Technology has redefined the role of a broker
During the COVID-19 pandemic, insurance brokers have been on the frontlines of constant policy changes, never-ending open enrollment periods, and more.…
During the COVID-19 pandemic, insurance brokers have been on the frontlines of constant policy changes, never-ending open enrollment periods, and more. Matt Donaldson, head of channel at Rippling, recently shared his thoughts on the challenges brokers are facing and how they can prepare for the changing benefits environment.
What challenges are insurance brokers facing during COVID-19?
Social distancing has taken away one of the big advantages brokers have over digital competitors — the personal connection of doing business in-person. We work with more than 100 brokers across the country, and they tell us they’re having to find new ways to prove the value of the relationship model without live events and client meetings.
At the same time, brokers have been in the trenches with their clients, fielding questions on everything from new federally mandated sick-leave to whether their health care plan covers employees and dependents who need treatment for COVID-19. It’s put a lot of strain on their systems and staff.
Digital brokers have threatened the traditional model over the last several years. Have brokers been able to keep up?
Right now it’s not a fair fight. Digital players have much less overhead because they can automate core processes. Meanwhile, brokers are stuck doing time-consuming paperwork that cuts into their margins, especially for small-group insurance.
The good news is brokers now have their own digital tools to choose from and adoption rates are going up. The bad news is they’re still behind the curve. Their customers expect seamless, all-in-one solutions for payroll, benefits, and onboarding — brokers only offer the benefits piece.
How is the benefits environment changing in the age of COVID-19 — and what can brokers do to prepare?
COVID-19 is changing how companies manage insurance — they’re shopping around with cost and plan design in mind, and they’re using digital channels to do it. Remote work is here to stay, and so is managing insurance online.
As unemployment stays high and employee bases shrink, brokers are taking in less revenue. But despite the economic pressure, this is a moment when brokers can shine and prove their value as trusted advisors — if they adapt.
A recent Oliver Wyman analysis recommended that brokers “review digital capabilities and consider partnering with insurtechs to source leads and process applications.” In other words, use technology both to automate backend work and open up new ways of winning business. This is the time clients need them the most, so embrace tools to reach them remotely.
How does Rippling partner with brokers?
We launched our broker platform nine months ago, and Rippling has already helped brokers across the country earn over $3 million in commissions. Our goal is to give brokers all the advantages and efficiencies of a digital brokerage so they can finally compete head-to-head — and win. For starters, brokers can land customers they couldn’t before who want an easy, all-in-one HR solution.
We also automate a lot of the manual paperwork and processes that suck up brokers’ time and margins. Free tools like instant quoting and end-to-end carrier fulfillment reduce their operational costs and boost their bottom lines, so they can get back to doing what they do best.
How does technology ultimately benefit brokers and their customers?
Eight years ago, you couldn’t sign up for health insurance online — it was still paper and fax. Insuretech is less than a decade old, and it’s already transformed our expectations of buying and managing insurance.
Technology has redefined the role of the broker, but it’s not the boogeyman some feared. In fact, today most brokers are embracing tech because they’ve seen how much time and money it can save them and their clients. For employees, it makes their lives a lot easier and gives them more visibility and control over their benefits. They don’t have to fill out endless forms anymore, and it’s easy to access and update their information online if they move addresses, get married, etc.
Software can also help brokerages stay compliant by default. For example, tools like AgentSync ensure that brokers are properly licensed before they close deals.
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