Why worksite marketing and why now? Translating the successes from the USA to the UK

Abstract

Worksite marketing is a term used to describe the distribution of financial services to employees via their employer. Employers facilitate access to the workforce, often via employee benefit advisers, with providers marketing voluntary (employee-funded) products and services. In the USA, payment is typically made by payroll deduction. Sales of healthcare and life assurance have grown rapidly in America in recent years, whilst in the UK, pension reform and retirement planning are forecast to make the worksite a focus for distribution in the future. Whilst there are obvious differences between the US and UK markets, especially in terms of scale, this article argues that the attractions of worksite marketing and this convergence trend can also be found in the UK. The UK market could evolve rapidly given the context of regulatory change and may outpace the USA. Traditional life and pension companies will come under threat from bancassurers and fund managers. Success in worksite marketing will require providers to overcome internal organisational design issues, implement new operating models and ensure that they have a detailed understanding of the business drivers and their impact on financial performance. [ABSTRACT FROM AUTHOR]