Key Findings & Highlights:

NelsonHall’s market analysis of the Next Generation H&W Administration market  consists of 65-pages.

Key market developments include:

• The H&W administration market is estimated at to be worth ~$9,205m in 2020 where manufacturing is the greatest sector with an 18% market share. Sectors that saw the greatest growth were manufacturing, retail, energy & utilities in 2019. The largest market is the U.S.
• Market drivers were reducing administration costs, primarily sought from improving digital processes and increasing automation with better technology. Reduced healthcare costs and improved health outcomes were also market drivers
• Operational costs and activity increased for administrators due to COVID-19 related activities such as managing furlough arrangements
• RFPs are trending toward total solutions and providers look for more cross-sell opportunities
• Market consolidation from investments in midmarket capability was evidenced through the Alight Solutions acquisition of Hodges Mace

• The blending of technology and service to deliver H&W administration has  become tighter with investments made in communications solutions, AI, intelligent chatbots as well as supporting handoffs to real agents for a seamless delivery. To differentiate services, vendors focus on a ‘best in class’ digital client experience, digital innovation and inclusive of omnichannel support and benefit counselors
• Vendors expanded their H&W partnerships and defined new H&W categories to help fill 'white spaces’, deliver more integrated H&W solutions and offer a more holistic approach to H&W via marketplaces. Some providers changed focus from building large H&W marketplaces towards narrower network options with vetted H&W providers, this gives them bandwidth to integrate and develop closer partnerships, leverage cross-selling opportunities and better align solutions.
• Technologies leveraged include CRM, API, RPA, and analytics. The majority of technology solutions around the participant experience are centered on helping employees become more effective consumers using decision tools, with health navigation, and with personalization centered on life events
• Technology solutions to improve operational efficiencies continue to be made, such as dependent verification and character recognition on forms and digital voice coaching for scanning
• H&W Administration services buyers rate the calibre of personnel and strength of partnership very high as it relates to service satisfaction. However, the speed of transformation of the service and process is rated less favourably as shown below.