Steve Ginsburg is what you'd call a product manager, an authority on all things medical, long term care, disability, critical illness and accident, to name a few.
Oh, and he works for a division of one of the bigger broker houses. You may have heard of them: Marsh?
But Ginsburg, senior vice president-product management at Marsh U.S. Consumer, insists it will take more than product pushing for brokers to survive what could very well be described as an impending benefits ice age.
"I think you know the broker role has changed; that our clients' needs are changing quickly; that we're all faced with a market changing at light speed," Ginsburg explains. "And we need to reflect on what the goals of the client are and that's really to find innovative product solutions to save money and to manage their cost issues. And to be effective in that role we really need to step back and try to find new ways to address their needs."
And this is from someone touting a degree in actuarial science - not exactly customer service-heavy stuff.
Nevertheless, Ginsburg refused to be pigeonholed, so he spent the next two decades working in nearly every aspect of the insurance business, from roles in management, operations, sales, and dealing with direct insurance products, consulting and reinsurance.
"I've actually worked all aspects of product design, pricing, underwriting, delivery, claims ... My background was very broad," Ginsburg says. "I've held a number of different roles in the industry and I sit today on the board of The Group Underwriters Association of America. I think it's really important for people to get involved in the industry and to try to get to know your peers and to try to build relationships."
Benefits Selling: How do you see health care reform affecting the role of the broker?
Steve Ginsburg: I think the changes with health care are completely changing the market, and they're changing the compensation and the product design. It's making sure we find new ways to address client needs.
Health care reform is undeniably good in that it's creating access for people to health care, but I think as a broker you need to step back and look at ways to help a client manage their cost and access, and to better understand those changes. I think the market doesn't fully understand the extent of those changes at this time.
BS: Do you see brokers being not only more involved but maybe fostering better relationships with carriers as well as their clients? Kind of getting beyond the historically contentious relationship with carriers?
SG: I absolutely do. I think a broker needs to clearly look out for the interests of a client but at the same time, a broker needs to look at the markets and to develop partnerships and to really push the markets to deliver innovative products. I think that the markets can be receptive to those things. And we have to be open to creative ideas to develop that innovation.
BS: What product in particular do you see experiencing some growth or playing a greater role going forward, especially on the voluntary side?
SG: One is long-term care; it's a very important benefit that's certainly getting attention because of the recent legislation.
But overall, I think the primary trend of employers trying to reduce costs for benefits and shifting that cost back to the employees is certainly continuing to drive [products such as] disability, accident and critical illness. And I think part of the trend that's emerging relates to the fact that through medical insurance and high-deductible plans, a lot of cost has been shifted from the employer back to the employee and that the employee has difficulty managing those costs and they're looking for solutions.
BS: Do you see brokers embracing this new role that they're going to have to play or do you see some of them having a harder time adjusting? And if so, what's going to need to happen in order to get them to embrace that all the way?
SG: The critical thing is education -- trying to understand the marketplace that's changing very quickly. That's not an easy thing.
I think that everyone in the marketplace is "scrambling" to understand the changes as they come out -- true clarifications with HHS and what those impacts are, and the various product sets. But the key thing is really education and trying to step back and understand the market so we can help clients navigate the best solutions.
BS: Do you see that employers are actively looking for more guidance as a result of employee demand? Do you see them actually pursuing that?
SG: I believe the employers are looking to the broker to identify solutions for them, either with that product set to match their needs or ways to try to save money. I think there's a very strong demand for that. And I think that the people who demonstrate they have understanding and expertise to consult with clients will be those who are successful.
BS: What would your advice be to someone just getting into the business, someone trying to break into the business, to the young broker?
SG: The most important thing as a broker is to be honest. At the utmost, maintain integrity, try to take time to learn things and deliver the highest quality solutions to the clients. If you don't know the answer to something, just say so. And if you follow those principles, you have a high likelihood of being successful.
BS: What do you really enjoy the most out of all your roles?
SG: I really love my role now, in that it allows me to apply what I would consider my technical insurance understanding. To be very creative and to be client-facing. And to try to really engage with clients and bring them solutions that truly bring them value. And I really love working with carriers to find a way to bring that unique solution for each customer.
BS: Do you see the carriers also trying a little harder to work with the brokers themselves?
SG: My experience is that most carriers today work with [a broker] when they feel that they have a good distribution relationship in terms of the quality of business that a broker brings.
But the marketplace is certainly challenging carriers to rethink whether or not their businesses need to change in the future. And I think that some carriers and some product clients will definitely not be the same given the recent changes with health reform, and brokers are looking to the carriers to try to help each other identify what those products are going to look like and what solutions are going to look like in the future marketplace.
