Group auto and home insurance solutions merit exploration 

It’s an unfortunately familiar narrative: Dynamics within the property and casualty market present unprecedented challenges for employees. In the 1980s, billion-dollar weather disasters in the US occurred, on average, once every 4 months. Now, they occur once every three weeks. These increasing instances of billion-dollar weather disasters are contributing to rising auto and home premiums and claims for employees – and making the process of finding the right coverage more challenging.

The time is right for employers to explore offering group auto and home insurance benefits – a way to provide employees with much-needed support in personally securing the most coverage and value.

Group auto and home benefit can expand coverage availability

In the last five years, many kitchen-table conversations about auto and home coverage have shifted from finding the lowest-cost coverage to finding any coverage, especially in challenged states like California and Florida. Some employees in coastal states have had to resort to self-insuring their home coverage, putting aside savings and fully assuming the risk for a large disaster/recovery event.

In the past, when extreme events disrupted insurance markets, carriers have sometimes paused writing new business or removed themselves from a market entirely, leaving employees struggling to obtain coverage. Group auto and home solutions help by broadening the risk pool for carriers, while offering employees greater access to top national and regional auto and home coverage providers — a win-win for both parties.  

Unlocking savings through group benefits

While the availability of auto and home coverage is of course essential, affordability is critical as well. Group auto and home benefits provide special pricing through group and payroll deduction discounts, as well as product bundling discounts. It is one of the few employee benefits that can create discretionary income for employees, by helping them save money on a necessary purchase. Comparative, real-time quotes from multiple providers allow employees to quickly and easily market check to ensure they’re not missing out on potentially better rates.  Consolidated quotes prioritize the employee experience and help address a variety of needs, such as multiple properties or vehicles, additional personal liability, etc.

However, it’s important to note that not every employee will be able to find a better deal than their current coverage, as individual circumstances, such as personal risk profiles and claims history, can significantly influence available options. In addition, availability isn’t guaranteed, and some providers may have restrictions that limit access to certain types of coverage. Employers should also be aware that all group home and auto programs are not alike: what separates the best solutions from lesser ones includes the comprehensiveness of coverage, customer service quality, and claims processing efficiency. Finally, no matter what solution you choose, today’s market can still be challenging, underscoring the importance of employees being informed and proactive in their insurance decisions.

All that said, giving people this easy first step to take — which could take as little as 10 minutes of their time – could go far. While results vary, about half the employees who request a quote from Mercer's auto/home CHOICE program wind up purchasing coverage.

Building resilience for the future

As we navigate an increasingly unpredictable property and casualty landscape, now is the time for employers to engage and explore group auto and home benefits. By doing so, they not only safeguard their employees' financial well-being but also foster a culture of resilience and support.