Compliance, HR resources and communication platforms have all taken turns as the bright-and-shiny of the day. (Photo: Shutterstock)
Benefits advisors are prone to chasing bright-and-shinies in a way that makes most heads spin. The most recent trend to capture our attention is the re-emergence of value-based insurance design (VBID).
Not long ago, the industry's attention was focused almost completely on technology/ben admin. Compliance, HR resources and communication platforms have all taken turns as the bright-and-shiny of the day. The spotlight blinds advisors to all of the other solutions that came before and are collecting dust in the toolbox.
|Take advantage of the door opener
Recently, advisors are finding it easier to get the attention of the C-Suite. One of the most obvious reasons is the potential for significant savings from VBID ideas.
Kevin Trokey is founding partner and
coach at St. Louis-based Q4intelligence.
Of course, you would be foolish to not take advantage of a conversation that can get you an audience with a prospect. However, it's critical to expand the conversation once in the door. Show up curious, take the time to learn what it is about their current situation that is holding them back, and make it clear you have any number of strategies to help them.
VBID is producing another interesting phenomenon. As large as its bandwagon has become, there are advisors who push back against it with equal passion. Too many advisors look at the more extreme versions of VBID and don't see it as applicable for their market.
If they would reframe the idea as simply taking a creative approach to plan design, most would find a comfortable place on the spectrum. They would see that options like HRAs, level-funding and self-funding apply to much of the market.
We teach that advisors need to establish a standard as early in the sales conversation as possible. There are two components to that standard:
1. It must become very clear to both the advisor and the prospect that there is an opportunity for significant improvement to the prospect's overall HR/benefit program.
2. It must be clear to both the advisor and the prospect that they could effectively work together and that the advisor has access to the right solutions and has the ability to implement those solutions.
Forgotten bright-and-shinies
I am certain that most of you have made significant investments in other solutions—compliance, HR resources, technology, communication, etc. But do you think your clients need those solutions any less now?
Yet, because they are so excited about the potential of VBID, advisors are passionately introducing VBID to prospects but leaving other solutions to collect dust.
With the increased complexity of VBID plans, employers face greater compliance burdens than ever before. Because of that increased complexity, having the right ben admin system to create consistent operational efficiencies is absolutely necessary.
|Addition by addition
You need to be having VBID conversations with your prospects. But to be the complete advisor your clients need, you can't be a one-trick VBID pony. No single solution should ever become the entirety of your conversation. They should be embraced only when they add to the conversation and allow it to evolve.
If you hunt with a silver bullet, you're destined to shoot yourself in the foot.
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