The New, Game-Changing Model for Selling Voluntary Benefits

So why aren't more brokers placing a greater emphasis on voluntary benefits? For starters, most have only recently entered the market. Forty percent have been selling voluntary benefits for less than three years, and 20 percent have sold them for less than one. Other oft-reported reasons include a lack of client interest, a lack of broker familiarity and the view that the new offerings won't lead to significant financial gain.[i]

Perhaps the most common reason for avoiding voluntary, however, is fear and distrust among fellow brokers. Voluntary products can be a tough sell compared to ACA-mandated health benefits, and they typically require significant explanation and expertise on the part of the broker. Many firms don't staff those experts in-house – at least not yet – and they're often reluctant to open their books to brokers who do know the ins and outs of voluntary. The fact of the matter is, though, if you don't introduce voluntary benefits to your clients, someone else will.

Collaborating with Trusted Partners

The solution to this dilemma? A new, collaborative business model that begins with picking the right partners. Clients are going to demand voluntary benefits sooner rather than later, and brokers can position themselves for greater sales and ongoing business by working with trusted experts in life, disability, dental, vision and supplementary medical insurance. Rather than opening their books to third parties, however, firms can find the most success by bringing those experts in house. Current personnel focus on their areas of expertise, while new team members help to joint-sell and educate clients.

This model has already produced excellent results for several reasons. First, it allows a brokerage to pull voluntary benefits out of the appendix of a proposal. Instead of an add-on, these extras become integral components of a client's overall package. Second, collaboration allows for deeper, more thoroughly designed medical plans that cut costs for both employers and employees. With the addition of certain voluntary benefits – tailored to the needs of specific groups of workers – other benefits may be scaled back. Third, collaboration leads to greater participation. Instead of signing up for voluntary products separately, employees can work with one firm to enroll in all of their benefits at once.

Ultimately, these advantages lead to higher commissions and revenues, as well as greater opportunities to cross-sell and expand into 401ks, property and casualty insurance and other products clients often need. Just as importantly, collaboration leads to ongoing business for all parties involved. Well-established brokerages can gain new business and better satisfy current clients by updating their offerings. At the same time, voluntary experts can contribute to thorough, well-rounded proposals that are likely to result in renewals. In the increasingly competitive post-ACA health insurance market, cooperation is the key to sustainable growth.

This article summarizes a webinar hosted with David Fisher, Voluntary Benefits Division, and Justin Phipps, CBC, Employee Benefits Broker at Gus Bates Insurance & Investments. The webinar entitled "The New, Game-Changing Model for Selling Voluntary" was the second in a series presented by Aflac. The "Thrive from 2015 to 2025" broker webinar series aims to address the ongoing changes in the health insurance industry resulting from the Affordable Care Act (ACA) and how brokers can take advantage of their new role as health benefits advisors. To learn more, visit aflac.com/thrive2025.

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