There has been much interest in voluntary benefits and much speculation about how health care reform will change the way brokers approach the benefits market. But what's really happened? Have any of the suggested changes been implemented? Eastbridge Consulting Group and Benefits Selling got together to find some answers to these questions by asking the brokers themselves.
One finding was particularly obvious—the majority of brokers now sell voluntary, at least occasionally. Just 11 percent of the survey respondents don't sell voluntary at all and more than 60 percent of those who don't sell it already fully expect to do so in the near future.
Top Voluntary Products Sold
| Product | Benefit Brokers |
| Short-term disability | 60% |
| Term life insurance | 54% |
| Dental insurance | 45% |
| Critical illness insurance | 38% |
| Accident insurance (personal injury not AD&D) | 36% |
| Vision insurance (without medical) | 33% |
| Cancer insurance | 25% |
| Long-term disability insurance | 21% |
It's clear from the responses that health care reform has influenced broker behavior. About half (53 percent) said they already sell more voluntary today because of reform, with 15 percent saying they're selling significantly more. In addition to those already selling more, another 32 percent expect voluntary to account for a larger portion of their sales in the future.
The changes in the voluntary products sold most often by benefit brokers were more subtle. As seen in past surveys, brokers most often sell voluntary versions of the traditional group products—dental, term life and short-term disability. But some very interesting additions show up on the list. Critical illness and accident (personal injury accident, not AD&D) are both sold more now by benefit brokers than ever before. We know from conversations with brokers and carriers that both products remain well-positioned to help employees cover out-of-pocket expenses due to higher deductibles and co-pays on their health plans.
The following chart shows the other products listed as a top voluntary product by 20 percent or more of brokers.
Brokers also are looking to enhance their product portfolio with other “non-traditional” voluntary benefits. Wellness programs are the most popular benefit but discount health plans, legal plans and ID theft coverage also are gaining more traction.
Non-Traditional Products Sold
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| Product | Benefit Brokers |
| Wellness programs | 73% |
| Discount health programs | 38% |
| Legal plans | 31% |
| ID theft coverage | 29% |
| Pet insurance | 16% |
| Computer, appliance, furniture purchase programs | 8% |
| Vacation programs | 5% |
We also explored whether brokers lean toward a single-carrier or a multi-carrier offering when choosing voluntary products and carriers for their clients. A large majority (75 percent) said they choose the best products regardless of the number of carriers in the market. That's a significant increase compared to the percentage reported in another survey completed a few years ago. Then, just 47 percent said they do this.
Seventeen percent of brokers use the same carrier for all voluntary products to simplify issue, billing and servicing. This was down from 28 percent in the prior survey. Eight percent select one carrier so they have access to bundled discounts.
That's a significant decrease from the 22 percent in the last study. It likely has little to do with health care reform directly, but instead reflects the fact that brokers are getting more experienced and comfortable with voluntary, are treating these products more like their traditional lines, and are selecting “best of breed” products.
Areas for Improvement by Enrollment Companies or Carrier Enrollers
| Response | Percent |
| Treat me like the customer | 11% |
| Provide me better service | 16% |
| Lower the price/cost of their service | 16% |
| Improve enroller quality | 28% |
| Offer better, different, or more products | 16% |
| Be more flexible about their process | 14% |
The desire for high product quality also was reflected in the reasons why brokers use a specific carrier most often. Almost half (45 percent) said it's because of the carrier's quality product, while 26 percent said it was because of the relationship they have with the carrier's sales rep or staff. The following chart shows all reasons given by those surveyed.
[Note: Brokers could only choose one response (the one they felt is most important).]
When asked how many different voluntary carriers their agency has worked with in the last year, the majority said between two and five carriers. These results are very similar to those in a 2010 study of brokers.
When asked if they expect the number of carriers used to change in the next two to three years, more than half (59 percent) see it increasing and 14 percent believe the increase will be significant. About one-third said they don't expect any change and 7 percent expect the number to decrease.
Enrollment
Those who use an enrollment company or carrier enrollers were asked how satisfied they are with the company's performance. Forty-six percent said they are “extremely” or “very” satisfied. Another 41 percent said “satisfied” and only 13 percent said “dissatisfied.”
When asked how the enrollment company or carrier could improve, the answers were varied. The most common answer was “improve their enroller quality.”
The majority (60 percent) of the brokers surveyed said they typically use a carrier's enrollment platform to do their enrollments. Twenty-one percent don't use any technology platform. Ten percent use a third-party platform and nine percent a proprietary platform they (or their agency) created or commissioned.
Reason for Using Primary Carrier
| Reason | Percent Choosing |
| The carrier has quality products. | 46% |
| We have a relationship with the rep or carrier staff. | 26% |
| The carrier handles the entire case for us. | 14% |
| We sell the carrier's employer paid and medical products. | 10% |
| The carrier provides enrollers. | 3% |
| The carrier has very competitive compensation. | 2% |
When it comes to enrollment, the “tried and true” methods still prevail. The most common methods are a combination of group and one-on-one meetings or voluntary or mandatory one-on-one meetings only.
The largest percentage (39 percent) of brokers use in-house enrollers to enroll their cases, followed by carrier enrollers at 36 percent. Just four percent use an enrollment company and 13 percent do not use enrollers but instead use online or call center enrollments.
Enrollment Meeting Method
| Type | Percent |
| Group meeting followed by one-one one meeting | 29% |
| Voluntary one-on-one meeting only | 24% |
| Mandatory one-on-one meeting only | 23% |
| Voluntary group meeting only | 9% |
| Mandatory group meeting only | 9% |
| Internet/web | 4% |
| Call center | 1% |
The survey also looked at what brokers think they need in order to be more successful in selling voluntary products. “More knowledge about carriers and their offerings” was the top answer selected. “More time to sell voluntary” and “more knowledge about products” were the next two most common responses.
Overall, the survey showed brokers are evolving and engaging more with voluntary products. The move has been dramatic in a few areas and more subtle in others, but it's more than likely we haven't seen the “end results” just yet. The market—and brokers—will continue to evolve as the farther-reaching implications of health care reform unfold.
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