If you happen to be a tugboat captain looking for a long-term disability policy, Trent Bryson's your man. Bryson, president of Bryson Financial Group in Long Beach, Calif., is finding success in the specialty benefits market.
"We're able to offer a serious disability policy for people who would otherwise have trouble getting one, like crane and boat operators," he says. "We also heavily market ourselves to professional organizations to get their endorsements. We recently got the endorsement of the California Bar Association."
Because of the increasingly technical -- and obscure -- industries benefit brokers such as Bryson target, many find it pays to work with someone who's better versed in particular areas of the voluntary market. To be comprehensive in today's over-crowded and service-oriented climate, many feel they have no other choice.
"Health and welfare are my core areas of expertise, but I have to be able to offer comprehensive benefits," says Kelly Moore, CEBS, president of Irvine, Calif.-based Moore Benefits Inc. "So I team with financial advisors that have the retirement planning expertise, and I let them handle that part of the business."
The high level of networking interest -- from both within and outside the benefit brokerage business -- has led industry organizations to formally reach out to other professionals from different, yet complementary, disciplines.
For example, because of the growing chemistry between benefit brokers and financial advisors, the Certified Employee Benefit Specialist program developed a relationship with the Denver-based Certified Financial Planner Board of Standards, and both are actively marketing to each other's members.
Additionally, after obtaining the CEBS, brokers can now take two more courses on basic financial planning and hallenge the CFP exam.
"We go to a number of insurance gatherings throughout the year, such as the Million Dollar Round Table," says Dan Graham, senior director with CEBS, which is sponsored by Brookfield, Wis.-based International Foundation. "We also recently started going to financial shows, like the Financial Planning Association's annual conference."
Both the CEBS, which is aligned with the Wharton School at the University of Pennsylvania, and the CFP Board of Standards point to their high academic standards and strict oversight requirements as proof of the quality of their membership.
"We're accredited through the National Commission for Certifying Agencies," says Anne Kern, director of professional alliances with the CFP Board. "They require comprehensive documentation and paperwork to be filed on our members on a routine basis. Our code of ethics and educational requirements are clear in terms of what our members can and can't do. And our board of governors meets regularly to make sure our curriculum and requirements track with the industry."
A major challenge to successful partnering, according to Bryson, is finding someone who shares the same business philosophies and level of ethical standards. He's particularly wary of firms that use commission-based enrollment specialists. Because of the way they're compensated, the enrollment specialists might be tempted to push inappropriate products on trusting clients.
"Section 125 should be a primary benefit that's offered, but it's not because there aren't enough dollars to make it worthwhile for the enroller," he explains. "We don't operate that way, and we don't want to partner with people that are slick up front and then disappear, or worry about the dollars first and their clients second."
For her part, Moore has found success by reaching out to Certified Public Accountants; first to get their own business and second for what she calls the "flow-through effect."
"I target CPA firms that will personally use my services," she says. "From there I partner with them so they'll recommend me to their clients. It's a great referral system."
Once a workable partnership is established, what are the more popular voluntary benefits that employers and employees are asking for?
Somewhat surprisingly, both Moore and Bryson report an up tick in interest in long term care products. Despite market penetration that falls well short of its potential (hovering around 30 percent), the public finally might be starting to get the message.
A number of large carriers solicited Moore to sell voluntary pre-paid legal services and identity theft protection. Although employees seem interested in educational meetings, she's found they rarely end up buying these types of products, and are more focused on supplemental life and disability products.
"I also work with a high number of manufacturing businesses, so believe it or not cancer insurance is currently generating a lot of interest," she says. "If one person at the business comes down with something, then the participation rate skyrockets at the next enrollment meeting; from 10 percent to 30 percent and sometimes 50 percent."
"I'm seeing an increase in interest in pre-paid legal and identity theft protection," Bryson agrees. "But I think this is more a function of the amount of money that is currently being thrown at them from an advertising and promotional standpoint. It's now really all about disability insurance. As little as two years ago we never really dealt with disability, now it's all I talk about."
For diligent brokers looking to sharpen their competitive edge, partnering with peers allows for broader product and service offerings and the chance to form synergistic bonds to increase and retain business. Regardless of the specific product, it can be a win-win situation for everyone involved.
From the February 2006 issue of Benefits Selling Magazine • Subscribe!
