Workscape Institute

The benefits brokerage business has been largely defined by an ability to build strong relationships with clients and through consistent delivery on their needs.  Those who were able to communicate effectively, set and meet fair expectations, as well as identify appropriate solutions were able to attain and keep clients.

Relationships are still crucial to the industry, and probably will remain so, but over the past few years a new dynamic has taken shape that has started to differentiate the innovative brokers from their more traditional peers.  New benefits solutions, built on leading-edge technology platforms, are gaining popularity across market segments and company sizes, and yet the vast majority of brokers haven’t found a way to incorporate this into their set of services.  As the adoption of these new technologies increases, so will the challenge for brokers who rely upon relationships alone to retain and expand services.

Follow up:

Here are some key advantages for talking about technology:

1) Businesses are now seeking innovations & fresh ideas from their brokers.  A flurry of activity in the past 12-18 months, such as a widespread trend away from Total Human Resources Outsourcing (HRO) and towards select outsourcing where proven technologies exist with attractive Return on Investment (ROI,) are redefining best practices and dismissing old assumptions.  This is an opportune moment for brokers to become thought leaders by observing the trend towards content-rich Web-based technologies for enrollment, eligibility, and wellness initiatives.  Those who can both discuss these transitions in detail and provide the associated services are in position to continue expanding their business.

2) You can provide a greater range of services at a lower cost.  Technology platforms that increase efficiencies of key benefits processes, and provide intuitive interfaces for all intended users, drive higher Web adoption and save clients money over time against traditional manual or IVR processes.  While cost savings may not have the cachet of “thought leadership”, it certainly helps your client… particularly during tough economic times!

3) Content-rich platforms dovetail with Consumer-Directed Healthcare Plans (CDHP), another innovative trend.  CDHP is appealing because of its flexibility and its affordability, when properly developed and supported, for both employer and employee.  However, CDHP can’t deliver its optimal benefits unless employees have 24x7 access to vital resources and decision support tools in order to make an informed choice about their health.  New technologies that offer a centralized, “one-stop-shop” for these resources, all with the convenience of Web-based access and single-sign on, are helping CDHP adoption rates to improve for many organizations.

4) New technologies offer detailed reporting and keep your competitors away.  When benefits processes are automated through deployment of new technologies, one highly valuable outcome is a new set of accurate and advisor-accessible reports at your disposal.  Best-of-breed solutions include robust reporting tools that provide greatly-enhanced visibility into your client’s employee benefits enrollment activity metrics and results – including plan migration reports, Evidence of Insurability, plan selection by demographic and declined coverage reports.  Armed with this data, brokers can become better strategic partners to their clients and reduce the likelihood that clients will reach out to other providers for additional insights and best practices.

Combined, these advantages present a very compelling opportunity to brokers who are looking for new and expanded service opportunities.  If an advisor is not bringing new cutting edge technology and ideas to their clients, the business could be at risk.