Insurance brokers understand the need for a strong benefits package, but many employers today are falling short of employee demands. Our last blog looked at employee demand (and financial need) for ancillary benefits.
In this blog, we’ll discuss the significant disconnect that exists today in the ancillary benefits market—and how you can use those insights to increase insurance sales.
The ancillary benefits disconnect
There is a disconnect in the ancillary benefits market. Many employers aren’t offering ancillary benefits, despite broker recommendations and employee demand. The below chart illustrates this finding.
Use these insights to increase insurance sales
If you’re like most brokers, you already suggest ancillary benefit options to your clients. However, it’s clear from the chart above that employers are not taking your recommendations in many cases. Looking at benefits such as long-term and short-term disability, only about half of employees implement broker recommendations.
Of course, offering ancillary or voluntary benefits often comes down to a matter of cost in the employer’s mind. It’s your job to demonstrate that they may be paying a higher cost by not offering those coverage options, in terms of worse (and more expensive) health care outcomes, turnover due to employee dissatisfaction, and inability to attract top talent. Here are some suggestions for having the ancillary benefits conversation:
- Paint the picture of employee demand and the disconnect we’ve discussed, by sending them this infographic with important insights into the ancillary benefits market.
- Discuss how adding these coverage options can benefit hiring and retention initiatives. For instance, 48% of employees would change jobs for a better benefits package.
- Make ancillary benefits part of your larger benefits discussion and strategy—don’t just try to tack them on after you decide on health and Rx plans. This allows clients to see their total cost from the beginning, and make more informed decisions.
The benefits for you
As a broker, you naturally focus first on what’s best for your client, including when you recommend ancillary benefits. But keep in mind there are benefits for you as well:
- Increase insurance sales
- Increase employee engagement, which leads to happy clients
- Increase loyalty and retention, as you help clients make beneficial decisions
- Manage your clients’ entire benefits package, making it more complicated and unappealing to switch brokers
Interested in more insights into the ancillary benefits market? Be sure to download this infographic (and share with clients during your benefits discussions).