PW: What has helped shape your mindset as a broker?

Change. The vision you have going into a business changes over time.

The overall mindset has been to be something and somebody different in this industry. We were able to trademark our slogan, “Intentionally Different,” several years ago. We have a strategic development meeting that takes place every December where we take a close look at the industry and say, “What is it that goes against the grain? What does ‘intentionally different’ look like?” That's a healthy conversation to have.

PW: How can the industry convince young people that benefits is a career worth pursuing?

When we recruit people, we talk about the ways the industry is changing, the uncertainty that's occurring, and the fact that it needs some new talent. The appetite is so high for fresh talent and new faces.

I think the industry is already doing what it needs to in order to push some of the “old school” mentality out. It's still a capitalistic market, so it's working itself out; it hasn't really redefined itself yet. I think the best is yet to come.

If you look at the last 17 years, there's been a huge change in the market. Benefits has really been a laggard; I think we’re getting ready to go through some expedited change. We’ll probably take 17 years and put it into the next 18 months. In 18 months, I think benefits will be something different. That's pretty exciting.

PW: What are the biggest challenges you face?

I think we’re in a massive talent war. There are certain pockets of the country that are probably a little healthier than others, but I think there's only so many people who have the stamina to get through the next three to five years, because of all the changes. It takes some special people to push through the next wave of what employee benefit planning and consulting is going to look like. I think we’re all going to be fighting over those people to help us.

PW: You mentioned big upcoming changes. Pull out your crystal ball and predict how the landscape will look in the future.

You’re going to see more third parties enter the insurance world. We just saw what CVS and Aetna did. I think that transaction will go through and others will follow. People will say, “How can I capture the most data and the most people through my system?” Some are going to figure out that by buying an insurance carrier or becoming an insurance carrier, you can increase volume 100 times. I think there will be more of that. I don't think we’ll see carrier consolidation as much as carrier acquisitions.

The second piece is this whole movement toward transparency and reference-based pricing. That will continue to get momentum; I don't think it's where it needs to be yet, but it's on its way and will definitely get there.

My other prediction is that there will be less regulation. The pendulum swung pretty far with ACA and I think it’ll swing back to the middle, hopefully giving some relief to employers in regard to reporting.

PW: There's also a lot of M&A activity taking place on the brokerage level. Will it continue? Will there be a space for smaller brokers?

I think we’re getting close to saturation. The folks who were desirable and who wanted to sell have mostly already done so. The folks who need to sell are probably either going to be looking at that over the next 18 months or don't realize it and will have a tough time competing. There is a size that's just too small to have meaningful participation in this business today.

I don't think there's going to be a bunch of startup brokers in the next five years, and that wasn't true 15 years ago. The distribution model has changed and will continue to change.

The carriers ultimately have the ability to choose who they want to distribute their products, and if they want to change their model to make it easier on them, then I believe they will. And to some extent, they have to; the cost of doing business with someone who doesn't have enough internal resources is too high and the carriers realize that.

I think there's a sweet spot, and I feel very fortunate that we’re in that spot. I don't think we’re too big where we have to report to the publicly traded entities and maintain high profit margins, and we’re not too small, where we’re worried about carrier contracts.

PW: What does a brokerage in that sweet spot have that a smaller one might not?

Well, technology first and foremost. We have folks internally who are dedicated to technology systems. You need people who understand it, who understand integration and cost, because that can be a total time suck. You can spend a lot of time managing technology.

And certainly compliance, whether it be HR or employee benefit compliance. We have kind of a hybrid of in-house and outsourced compliance that we feel really good about. Compliance is all about building process, and if you have a good internal process, you can manage it well.

Another area we intentionally went after and built over the last few years is enrollment support. If you don't have people dedicated to managing open enrollment, especially during the heavy volume quarters, it can just bury you. If you have a process around it, you’re less likely to make mistakes.

PW: With the trend toward bigger brokerages, is there a risk of losing the human element?

There's a way to provide first-class service to groups and give them personalized services delivered differently than we used to. Who would have thought that a book retailer could compete with and in some cases overtake Walmart?

I think the trend globally, and especially among the younger generations, is a preference to have access very quickly, as opposed to a personal relationship.

Having said that, this is still an industry that needs a lot of explanation and education, and the personal component still very much exists. Finding the balance between these two will be key. As they streamline benefits and make it easier for people to understand, the personalized services won't be as desired as they once were. That's just the way things are going globally. However, we have done a great job marrying technology with personalized services and it will be interesting to see where demand asks us to pivot.

PW: How can you keep up to date without becoming distracted by all the noise?

You’re going to make mistakes, because you have to take chances. You have to be willing to take risks, but then recognize a bad investment and be willing to move on quickly.

PW: What's one thing you wish you’d known earlier in your career?

If I were talking to my younger self, I’d say, “Stay very focused and manage your minutes, not your weeks. Stay diligent with the time you have. Be patient.” I tell salespeople all the time: if you wake up focused and do all the things we’re supposed to on a daily basis, and give that amount of focus to activity, then success will eventually follow.

PW: What advice would you give to someone interested in joining the industry?

During the first few years, expect to work harder than you might have anticipated. Most people give up too easy, but it's one of the few industries left where if you work hard, then the work compounds. The hard work you put in during year one has the potential to pay off 10 years down the road and beyond.

PW: Finish this sentence: The key to success in this industry going forward is…

Resilience.