As the employee benefits market grows even more commoditized,brokers are constantly looking for ways to differentiate. One ofthe best ways a broker can stand out from the crowd and buildlong-lasting client relationships is to become an advisor orpartner in the employer's business.
One important aspect to becoming a trusted advisor is helpingclients create a big-picture employee benefits strategy which willattract and retain top talent. I know many, if not most, brokersalready suggest ancillary coverages to clients. The problem, as weknow, is that many employers ignore that advice. In this article,I'll lay out some undeniable statistics about the ancillarybenefits market you should be sharing with your clients, as well aslay out a strategy for more effectively selling ancillary.
Employers are falling short
A telling MetLife study looks at ancillary from the point ofview of broker, employer and employee. This is where the disconnectlies. Brokers are recommending ancillary benefits, and employeesfeel many ancillary coverages are “must-haves”—but employers aren'tdelivering.
Here are a few examples from the study:
Dental: 98 percent of brokers recommend it, 89 percent ofemployees consider it a must-have, but only 81 percent of employersoffer dental coverage. Though that employer percentage is high,companies still need to do better here.
Accident: 47 percent of brokers recommend it, 44 percent ofemployees consider it a must-have, but only 25 percent of employersoffer accident insurance coverage. This gap is concerning; almosthalf of employees feel this option is essential to offer, but only25 percent of employers do so.
Prescription drugs: 93 percent of brokers recommend it, 71percent of employees consider it a must-have, but only 54 percentof employers offer prescription drug coverage. This is anotherstartling divide.
Why the disconnect? Employers are focused on managing benefitscosts as health care costs continue to rise, so expanding theirbenefits package isn't their first priority. Brokers need to remindclients of the employee demand, and emphasize that not offering acomprehensive benefits package can actually cost them money inturnover and lost productivity.
Actions are louder than words
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