Recently at Eclipse, our first annual benefits and HR conference, I had the pleasure of facilitating a panel that discussed what it takes to be a cutting-edge broker.

I was joined by Ben Milcarek of Regions Insurance and Brad Mandacina from Lockton, two great minds in the insurance industry. We covered a lot of ground, but one of the most interesting points made during the discussion was this: insurance brokers need to stop being brokers and start being consultative partners.

The benefits and HR industry is being rocked by seismic changes brought on by new regulations, advances in technology and the growth of consumerism.

Insurance brokers are in a unique position to help their clients navigate this increasingly complex landscape, reduce employers' overall benefits costs and make an even bigger impact on the lives of employees and their families. But as we talked about the state of the industry, it became clear that in order to succeed, brokers must change their approach. Here are three areas that can transform the role of the broker.

Understand the role technology plays

To be a truly consultative partner, a broker today must understand the benefits (as well as the limits) of technology. In some areas, technology is a must-have.

For example, the panel agreed that automation is essential for complying with the Affordable Care Act. The measurement, tracking and administration of employee data, generation and filing of multiple forms, and other requirements imposed by the ACA is incredibly cumbersome to do manually.

As such, brokers must be knowledgeable of what technologies are available and advise their clients on how to automate these processes.

Taking that idea one step further is the cosourced model, in which the broker takes on the responsibility of implementing, maintaining and servicing software for their clients. This approach is gaining traction in many firms. It does require that a broker have a tech-savvy staff, but it is a great way to build strong connections with clients and provide a more intimate level of service.

Communicate frequently and use all channels at your disposal

As benefits choices become more complex, communication is more important than ever. Many employees are not knowledgeable of benefits plans and insurance terminology and, as a result, are at risk of getting inadequate coverage or buying products they do not need. To rectify this, communication around benefits choices is essential, and brokers can play a big part.

Many brokers offer benefits communication services and some even have in-house creative staff to create co-branded, custom pieces. Our panel unequivocally agreed that when communicating, you have to meet employees where they are. You have to look at the workforce and determine what channels would be best to reach employees.

A growing portion of the population in America is dependent on smartphones for Internet access. This means that communications need to be tailored to be consumed on phones via text messages, apps or mobile-responsive websites. And while electronic channels are an efficient way of communicating, they don’t work for everyone and will often need to be supplemented by paper or other more traditional forms of communication.

Make voluntary benefits as easy as possible, avoiding “benefits fatigue”

Communication is especially relevant for voluntary benefits, such as life insurance, hospital insurance, accidental death and dismemberment, and long-term care insurance.

These types of benefits are usually placed towards the end of an enrollment process, after consumers have already completed the shopping and enrollment process for medical, dental and other plans offered by their employer.

At this stage in the process, many people begin to experience “benefits fatigue” and do not want to spend any more time researching these products.

To combat benefits fatigue, brokers need to make voluntary benefits as easy as possible. They should give employees quick and easy ways to find out how these benefits options work and why they could be valuable. Short, online videos can help accomplish this, but it is also important to consider the work environment and tailor communications to reach as wide of a population as possible.

In addition, voluntary benefits shouldn’t just be placed at the end of the benefits shopping process as an afterthought.

Employees should be guided through the process in an order that makes sense - based upon employee demographics as well as benefits already selected.

For example, accident and critical illness benefits complement High-Deductible Health Plans (HDHPs) because the benefits are paid directly to employees, allowing them to use the money for out-of-pocket and non-medical expenses such as rent, child care and other bills that can accumulate when an employee is not able to work.

These types of benefits should be offered immediately after the employee selects an HDHP, with just the right messaging to explain why the employee should consider purchasing the benefit.

I believe it is fitting to close with one last thing our panel talked about: the fact that there is no silver bullet. Brokers today must use every resource and piece of technology at their disposal if they want to remain relevant in today’s market and become a trusted partner in their clients’ quest for a better benefits experience.

Instant Insights /

From broker to consultative partner: What it takes to be a cutting-edge broker

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