Also in this issue:
Employees React to Economic Downturn
Summer Quiz
Update on Eastbridge Consulting Statistics
Spring Quiz Answer
PASS Provides Important Feedback
Eastbridge Recognizes CIGNA and Wellpoint as the 2010 Voluntary Sales Growth Leaders
The Spin
The Two Enemies of Success
Eastbridge Frontline Report Gives Insights into Executive Viewpoints on Voluntarys
The Country’s Largest Brokers are Becoming More Active in Voluntary
It’s Been a Busy Year
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The Country’s Largest Brokers are Becoming More Active in Voluntary
Since 2005, Eastbridge has partnered with the Council of Insurance Agents & Brokers (CIAB) to study its member population and better understand the role worksite marketing plays for this group, especially as compared to the “traditional” Employee Benefit Broker segment. Members of The Council of Insurance Agents & Brokers include the largest P&C firms that have benefit agencies and some benefit-only agencies. Results from the most recent study show that Members are gaining experience with voluntary benefits and no longer consider themselves, for the most part, “Occasional” worksite producers. Rather, many Members are now what Eastbridge terms a “Cross Seller” whereby they use payroll deduction as a cross-selling tool in select, existing accounts. Much of this movement has been accelerated by the Members’ need to find ways to replace revenues they anticipate losing due to health care reform.
As this evolution continues, Members will become more critical in their carrier selection. First, they want more of a relationship with their carrier reps. Although members still consider product quality as their number one reason for selecting a carrier, they also place a high value on the relationship they have with the carrier’s sales rep. This latter reason (the relationship) is a new addition to the possible answers this year and it replaced the carrier’s ability to handle the entire case as the number two reason. This suggests that the Members may be getting more comfortable with voluntary and no longer need this full service support for all accounts. Members also want more assurances regarding administrative and billing capabilities in order to successfully sell voluntary products. They want to know that their clients will not be burdened with the addition of voluntary products to their benefits package. The Members also mentioned that they need more training in cross selling voluntary to their existing clients and more knowledge about voluntary products in general.
Still, while Members are becoming more interested in voluntary—and better educated on the market and its products—most leadership within these agencies don’t seem to see voluntary as a key strategic business line within the benefits operation. This, in a sense, may limit some of the forward momentum of the Members themselves. Until there’s more buy in from management, the firms won’t be maximizing their potential in voluntary and perhaps may even jeopardize the rest of their benefits business since more and more benefits these days are becoming voluntary.
This is the fourth bi-annual survey conducted with members of the Council of Insurance Agents & Brokers (CIAB). This study focuses on the current voluntary experiences, results, processes, and opinions of Member firms; our prior surveys were conducted in 2005, 2007, and 2009. A Spotlight Report based on the findings of this study and subsequent qualitative interviews will be released later this summer to our Information Partners and for sale to other companies.
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