The 2025 Agent's Guide to Employee Benefits Trends

The 2025 Trends for Group Benefits Plans

If there is any word to sum up the recent years for group benefits agencies, plan providers/carriers, and employer groups, it would be "change." The MarshMcLennan Agency's 2024 Employee Health & Benefits Trends Report states: "In the fifth year of a decade marked by unprecedented economic and geopolitical uncertainty, employers are under more pressure than ever to support their workers."

Read through this blog to learn about five of the hottest trends for group benefits plans, then download the report for a deeper dive into how agencies can make the most impact this year to sell more, retain more, and grow.

5 Trends for Group Health Insurance Plans in 2025

1. Rising Costs of Living & Healthcare

As costs continue to surge, employers are seeking innovative ways to manage expenses while offering competitive group benefits health insurance. Telemedicine, health savings accounts, and wellness incentives are becoming key strategies to improve healthcare affordability. The growth in level-funded plans is also notable, providing a middle ground between fully-insured and self-funded options.

2. Focus on Holistic Health & Well-Being

Mental health support is becoming increasingly crucial in the workplace, with 90% of employers offering mental health coverage. Employers are expanding their focus beyond traditional health insurance to encompass total well-being, including financial health offerings. This holistic approach aligns with the other trends for group benefits health insurance in 2025, addressing employees' physical, mental, and financial needs.

3. Growth in Personalized & Flexible Benefits

Access to more plan types is another key trend for 2025, allowing employees to customize their benefits package. Voluntary benefits, such as supplemental health and pet insurance, are gaining popularity. This flexibility caters to the diverse needs of a multi-generational workforce. Other popular voluntary benefits for 2025 include:

• Critical illness coverage
• Personal accident insurance
• Hospital indemnity plans

This personalization trend allows employees to tailor their benefits package to their individual circumstances, enhancing overall satisfaction and retention.

4. A Desire for More Financial Health Offerings

Financial wellness continues to grow in popularity amongst employers and employees. Optavise noted that: “about 34% of employers are considering adding financial wellness programs in the next one to two years.” Additionally, there has been growth in lifestyle spending accounts (LSAs), which could cover work-related expenses like home office, commuting, professional development, etc.

5. A Focus on Work/Life Balance

Paid time off and work/life balance are highly prized, with many employees willing to sacrifice pay for greater flexibility. This balance aligns with a growing demand for remote, hybrid, and flexible work arrangements. Some employers are responding by offering consistent policies and investing in collaboration tools to support various work environments.

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Making 2025 Your Agency's Year for Benefits Sales

As an employee benefits agency, it's your role to help your clients find the coverage they need. The tools and technology your teams use can make the difference. 

AgencyBloc's Plus Suite of industry-specific solutions allows your benefits organization to efficiently prospect, quote, gather MHQ data, enroll, close, retain, and process commissions — all in one platform. Whether you sell self-funded, level-funded, fully-funded plans, or a mixture of all three, our solutions help you sell, retain, and save time.

See how the Plus Suite can help your benefits team make an impact with a personalized, 1-on-1 demo.

Posted by Allison Babberl on Thursday, March 6, 2025 in Group Benefits

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