A lot is changing in group insurance. To stay ahead of the game, you need a plan – shaped by quality insights from your own experiences, as well as from knowledgeable sources in your circle.
So what does a good plan to achieve success in the group insurance marketplace look like? As you work on what you want to accomplish in 2020, try to include the following goals:
1. Strengthen client relationships
According to recent research from Accenture,(Brokering Small and Medium Business Sales Growth, April 25, 2018) employers tend to have much better relationships with their brokers than insurance carriers. It makes sense on a human level: employers usually know their broker’s face and name. More importantly, companies see brokers as a source of support, helping them get better pricing and products while providing valuable administrative support for renewal, enrollment, education, billing, compliance, and claims.
Brokers who embrace this support role – and do so cost-effectively – can thrive. However, brokers who neglect their support role to focus single-mindedly on price could be susceptible to competitive threats.
2. Diversify your product mix
The workplace benefits landscape is changing, so you may want to change your product mix by offering more ancillary benefits that leverage your experience and provide better client strategies. For example, one way to minimize employers’ concerns about higher health care cost sharing is by offering optional affordable critical illness or accident insurance coverage. Brokers who anticipate gaps and offer cost-effective strategies can be an asset that employers will want to keep.
3. Unlock benefits technology opportunities
Guardian's research on the digitalization of employee benefits delivery found that two of every three employers are digitally managing their benefits. We’ve heard brokers express concerns that new technology will diminish their value to clients. But clients still need the independent, personalized service brokers provide – especially when it comes to making the most of emerging benefits technologies.
Keep in mind that the industry is still evolving at a rapid pace. New technologies like blockchain, artificial intelligence and machine learning are continually re-shaping the insurance and benefits world. We’ll help you serve as a touchpoint for clients, so they can cut through the noise and find the appropriate strategies.
4. Maintain revenue growth
The Society for Human Resource Management (SHRM) reports that health insurance costs for large companies will approach $15,000 per employee in 2019, with employers picking up the majority of that cost. C-level executives have a fiduciary obligation to reexamine their benefit spend. Retirement, life, disability and other workplace insurance benefit plans may be scrutinized – along with commission costs. At the same time, as digital technologies streamline processes there could be downward pressure on commissions: Accenture’s 2018 broker study estimated that broker revenues could decrease by up to 20% as a result.
We can help identify strategies for providing more value to clients while growing your revenue.
5. Put people first while upholding financial obligations
Despite the cost of providing benefits, they are one of the most important tools employers have to help keep employees satisfied – and maintain operational continuity in a tight labor market. Guardian will continue to provide you with resources that help employers better understand the real value benefits can provide to a business by helping to increase employee retention and productivity.
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Our goal is to help your professional career thrive with exclusive insights and information that helps you remain a trusted strategic advisor your clients can rely on. To learn more about Guardian, visit guardianlife.com/brokers or contact one of our sales representatives.