Trends in Benefits Web Technology: 2006 Research Among Benefits Plan Sponsors

1. Trends in Benefits Web Technology: 2006 Research Among Benefits Plan Sponsors

2. Introduction

3. Research Objectives To determine through market studies: • The availability of group life and disability web tools for use by benefits plan administrators and plan participants. • The frequency of use of group life and disability web tools by plan administrators. • The satisfaction of plan sponsors with the performance of group life and disability web tools, in terms of functionality, navigation, content, and accessibility—for plan administrators and participants. • The primary objectives of plan sponsors who have implemented benefits web tools and how well those objectives have been met.

4. Study of Employee Benefits: 2006 & Beyond # Employees Region Industry

5. 2006 Plan Sponsor Web Benchmarking Study Group Life Web Technology Group Disability Web Technology

6. Frequency of Using Benefits Web Tools Among Plan Administrators

7. Functionality Used Most Frequently by Plan Administrators % Doing Each Activity Online Daily or Weekly Net Daily/Weekly

8. Usage of Benefits Web Technology by Company Size Frequency of Use Number of Functions Used* *Low = 2 functions or less; Medium = 3 to 9 functions; High = 10 or more functions

9. Plan Sponsors Making Benefits Web Tools Available to Employees % of Companies Providing Employees Access to These Tools

10. Plan Sponsors Making Benefits Web Tools Available to Employees—By Company Size 68% 59% 48% 10,000+Employees 100-999Employees 1,000-9,999Employees

11. Theme I Removing Barriers to Promote Usage

12. Removing Barriers Overall Satisfaction of Web Benefits Technology—By Usage and Number of Functions Used Online Tool Usage Number of Functions Used* *For number of functions used, the categories were created by counting the number of functions used on a daily or weekly basis: Low = 1 function or less; Medium = 2 to 9 functions; High = 10 to 12 functions

13. Ease of Navigation is Key to a Positive User Experience and to Increasing Utilization Benefits Website Attributes: Plan Sponsor Satisfaction vs. Importance -12 Gap -2 Gap +26 +21 +34

14. Site Navigation Needs to be More Intuitive for the Less Frequent Users Plan Sponsor Satisfaction With Navigation of Benefits Websites— By Frequency of Use

15. Removing Barriers to Promote Usage

16. Theme II Making Plan Administration Easier to Realize Cost Savings

17. Plan Sponsors Expect Greater Efficiency from Use of Benefits Web Tools Extent to Which Benefits Web Technology Makes Job Easier Ease for Plan Administrators By Company Size

18. But Time and Cost Savings Have Yet to Be Fully Realized Benefits Website Attributes: Plan Sponsor Satisfaction vs. Importance -39 Gap -32 Gap -29 Gap -29 Gap -26 Gap -24 Gap -22 Gap

19. Making Plan Administration Easier to Realize Cost Savings

20. Theme III The Future Looks Bright—Coming Soon

21. The Future Looks Bright—Coming Soon Areas of Greatest Future Growth for Web Benefits Tools Plan Sponsors Employees Point Change +21 +16 +16 +16 +30 +28 +25 +24 +21

22. Increased Adoption of Benefits Web Technology will Continue in Many Industries Plan Sponsor Willingness to Adopt New Technology—By Industry % of Total Sample 13% 16% 30% 28% 13% 39% 34% 34% 32% 31% 30% 29% 28% 26% 26% 23% 20% 20% 20% 20% 19% 17% 16% 16% 14% 13% 13% 13% 12% 9% 9% 8% 6% 4% 3% AT THE FOREFRONTof technology SOMEWHAT AHEAD of the market in adopting new technologies KEEP PACE with the market in adapting new technologies TEND TO FOLLOW the market and only adopt proven technologies RELY ON LEGACYtechnologies All Employers Heavy Industry Manufacturing Sales/Trade Finance/Ins/Real Estate Services

23. The Future Looks Bright

24. Questions & Answers

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