Platform providers are becoming more prevalent and important to thevoluntary ecosystem, and it's important that producers understandhow the services may impact the broker-employer relationship.(Image: Shutterstock)

Technology is becoming more critical each day to a broker'ssuccess in voluntary benefits. One technology trend that producersmust navigate is the prevalence and growth of “platforms.”

This catch-all term has become synonymous with enrollment systems, exchanges, benefitadministration, and consolidated billing systems. Even some payrollprocessors are developing tools in this category, extending theirportfolio of employer services. These platform providers arebecoming more prevalent and important to the voluntary ecosystem,so it's important that producers understand how the services thatthese companies offer to employers, as well as how they approachthem, may impact the broker-employer relationship.

Related: Merging of payroll and benefit platforms createsnew challenges, opportunities

A recent Eastbridge report, “Enrollment & BenefitAdministration Platform Providers,” found that the most commonemployer services offered by these companies are HRIS, humancapital management and resource planning capabilities. When itcomes to benefit enrollment and administration support, nearly allproviders offer employer-funded group, voluntary andnon-traditional products, and many cite HSA, FSA, COBRA and definedcontribution capabilities.

Bonnie Brazzell and Nick Rockwell,Eastbridge Consulting Group, Inc.

Producers need to be aware of how such extensive technologyofferings allow these providers to become entrenched with theiremployer clients. This entrenchment may allow the platformproviders to gain considerable control in their relationships withemployers.

Recent Eastbridge employer research suggests that employers ofall sizes are becoming more demanding and technology aware, andit's not just large groups. Even the smallest size employers saidthey are only open to working with carriers that offer onlineadministration.

The growing breadth of platform provider services raises thequestion of whether these companies are positioning themselvespurely as service providers, or perhaps something more. In manyinstances, providers may be looking to establish one-to-onerelationships with the employer, positioning themselves as atechnology advisor or partner, rather than purely as a vendor.

The same Eastbridge report found that while almost all systemproviders cited brokers/consultants as distribution partners,nearly half of the providers also cited direct-to-employerdistribution. This direct relationship may impact your role if youdon't have a voice in the benefits technology conversation. Forexample, think of who your preferred carriers and platforms aretoday. Platform providers often have a group of “preferred” productmanufacturers already established. This group of offeringsrepresent a de facto recommendation from the platform and mayreduce your ability to advise on product selection and whichproviders can be recommended.

The future success of your voluntary business may rest onbecoming more knowledgeable about the trends in platform providerservice offerings and market approach, as well as determiningstrategies that ensure your seat at the table in techconversations. The increased use of technology is quickly becominga battleground in voluntary benefits.

Read more:

• Benefits administration platform vendors: Whatbrokers should consider
• Hot voluntary products andplatforms
• How technology is transforming the voluntarybenefits industry