Advisors and brokers alike are seeking new sources of revenue these days due to the changing benefits landscape and the impact of health care reform.
With all the uncertainty of what's to come, one thing is for sure: Health care reform will alter the face of the insurance industry, dramatically affecting the way insurance is bought and sold.
Health and life insurance sales and employer-funded benefits have always been the sweet spot for advisors and brokers. In these changing times though, many advisors and brokers are searching for new ways to increase revenue or replace lost income.
Voluntary benefits are projected to become the new sweet spot.
According to a recent Eastbridge Consulting Group survey, 53 percent of brokers said they already sell more voluntary today because of reform, with 15 percent saying they're selling significantly more. Another 32 percent expect voluntary to account for a larger portion of their sales in the future.
Many producers have already added the growing selection of traditional voluntary benefits to their offerings. These benefits, such as life, accident, cancer, critical illness, hospital indemnity, short- and long-term disability, vision and dental insurance, are designed to supplement core offerings.
The new voluntary benefits toolbox also includes non-traditional voluntary benefits that advisors and brokers are proactively cross-selling.
Like traditional voluntary benefits, non-traditional voluntary benefits are a great way for employers to extend their benefits offerings without incurring additional employer-paid premiums.
And, adding non-traditional voluntary benefits to their product portfolios allows producers to increase their revenue stream because they are selling additional products. These products can be an add-on for existing clients and could even be a door-opener to new clients. No additional licenses are required to sell non-traditional voluntary benefits.
