Re-enrollment isn't discussed enough in the voluntary market. It seems only a few brokers have true re-enrollment strategies. Too often, a new case is enrolled and then left untouched unless there's a rate change or other event that mandates a change. That's what we call “love 'em and leave 'em” marketing.
Do you think re-enrollment is primarily for new hires? What about those who didn't buy the first time? Do you ever approach them again? Employees who don't buy at the initial enrollment are not making the decision to never buy—it just may not be the right time. Remember that circumstances change. A 26-year old who chooses not to purchase a product the first time may now have a mortgage and/or an infant child and better understand the need for coverage.
It's important to continually re-market and allow employees additional opportunities to buy coverage. This is especially important in light of the lower participation rates seen in initial enrollments today. As the chart shows, the average participation rates of almost every product line have declined in recent years. If we look at participation by account size, we see a similar decline.
Some brokers claim they don't sell to previous non-buyers because carriers don't allow another open enrollment with guaranteed issue (GI). However, this isn't always the case. Many carriers understand there are ways to provide another GI offer at re-enrollment without adverse selection. The offer may not be identical to the initial one, but GI is still possible.
Also consider those who might have bought less than the amount for which they qualified. They may have purchased based on budget, rather than on need. Re-enrollment gives them an opportunity to increase coverage. Also keep in mind that enlightened carriers frequently offer incremental increases on a GI basis, which is a great plus for your customers.
When you sell a case, it's important you get the highest return from the investment you have made in terms of time and money. Insist on carrier partners that understand this and can help you maximize participation in the account—and your investment—over time.
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