The economic downturn of the past year has already had a considerable effect on the employee benefits industry. No one knows exactly how significant and long-lasting the impact of the recent economic downturn will be on plan sponsor organizations, benefits brokerage and consulting firms, insurance carriers, and legal/regulatory entities. Benefits brokers and consultants can play a critical role in helping plan sponsors develop comprehensive benefits strategies that meet their companies' needs?maintaining a reasonably competitive benefits program while identifying opportunities for greater efficiency and cost savings.
planning on using a broker?
|
PLAN SPONSORS' CURRENT AND FUTURE USE OF BENEFIT BROKERS BY EMPLOYER SIZE |
Number of employees | |||||
|
All |
50-99 |
100-499 |
500-999 |
1,000-4,999 |
5,000+ | |
|
Currently use a broker/consultant |
83% |
82% |
88% |
84% |
78% |
74% |
|
Use of broker/consultant will increase in the next five years |
17% |
15% |
18% |
19% |
15% |
18% |
|
Use of broker/consultant will stay the same in the next five years |
64% |
68% |
67% |
66% |
54% |
54% |
|
Use of broker/consultant will decrease in the next five years |
8% |
6% |
6% |
10% |
15% |
14% |
|
Don't know how use of broker/consultant will change |
11% |
11% |
9% |
5% |
16% |
14% |
8 in 10 plan sponsors say they use a broker for assistance with their employee benefits programs
11% of the 17% who do not currently use a broker expect to begin working with an intermediary in the next five years
