolved from transactional product placement to year-round advocacy and education. Bailey emphasized that the job is no longer limited to open enrollment periods but requires engagement and communication throughout the entire year. Carew added that advisors must anticipate market shifts and potential solutions before they become standard, comparing the current state of benefits consulting to the era of personalized medicine. He argued that cost management strategies must be tailored to specific population demographics, risks, and local healthcare economic dynamics.

To manage these demands, OneDigital is utilizing AI-native analytical tools. Carew explained that the firm is applying computing power to administrative tasks, which allows consultants to dedicate more time to strategic financial analysis and direct human interaction. He highlighted that AI is most effective when used to solve client cost issues and support individuals navigating the system.

However, both executives stressed the importance of maintaining human expertise. Bailey cautioned that the industry must not overlook the value of deep subject matter expertise, which allows advisors to interpret subtle nuances in language and human emotion. Carew noted that automation cannot replace the human support required when guiding individuals through life-altering medical diagnoses.

Regarding industry consolidation, Carew expressed concern about the potential loss of mentorship opportunities for newer professionals. He noted that the shift toward remote work has made it harder for younger staff to learn alongside experienced colleagues. Bailey, conversely, views the talent shortage as an opportunity for firms to create structured career paths and attract new talent to the industry, emphasizing the need for mentorship to prepare the next generation of advisors.

Why it matters

As the benefits consulting landscape shifts toward AI-driven personalization and year-round advocacy, firms must balance technological efficiency with the critical need for human expertise and mentorship to remain competitive.

FAQ

What specific plan structures are contributing to industry complexity?
Complexity is driven by a variety of options including HRAs, ICHRAs, HSAs, narrow network options, and self-insured arrangements.

How is OneDigital using AI in its consulting practice?
The firm uses AI-native analytical tools to process population-specific data, aiming to automate administrative tasks so consultants can focus on strategic financial analysis and human support.

What concerns do OneDigital executives have regarding industry consolidation?
Bill Carew expressed concern that consolidation and remote work environments may hinder the mentorship of younger professionals who need to learn from experienced advisors.

Source: Insurance Business America. See the original source for full details.