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Employers add accident and other coverage as benefits literacy lags
Accident coverage adoption rose from 30% of employers in 2024 to 41% in 2025, while utilization of supplemental plans remains low without ongoing education.
U.S. employers are absorbing record cost pressures without broadly passing them to workers, instead adding more benefit coverages to help employees manage affordability gaps, according to Insurance Business Benefits. Nicole Negvesky, Executive Vice President of Employee Benefits at Alera Group, said the result is a more complex menu for employees to navigate, with some workers choosing among as many as four medical plans, two dental options, and multiple voluntary coverages.
Alera Group’s benchmarking data shows accident coverage increased from 30% of employers in 2024 to 41% in 2025, signaling how quickly supplemental products are being layered on. Negvesky said the key problem is that benefits education and support for informed decision-making has not kept pace with that growing complexity. Negvesky argued that employers and their brokers share responsibility, and that one-time communications such as an open enrollment meeting or a benefits guide sent once a year are no longer sufficient. She said education needs to be continual, concise, clear, and frequent, with short-form video identified as one practical tool to help close the education gap, tailored to a multigenerational workforce.