While technology has always played an essential role in a benefits solution, that timeline has been accelerated. (Image: Shutterstock)
In an increasingly complicated world, brokers are seeking simple group voluntary benefit solutions for their clients. But what does that simplicity actually look like? Based on a recent study Trustmark conducted with C+R Research that spanned several months and included hundreds of voluntary benefits consultants, there are four key findings for brokers to focus on:
Key finding #1: Keeping the service experience simple for employers
No one wants a benefits program that ends up being more trouble than it's worth. In our study, brokers ranked price as the primary factor when selecting a group voluntary carrier. However, the next two factors they ranked are both service-related: ease of administration and account service and support.
Daniel Schmid is vice president of sales for the Western U.S. with Trustmark Voluntary Benefits. He has more than 35 years of sales experience in the insurance industry. Recommended For You
Related: Voluntary products and processes In fact, 41% of brokers indicated that service-related issues are their top factor for choosing a group voluntary carrier. What are brokers seeking? Technology that integrates easily with employer platforms, for starters. While technology has always played an essential role in a benefits solution, that timeline has been accelerated. Now, eliminating the need for multiple or complex systems is a key driver of purchasing decisions. At Trustmark, we recently selected Vitech's V3locity® as our cloud-based administration to support our entry into the group voluntary benefits market. We believe this will help create a superior group benefits experience for policyholders, as well as brokers and employers. We've also developed an Embedded Application Programming Interface (EAPI) tool, called Simplink, to make our individual products easier to administer than ever. Service isn't just about tools that make life simple. Sometimes it's more straightforward. In the world of voluntary benefits, you can earn quite a bit of goodwill just by being responsive to service requests. Again, it's a simple solution – a phone call back, an email, or an acknowledgment can make all the difference. Brokers want to know that carriers will be there for employers. A positive service experience for employers translates to success for you, too.
Key finding #2: Policyholders want a superior service experience
It's easy to see why a simple service experience for policyholders is critical. Questions about pricing, claims, and administration often route through HR (and, in turn, to you) creating a less than ideal experience.
A carrier needs to make life easy for policyholders. First and foremost, for the policyholder's sake, but also for you and employers who get pulled into the employee's confusion. Based on our survey findings, the keys to creating a superior experience for policyholders include:
- Fast and accurate claims processing
- Reliable, accessible technology for submitting claims (that easily integrates with employer platforms)
- Effective communication before enrollment and during enrollment
There's an overlap between the first two items that can feature prominently in a broker's decision. Part of paying claims quickly and accurately is providing a good customer experience for claim submission and processing, which should include an easy, online process. Importantly, everything on this list comes back to the idea of simplicity. For example, when employees clearly understand benefit offerings, it makes it easier to enroll. So, carriers that make life easy on them upfront with communication stand out.
Key finding #3: In-person enrollment still preferred
It comes as no surprise to brokers that the COVID-19 pandemic disrupted what we've come to accept as standard in terms of enrollment. And it was certainly different for employers and employees, too. As with other areas discussed here, the trend is toward ease of doing business and making life simpler for employees and employers. Although virtual enrollment is on the rise, brokers still prefer an in-person enrollment for voluntary group enrollment. In fact, 56 percent of brokers indicated a preference for more direct contact through tactics like group meetings, HR-assisted enrollment, or enrollment firm-assisted enrollment. At first glance, it may seem that coordinating assistance for employees runs contrary to the simplicity theme. That may be true from a broker or an employer perspective, but that in-person experience often makes life simpler for employees. We found that whether enrollment is virtual or in-person, providing assistance was preferred to having employees go it alone through approaches like online self-service or by relying on a group meeting. An element of personal touch remains preferred by brokers for group voluntary benefits. It's all about finding the right balance between simplicity and personalization.
Key finding #4: Present the right product options to employers
Choosing the right group voluntary products can be a challenge. What fits best with the employer's medical plan? What voluntary products are already offered? How many carriers are they working with? You don't want to confuse employers' processes and you don't want to overwhelm employees with benefits.
Our research looked at two key areas:
- Benefits selection process with the employer
- Bundling vs. selecting best in class
When it comes to the benefit selection process, most employers look to you as the broker to take the lead. Given the number of available benefits and carriers, plus the complexity of putting together a benefits plan, that's not surprising.
We also found that many brokers want to simplify things for their clients even further by bundling the products they offer with a given carrier. Roughly two-of-every-five brokers indicated that they typically prefer to bundle products from a single benefit carrier. On the flip side, nearly one-third of brokers are selecting the best products, regardless of carriers.
In both areas, the predominant trend is making life easy. Certainly, by having you take the lead on selecting benefits but also by either bundling products with one carrier or choosing best-in-class products, regardless of carrier. Likely, this approach relies on that technology piece noted earlier – being able to make the management of benefits (especially with different carriers) simple. Here again, the overall goal is to simplify the employer's process.
Making life easy for your clients
Your success as a broker in the world of voluntary benefit hinges on your ability to make life easy for your clients. From the claims experience to the simple act of being responsive to customer inquiries, it's about making the process of offering, and enrolling in, benefits less work. But simplicity doesn't mean a decline in quality.
The key is finding a balance between simplicity and effectiveness. The carriers who champion simplicity without sacrificing an ounce of quality service will be the most critical players in the market. Savvy brokers who can capture that, translate it, and deliver that experience to their clients are poised to take the lead in building lasting, rewarding relationships with employers.
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