What's hot in the benefits industry? Voluntary benefits.

But we probably didn't need to tell you that. Well, some of you.

Of the brokers polled in the fall of 2015, 32 percent said they actively sell voluntary benefits, up from 19 percent the previous year.

Of course, that leaves a full 68 percent not selling products that can add to their product portfolio, client satisfaction, and bottom line.

Why is that?

We asked some experts to share with us 10 potential challenges for brokers. But more importantly, they also offer practical solutions.

Here are the 10 challenges and solutions.

1. Broker understanding

It sounds basic, but it is extremely difficult for brokers to sell products they don't fully understand.

“It is vital for brokers to be educated in the voluntary space,” says Chris Stroud, director of business development for Voluntary Benefit Partners LLC and managing director of The Zorn Group in Fairfield, New Jersey, “If they do not have that knowledge, partner with a voluntary expert and strategize with them to deliver the optimal benefit package for the client. Our advisors work with employers and insurance professionals to deliver goal-oriented benefit solutions to the workplace.”

2. Marketplace understanding

Never assume that business clients and their employees understand voluntary products and how they fit with their current insurance offerings.

“Voluntary solutions are ideal for helping customers control out-of-pocket costs and delivering financial protection,” says Paul Goedde, executive vice president of the Voluntary Employee Benefits Board and product management lead for Cigna in Philadelphia.

“When associated with high-deductible health plans, they help cover costs that are not traditionally covered by a medical plan,” he says. “As more employers transition to these types of benefits to save costs, employees may find financial protection products more appealing. Customers are more likely to choose a voluntary solution if they understand what it is and how it works.”

3. Employer engagement

How can brokers encourage employers to present voluntary benefits to their workforce?

Stroud recommends helping employers understand what's in it for them: “We need to engage the client in a line of questioning, such as, ‘How do these voluntary programs integrate with my in-force medical offering? How can I integrate voluntary, reduce costs, and help offset future risks?’

“We sit with every client to evaluate fulfillment processes that align to their needs and goals. The broker has to have a wide range of knowledge to fully understand how to complement the benefit portfolio through voluntary integration.”

A problem-solution approach may work best, says Marc Warrington, head of field sales for Sun Life Financial U.S. in Wellesley Hills, Massachussetts.

“When you think about voluntary benefits, don't define it as a set of products,” he said “Think of it as a funding concept – it's the choice employees make about whether or not to take extra money out of their paycheck to give them the protection they need.”

4. Employee awareness and education

A common challenge is educating employees and getting their buy-in.

“A well-planned enrollment communication strategy reaches employees in many ways, including face-to-face, email, and print,” Goedde says. “The most value is delivered when carriers have the ability to communicate directly with employees, driving better employee experience, participation, and satisfaction.”

Employees may prefer to receive information and educate themselves in different ways.

“Offer employees a variety of ways to provide information and to enroll,” says Cheryl Fugate, assistant director of voluntary business solutions for The Hartford, Commercial Markets. “If you have marketing materials, provide collateral to the employer and post it online. If you’ve created enrollment materials, provide paper to employers and post on the enrollment platform to print. Provide online access to the call center to assist employees with completing the online application.”

Education may be the most important link in the sales process and is “key to a successful worksite enrollment,” says Stroud. “It's vital for policyholders to be educated on how programs work in conjunction with other benefits.”

He says brokers are the experts, and their responsibility is to teach employers and employees how to make proper decisions. “Most employees need more education on not only voluntary, but all benefits.”

5. Carrier participation

Brokers are the carrier's face to the public, and should expect substantial support in return.

“Work with carriers that are true partners,” Warrington says. “The right carrier will provide education to deepen your knowledge and help demonstrate why voluntary benefits are essential components to clients’ benefits plans. They also provide enrollment support and ongoing communication to help generate more return on the voluntary benefits investment.”

“Brokers should help customers allow carriers to present their best option for successful enrollment,” agrees Fugate. “Carriers know how to boost premium and participation, and have marketing teams that provide research. Brokers should help employers avoid making decisions that can prohibit increases to premium and participation.”

Goedde says a team approach is best. The broker, employer, and carrier should meet to understand the employer's current overall benefits strategy, including their goals, needs, or gaps. “Voluntary solutions can complement the health care strategy, so looking at the entire package enables the broker and carrier to make customized recommendations.”

6. Insurance intimidation

Even seemingly simple concepts may be difficult for customers who only deal with enrollment once a year.

“When I think about some of the biggest challenges in the sales process, the intimidation of insurance jargon and the different interpretations of what ‘voluntary benefits’ mean are at the top of the list,” Warrington said. “And, for producers who mostly grew up on medical plan revenue, there can still be a misperception that voluntary benefits revenue is not significant.”

In short, cut the jargon and simplify the concepts.

“Foster environments where people can interact with someone who makes it easy to understand how the benefits work in their real world, not in terms of deductibles, premiums, and generalities,” he says. “Emphasize to employers that a focus on meaningful benefits communication needs to go along with the products.”

7. Enrollment hassles

Selling voluntary benefits is one thing; getting employees to go through a sometimes daunting enrollment process is another.

“There is no one-size-fits-all enrollment method and communication channel,” Stroud says. “You have to be well versed in your enrollment methods. The most successful educational process typically centers on human contact.

“That being said, we understand face-to-face enrollment and education are not always a preferred strategy for all businesses; therefore, never rule out multiple communication options such as call centers and the use of technological benefit platforms.”

The broker's job is to make the process as painless as possible.

“The blueprint should be flexible to maximize the educational experience for employees, while reducing time constraints to the companies’ daily operations,” he says. ”The process should be established during a strategy meeting with the employer.”

8. Product integration

Employees accustomed to employer-provided coverage with limited options may find integrating voluntary benefits into their overall package puzzling.

“One of the biggest issues facing the voluntary market is proper plan integration,” Stroud says. “Most people are not educated on how to properly offset risks by coupling the correct voluntary programs with core medical and ancillary.

“It's our job to guide the employer to make proper plan integrations by offering programs that deliver desired solutions to clients. It's important to holistically evaluate the carrier and plan design to elicit the most value.”

“Understanding how all of the different solutions work together and can satisfy an employee's need for financial protection is critical,” Goedde says, “especially when paired with a high-deductible health plan. Not only does it help the employer attract and retain talent, it helps them manage their bottom line.”

9. HSA implications

Brokers still wrestling with health savings accounts (HSA) can only imagine the confusion of consumers trying to determine how they mesh with voluntary benefits.

“When offering certain benefits such as hospital indemnity coverage alongside an HSA, it's important to understand the difference between compatible and non-compatible plans,” Goedde says. “If the HSA is found to be non-compatible, this can jeopardize the tax-favored status of the employee's account.

“There are quite a few plans out there that are not compatible with those savings vehicles, but are being offered alongside them.”

10. Changing market

Keeping up with changes in the voluntary market can leave a broker breathless.

“It is important for brokers to evolve,” Goedde says. “As industry experts, we have to be educated on the ever-evolving technological side of the business, as well as heighten our strategies to reduce risk to the employer and employee.”

“There are groups of benefit administration platforms coming into the market that are impacting both the insurance and payroll communities,” Warrington says. “Brokers need to sort through all of this and ensure they have a good solution and a solid plan to support it.”

The bottom line response to these challenges is to rely on the same commitment and common sense that has worked with other insurance products.

“Understanding the needs of an employer based on their unique population enables the broker and carrier to do what they do best: Consult and make customized recommendations,” Goedde says. “Brokers who take a consultative approach and commit to engaging employees deliver the value employers expect from a trusted partner.”

Instant Insights /

Voluntary benefits: 10 obstacles and how to beat them

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