Small businesses that are growing may well be the sweet spot for employee benefits consultants over the next couple of years.
A LIMRA study of small businesses reveals that a very high percentage of those on a growth curve with between 10 and 24 employees see the need for a benefits broker to help them with their health benefits strategies.
LIMRA asked respondents about their planned use of benefits advisors for the next two years. Of all those surveyed, 94 percent said the need for such help will either stay the same or increase.
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Small businesses that are growing demonstrated an even higher need for such services, LIMRA reported. One obvious reason: As the Patient Protection and Affordable Care Act is rolled out, businesses that are adding employees may soon reach certain trigger points that will require them to take certain actions as required by the act.
Apart from identifying this sweet spot for potential brokerage sales, the survey reported on the services most in demand by small businesses from benefits advisors. Here's some of the top ones ranked:
- Review plans to ensure competitive rates and services, 84 percent
- Review renewal rate adjustment to ensure competitiveness and appropriateness, 78 percent
- Assist with selection of carrier, 75 percent
- Keep informed of government regulations, 72 percent
- Recommend plan enhancements, 66 percent
- Assist with plan design, 65 percent
- Prepare RFPs for new carrier, 64 percent
- Help resolve problems with carriers, 55 percent
While some of those surveyed haven't previously turned to benefits advisors for assistance, the LIMRA study indicated that most of them would be doing so over the next two years.
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
