Employee Benefits Market Overview
Global benefits service providers are focusing on entering emerging markets such as APAC and Eastern Europe by partnering with regional and local service providers. As an initiative to consolidate spend on employee benefits, Fortune 500 companies are entering into multi-country BAO (Benefits Administration Outsourcing) engagements with global service providers. The majority of the buyers of the employee benefits in APAC and the Middle East have started spending about 5-7 percent of the total benefits spend on technology platforms. This allows them to yield a higher employee engagement and higher enrollment rate, thus leading to increased cost savings.
The report addresses regional employee benefits market overview constituting market size, growth rate and key suppliers in North America, Europe, Middle East, APAC and LATAM regions. It also discusses BAO impacting factors and Porter's Five Force Analysis. The report covers the market analysis of top 50 benefit brokerage firms. It shares a suppliers' profile analysis on the key regional suppliers like MetLife Inc., Aon Hewitt, Aetna Inc., Fidelity Investments etc. The report also identifies cost and pricing analysis and the procurement best practices in the BAO services.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Employee Benefits Market Trends
Category Intelligence on Employee Benefits covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Employee Benefits Management Global Industry Outlook
The global benefits management market is valued at $32 billion in 2016.
- The market is forecasted to grow at a CAGR of 5–6 percent and reach $36 billion in 2018.
- Regions such as Europe and North America and parts of APAC such as Australia, Japan, Hong Kong and Singapore have high market maturity.
- South Africa, India, Brazil and China are expected to be the future growth driving markets for benefits management services.
- KPIs for employee benefits management include the accuracy of processing payments, HR data timelines and third-party interface timelines.
- The major cost components in the employee benefits market include: Administrative costs: 35 percent, Outsourcing costs: 10 percent, Technology:10
percent, Compliance & Documentation:15 percent.
- Employee Benefits Spend Categories can be divided into:
(i) Mandated Benefits (Social Security Insurance, Workers Compensation, Unemployment Insurance)
(ii)Sponsored Benefits (insurance, benefits, retirement benefits, medical assistance benefits and expatriate benefits)
- The global contract operates on a PEPM pricing model, while the spend volume portion of the contract operates on a commission based or a combination of
hybrid pricing models. These are the methods widely prevalent in the industry. Emerging countries in the Asia Pacific and Latin America outsource tactical
activities such as claims administration, reimbursement, call centre support, and data entry through local engagement for a contract duration of 1–2 years.
- Major growth drivers in the North American BAO market include the introduction of the Healthcare Reform Act by the Obama Administration and the rising cost of drugs. Others include web-based decision-making analytics tools and the emergence of healthcare exchange offered by mature BAO providers
Employee Benefits Management Global Market Maturity
Global benefits service providers are focusing on entering emerging markets such as APAC and Eastern Europe by partnering with regional and local service providers
- As an initiative to consolidate spend on employee benefits, Fortune 500 companies are entering into multi-country BAO engagements with global service providers
Employee Benefits Management Industry Trends
- The global BAO market has increased by 5 percent since 2014; this has been realized due to the scalability of the suppliers who have been able to adapt to the changing business needs.
- The European and North American BAO market accounted for about 60 percent of the global market share in 2016. The U.S., UK, Germany and Australia are the most mature countries, in terms of single-country BAO deals.
Why You Should Buy This Report
Global Benefits Management Market drivers and constraints and regional market outlook in areas like North America, Europe, Middle East and Africa. The report lists out the opportunities and challenges in each of these regions. The benefits of market research include a report on the Porter’s five force analysis of developed and emerging markets. The report gives insights into supply trends and does a SWOT analysis of major players like Aon Hewitt, MetLife Inc., Aetna Inc., Fidelity Investments, etc. It gives a cost and pricing analysis and a pricing forecast.