New Survey: Online Benefits Solution is a ‘Critical Component’ of Brokers’ Value Proposition

July 31, 2017
By

Category: Benefits

Brokers Survey - 2017

Although the future of the national health policy remains uncertain, benefits professionals maintain a positive outlook. According to the recently released 2017 BenefitsPRO Health Care Survey, which surveyed nearly 350 professionals from all industry sectors, the majority (55%) of professionals “believe the Trump presidency will have a positive effect on their business.” Of the respondents, 32% predict a negative impact resulting from the presidency.

As for the future of the Affordable Care Act (ACA):

  • 50% of respondents want it retained and repaired
  • 28% of respondents want a gradual repeal and replacement
  • 22% of respondents want it repealed and replaced immediately  

A Modern Way for Brokers to Put Employees First

In order to sell a higher volume of voluntary benefits in the year ahead, brokers agree that they’ll need lower prices, “simpler and more convenient enrollment options,” increased education for employers and plan members, consumer life-stage bundles, and “carriers with better brands.”

Now more than ever, online electronic enrollment tools help brokers efficiently offer great employee benefits. The majority of respondents (65%) reported that offering and using an online enrollment or benefits administration solution is “a critical component of their value proposition.”  

Online Electronic Benefits Enrollment

Source: 2017 BenefitsPRO Health Care Survey

As more brokers use online platforms for their benefits administration, employees benefit from the ease of selecting and updating their health plans. This improved user experience is a huge selling point for brokers focused on increasing business in the year ahead.

Related: Employee Benefits: Here’s What Top Talent Wants

What’s the Future of the Broker Business?

Just as bringing on new clients is important for brokers, so too is business retention. According to the BenefitsPRO survey, retention remains the most difficult among small groups. The percentages of respondents who reported that clients dropped coverage in 2016 for varying group sizes are as follows:

  • Small groups (fewer than 100 lives): 47%
  • Mid-market groups (101 to 500 lives): 25%
  • Large groups (501 to 3,000 lives): 14%
  • National accounts (more than 3,000 lives): 7%

While brokers remain optimistic about maintaining or increasing their commissions in 2017, they’re even more optimistic about those numbers in 2018. Among respondents, 56% believe their commissions will increase or remain steady – and only 18% predict a decrease in commissions.

“Fifty-five percent of respondents are neutral or strongly agree with the statement that they will use voluntary benefits to offset anticipated commission losses from health insurance this year.”

Ready for an automated benefits solution? Check out our modern employee benefits platform.

About

A Content Marketing Manager at Zenefits, Jordan has a lot to say about the nuances of payroll, benefits, and HR (and about the way we say it). He was raised by small business owners, so it’s no surprise that Jordan loves helping entrepreneurs achieve their goals.

Category: Benefits


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