Lincoln Financial Group named Workday Innovation Partner to help bring ease and efficiency to employee benefits

Rhea-AI Summary

Lincoln Financial Group (NYSE: LNC) has been named a Workday Innovation Partner, aiming to enhance benefits administration for joint customers. The partnership integrates Lincoln's LincSmart InsurTech solution with Workday Human Capital Management (HCM), offering features like:

• Real-time absence updates
• Simplified billing
• Enrollment optimization
• Streamlined evidence of insurability process

This collaboration addresses the growing demand for personalized, digital benefits experiences, with 90% of workers valuing such solutions. The partnership aligns with employer expectations, as 90% plan to increase or maintain reliance on third-party benefits technology in the next five years.

Positive

• Partnership with Workday expands Lincoln Financial's market reach
• Integration of LincSmart with Workday HCM enhances benefits administration efficiency
• Automated workflows reduce administrative burden for employers
• Alignment with market demand for digital benefits solutions

Negative

• None.

Insights

Financial Analyst

Lincoln Financial Group's partnership with Workday as an Innovation Partner is a strategically positive move, though its immediate financial impact may be This collaboration aligns with the growing demand for integrated HR and benefits solutions, potentially expanding Lincoln's market reach and enhancing its competitive position in the InsurTech space.

The partnership leverages Lincoln's LincSmart technology, which could lead to increased efficiency and cost savings for joint customers. While this may not directly boost Lincoln's revenue in the short term, it could improve customer retention and acquisition, particularly among larger enterprises using Workday's HCM platform.

Investors should note that 90% of employers expect to increase or maintain their reliance on third-party benefits technology, indicating a growing market opportunity. However, the financial impact will depend on successful integration and adoption rates among joint customers.

Tech Expert

Lincoln Financial's LincSmart integration with Workday's HCM platform represents a significant technological advancement in benefits administration. The real-time data exchange capabilities, automated billing and streamlined evidence of insurability process are notable features that address key pain points in HR technology.

The partnership showcases Lincoln's commitment to digital transformation in the insurance industry. By offering automated workflows and enhanced enrollment experiences, Lincoln is positioning itself at the forefront of InsurTech innovation. This move aligns with the industry trend towards more personalized, digital-first benefits experiences, as evidenced by the 90% of workers who value such approaches.

From a technical perspective, the integration's success will hinge on its ability to seamlessly connect with existing systems and provide a truly frictionless user experience for both employers and employees.

Market Research Analyst

This partnership taps into a growing market demand for integrated HR and benefits solutions. With 90% of workers valuing personalized, digital experiences for benefits selection and usage, Lincoln is well-positioned to capitalize on this trend through its LincSmart technology.

The collaboration with Workday could significantly enhance Lincoln's market positioning, especially considering that nearly 60% of employers select carriers based on their ability to connect with benefits technology platforms. This integration could be a key differentiator for Lincoln in winning and retaining business.

However, the success of this partnership will depend on factors such as user adoption rates, the seamlessness of the integration and the actual efficiency gains realized by customers. Investors should monitor customer feedback and adoption metrics to gauge the long-term impact on Lincoln's market share and revenue growth in the competitive InsurTech landscape.

The partnership will help provide joint Lincoln and Workday customers with increased access to Lincoln’s benefit management solutions

RADNOR, Pa.--(BUSINESS WIRE)-- Lincoln Financial Group (NYSE: LNC) today announced it has been named an Innovation Partner by Workday, Inc. (NASDAQ: WDAY), a leading provider of solutions to help organizations manage their people and money. As a Workday partner, Lincoln will help increase joint customers’ access to seamless benefits administration and customized solutions from Lincoln’s insurance technology (InsurTech) experience, LincSmart. LincSmart helps streamline benefits management experiences for Lincoln’s employer customers, helping customers improve efficiency and accuracy while reducing administrative burden.

Through an integration built by Lincoln, joint Lincoln and Workday customers using Workday Human Capital Management (HCM) can benefit from innovative LincSmart capabilities, such as real-time data exchange, helping them maximize their use of the Workday platform and solutions, and simplify their most time-consuming tasks such as manual absence entry, carrier billing, and data reconciliation.

As a Workday partner, Lincoln’s LincSmart technology helps provide joint customer benefits, including:

• Real-time absence updates: Automate claim and leave status in Workday through a real-time data exchange, including intermittent time tracking.
• Simplified billing: Automate monthly self-billing statements using Workday source election data to calculate premium.
• Enrollment optimization: Enhance the enrollment experience to promote employee engagement by empowering employees with product education on voluntary benefits, such as accident, critical illness and hospital indemnity insurance.
• Evidence of insurability: Streamline the employee experience and limit manual employer tasks through an end-to-end evidence of insurability process.

“Employers want simple, automated workflows, technology solutions, and a true, consultative partner. Our LincSmart InsurTech solution provides all three, and that support gives our employer customers time to focus on what matters most — their employees,” said Jimmy Reid, executive vice president, president of Workplace Solutions, Lincoln Financial Group. “We’re committed to meeting our customers’ comprehensive needs, and we’re proud to offer LincSmart’s capabilities on Workday and partner to help our shared customers adapt and thrive in a changing world. This partnership will help bring these benefits to more of our employer customers while opening doors for our teams to develop new capabilities that deliver an even more seamless customer experience to our joint customers.”

About 90% of workers value a personalized, digital experience as they select and use their benefits, and more than 90% of workers are comfortable with benefits guidance through digital channels, like websites and mobile apps. ^[1] Employers see that value, too, and many are looking for their benefits partners to lead on technology. Nine in 10 employers expect to either increase or continue their current reliance on third-party benefits technology in the next five years.^[2] What’s more, nearly 60% of employers select carriers based on the carriers’ ability to connect with their benefits technology platform. ^[3]

LincSmart seamlessly integrates with employers’ existing systems and offers access to digital solutions that can help enhance and automate day-to-day administrative tasks. Through strategic partnerships, employers have access to solutions that help them save time and optimize the benefits selection process for their employees using on-demand educational resources about the benefits offered.

Workday HCM is a unified system that helps enable organizations to make faster decisions, gain operational visibility, prepare for future talent shifts, and build effective teams. Workday, Inc. is not affiliated with Lincoln Financial Group.

About Lincoln Financial Group

Lincoln Financial Group helps people to plan, protect and retire with confidence. As of December 31, 2023, approximately 17 million customers trust our guidance and solutions across four core businesses – annuities, life insurance, group protection, and retirement plan services. As of June 30, 2024, the company had $311 billion in end-of-period account balances, net of reinsurance. Headquartered in Radnor, Pa., Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.

LCN-6807135-071824

^[1] Harnessing Growth and Seizing Opportunity, 2023 Workforce Benefits Study, LIMRA and EY.

^[2] Harnessing Growth and Seizing Opportunity, 2023 Workforce Benefits Study, LIMRA and EY.

^[3] Harnessing Growth and Seizing Opportunity, 2023 Workforce Benefits Study, LIMRA and EY.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240805125179/en/

Lincoln Financial Group

Julianne Mattera

Julianne.Mattera@lfg.com

267-418-0346

Source: Lincoln Financial Group

FAQ

What is the significance of Lincoln Financial Group's partnership with Workday?

The partnership allows Lincoln Financial Group (LNC) to integrate its LincSmart InsurTech solution with Workday's Human Capital Management platform, providing joint customers with improved access to seamless benefits administration and customized solutions.

How does the Lincoln Financial (LNC) and Workday partnership benefit employers?

Employers benefit from automated workflows, real-time data exchange, simplified billing, enhanced enrollment experiences, and streamlined evidence of insurability processes, reducing administrative burden and improving efficiency.

What percentage of workers value a personalized, digital experience for benefits selection according to Lincoln Financial (LNC)?

According to the press release, about 90% of workers value a personalized, digital experience when selecting and using their benefits.

How many employers plan to increase or maintain their reliance on third-party benefits technology in the next five years?

The press release states that 90% of employers expect to either increase or continue their current reliance on third-party benefits technology in the next five years.