The fall of personalization and rise of anticipatory benefits

• Key Insight: Discover how anticipatory benefits, not personalization alone, shifts benefits administration strategy.
• What's at Stake: Failure to anticipate needs could increase claims and erode workforce productivity.
• Forward Look: Expect increased AI-driven consolidation and proactive benefit workflows across vendors.
• Source: Bullets generated by AI with editorial review

For benefit leaders, it's no longer enough to just respond to employees' requests — staying competitive now means anticipating needs before they arise.

Sixty-five percent of employees want more personalized benefits, according to Aon. But the new way to  stay ahead is to   predict and address benefit needs before they surface. In an effort to do just that, business management company Businessolver launched a new AI-backed benefit administration process aimed at getting employees helpful support as early as possible. 

"Personalization isn't going anywhere, but it's hit a ceiling and it can't really go any further," says Katie Carroll, VP of product marketing and strategy at Businessolver. "That's why we developed a whole new user experience, to make our benefit administration technology and service more rooted in the principle of anticipation rather than personalization." 

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The company's new benefits administration process is built around using data to anticipate what employees might need before they even ask. It does this by using technology to analyze chatbot transcripts, feedback submissions, personal information, service calls and on-platform activity, and spot patterns — like when someone repeatedly visits a dependent-care FSA page, or asks multiple questions about medication. That data feeds into the company's new AI tool, Sophia, which can prompt proactive nudges to the employee or alert benefit leaders to step in. The goal is to move beyond reactive support and instead use data more strategically to provide timely, personalized guidance.

To exemplify this, Carroll and her team have been sharing a hypothetical story of an employee that works in manufacturing, and has long hours filled with strenuous activity including lifting heavy objects and bending constantly.  

"Personalization would wait for that employee to get hurt and to have a back injury, and then submit a really expensive claim," Carroll says. "Whereas [an anticipatory approach] would reach out to let him know his company offers certain benefits that fit his needs, along with practical stretching or ergonomic tips that can help before he gets hurt."

A new benefit approach

Whether or not leaders partner with Businessolver, Carroll encourages companies to rethink how they define success when it comes to benefits. For example, traditional indicators like engagement don't always tell the full story. A high engagement rate may sound impressive, she says, but it doesn't necessarily mean employees are actually using the benefit or getting the help they need — it could just mean they clicked on something. 

Instead, employers should focus on more meaningful indicators, such as whether employees are asking fewer questions about their benefits, experiencing better health outcomes or submitting fewer costly claims. 

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Not only does taking a new approach benefit employees, but it could alleviate much of the administrative burden HR and benefit leaders face.

"Even if a company's vendor gets them the data for their benefit, leaders are so swamped with their day-to-day," Carroll says. "Having an AI like Sophia to point out trends and consolidate all of the information they need on one dashboard takes many things off their plate and helps them drive better results."

As leaders continue to search for ways to improve their employee experience, Carroll urges them to think more proactively about their strategies and ensure that they're as connected to their workforce as possible. 

"The industry is ready for this," Carroll says. "We're going to see more innovation and consolidation in this space, and right now benefit administration is sitting right at the middle of everything."