The most successful employee benefits brokers know that change is their friend. Rather than wrapping themselves in a cocoon of familiarity, they must embrace marketplace shifts, be willing to step out of their comfort zone, and take on a bigger role as an expert adviser making trustworthy recommendations.
By now, most insurance brokers know that voluntary benefits are a mandatory addition to their portfolios. In a voluntary benefits survey commissioned by global insurance broker Willis Towers Watson, more than two-thirds of employers believe voluntary benefits will be an important part of their strategy over the next three to five years.
But what many brokers might not realize is how crucial working with the right carrier partner can be for long-term success.
What to look for in a carrier partner
There are a few points brokers should consider when looking to integrate a carrier’s products into their offering. Choosing the right ally will result in a more satisfied employer client willing to stick around for the long haul.
Here’s what to think about in evaluating a carrier partner:
- The administration process: Seek out partners who are agile and adept at making policy changes, consolidating billing, pulling records and who are actively involved.
- Ease of enrollment: Be sure the carrier partner has a wide array of communication tools available for conveying information to all employers and their employees. These tools should include group and individual meetings, printed handouts, emails, telephone calls, videos and text messages. More than nine out of 10 brokers say ease of enrollment is important when evaluating carrier partners, according to ALM’s Voluntary Benefits Survey.
- Support provided: Follow-up is just as important as the sale. Providing easy account maintenance, re-enrollment guidance, coverage changes or other new information will go far in developing a long-term client relationship.
- Value-added services: The partner must be willing and able to offer customizable options, marketing and sales support, and tools to help clients understand and appreciate the need for voluntary benefits.
- Reputation in the marketplace: A carrier partner must be able to deliver on promises and have a track record, reputation and willingness to innovate that inspires confidence. They also must be up to speed on current rules and regulations.
- Revenue/commission structure: Ideal carrier partners must be clear about financials and how revenues, commissions, fees and incentives are structured and how policies will pay out in the future.
To succeed at the highest level, brokers must partner with a reliable carrier that offers voluntary benefits in a sector seeing increased demand. Identity theft protection is one benefit in high demand, with 63 percent of employers expected to offer it by 2021, according to Willis Towers Watson.
Only by aligning with a reliable carrier partner can a broker maximize the potential of offering voluntary coverage. Ultimatey, the broker, the carrier partner, the employer client and the employee all will benefit.
For more tips on selecting the right voluntary benefits carrier partner, download this white paper.
