Right now, there are approximately 28 million small businessesoperating in the U.S., according to the U.S. Small BusinessAdministration. These are businesses that each have fewer than 100employees, and at some point, nearly all will face the challenge ofbringing affordable benefits to their workforce.

Balancing benefit cost and value is a dilemma that has smallbusiness owners seeking information and guidance. For brokerssearching for growth opportunities, this market can be lucrativeand rewarding. It also presents a great opportunity to build loyaland long-lasting relationships in an underserved market. But inorder to do so, brokers must understand the challenges that drivethe decisions of small business owners.

Employer challenges

When it comes to benefits, small businesses share some commonpain points, such as:

• Employee recruiting and retention challenges

• Offering affordable yet attractive benefits

• Finding the time to shop for benefits

In fact, the 14^th annual MetLife Employee BenefitTrends Study confirmed that employee retention and costcontrol top the list of small business concerns. While these arenot new concerns, when coupled with the regulatory requirements ofthe Patient Protection and Affordable Care Act, they leave smallbusiness owners looking for expert advice from brokers.

“Small businesses are confused about what their regulatoryresponsibilities are with ACA,” says James Reid EVP, Regional &Small Business Solutions at MetLife. “They need help understandingthose responsibilities and how they can meet them while providingattractive benefits that help them with employee retention.”

At the same time, with the rising cost of health care, employersare shifting more out-of-pocket costs to employees and consideringwhether to reduce or eliminate essential benefits like dental andvision. It's a move that could impact employee retention. Whilemedical benefits are still the most sought after, dental and visionare also on the list of employees' needs, says Reid. With theMetLife study showing 70 percent of employees wanting customizablebenefit options, Reid says that's creating opportunity for brokers.“Small business owners need simple, affordable options that canhelp them attract and retain talent,” says Reid. “Increasingly,they're turning to their brokers to help them explore non-medicaloptions.”

Reid believes the smart broker can become a trusted resource forsmall business owners, helping them understand the regulatorylandscape and recommending options that meet the budgetary needs ofboth employees and employers. “This is the perfect time for brokersto further position themselves as an expert resource,” he adds.

Broker challenges

Despite the opportunity, many brokers have yet to discover asimple way to serve the small business market. One challenge is thelegwork needed to source right-sized benefits. The transactionalnature of the small business market can sometimes make locatingcoverage options or even carriers that are dedicated to the smallbusiness market a time-consuming and challenging process.

In a diverse small business market, brokers who are ableto identify a niche, establish their expertise, and build a set ofsolutions that make adding and administering benefits simpler, gaincredibility. Small business owners who are often protective withtheir time and trust are more open to building a relationship withadvisors who understand their business and take the time to get toknow their short- and long-term challenges.

Broker opportunity

It's within these challenges that brokers can find opportunity.Technology, along with carriers that have committed to the smallbusiness market, are helping brokers optimize their small businessclient relationships and differentiate themselves in the smallbusiness space.

“By providing simple benefit packages that are easy tounderstand, that are improving through technology and automation,and are easy to administer, brokers can help small businesses focuson what matters most to them – growing their businesses,” saysReid.

Carriers dedicated to serving the small business market shouldoffer simple packages that are tailored to employee needs andemployer budgets. Reid says a carrier that builds preset plandesigns helps brokers find and recommend the right-sized optionsfor small business clients. Employers, he says, get affordable,easily managed packages; brokers stand out in an increasinglycrowded market and build a strong book of business in one of thelargest underserved segments in insurance.

Increasingly, small business owners are turning to their brokersfor more than just benefits selection. These employer clientsappreciate expert guidance and as such, are willing to forge arelationship with a small business broker who understands theirchallenges and their business. The small business market, saysReid, offers brokers a wealth of opportunity to create long-lastingrelationships that can foster a growing small business niche forbrokers. “If brokers and carriers work together to make sure thatwe allow small business owners to have more time and use theirmoney wisely, there's no greater value that we can create.”

For more information, please visit http://www.MetLife.com/smallbusiness.

L0816476368[exp1017][All States][DC,PR] © 2016 Metropolitan LifeInsurance Company, New York, NY 10166