The broker’s frontier: individual consumer marketplace

The concept of a “traditional workforce” is slowly eroding, and it is taking the traditional role of a broker with it. With the rise of a more complex workforce, clients are turning to brokers for support beyond their health plan needs. The roles of a broker and consultant now include everything from plan designer and HR consultant to communication and business strategist. 

Remaining competitive and increasing revenue is more challenging than ever for brokers and consultants, but expanding individual coverage offerings is one area of opportunity to meet demanding needs. Those who can expand offerings beyond group coverage will be able to evolve and grow with today’s dynamic workforce. Single-solution platforms are at the heart of this strategy, as they allow brokerage firms to meet the changes in today’s workforce and expand the client connection beyond that of the employer/employee relationship. 

All of life’s moments

Today’s multigenerational workforce is made up of a rising number of non-traditional employees like gig-workers, part-time workers, and contractors. And employers understand the importance of finding ways to retain non-traditional employees, which means brokers need to consider alternative strategies to meet client needs while still creating revenue. In 2019, the gig economy represented 36% of the U.S. workforce, and the expectation is that the number will continue to increase. The gig economy is unique, in that it allows individuals more flexibility while also providing consumers with much needed services — a win-win. 

But the non-traditional relationship between the gig worker and employer creates a larger need for individual coverage over the group coverage typically found in an employer-employee relationship. This is where brokers and consultants can leverage an individual consumer marketplace to help attract and retain gig workers for employers, while also expanding their own client list. An individual consumer marketplace allows the gig worker the ability to purchase ACA compliant and non-ACA compliant plans to cover their benefits needs. Supplemental products are also available in an individual marketplace and provide much needed protection from the unexpected. 

It is also important for brokers and consultants to look for solutions that extend their relationship with the individual consumer beyond separation from employment. Portability provisions allow many former employees to take voluntary products with them. However, for the displaced worker, COBRA is often an unaffordable option. By standing up an individual consumer marketplace, brokers can provide an affordable alternative to COBRA, while maintaining their relationship with the employee. 

Additionally, brokers can expand their individual consumer marketplace business by offering retirement products. As an estimated 10,000 baby boomers become eligible for Medicare every day, the demand for supplemental insurance coverage continues to increase. Brokers can create additional revenue opportunities by leveraging an individual consumer marketplace that offers Medicare Supplement products, extending their relationship with the former employee.  

Communication and data-driven: a competitive edge

As brokers consult with their clients, helping them create a communication strategy that drives year-round engagement is essential. And single-solution platforms are making it possible for brokers to streamline this strategy and communicate the right message at the right time. Most communication is delivered to employees at, or just before, open enrollment. But brokers can now use transformative technology that allows for easily digestible, year-round engagement. These tools utilize text messaging, push notifications, and email to keep employees better informed and improve benefits literacy. 

In addition to communication strategies, data is playing an ever-increasing role in client consultation and plan decisions. Cloud-based platforms, data analytics, and creative digital solutions allow brokers to provide clients with greater insight and identify trends impacting health care costs. Brokers can also use data to determine ROI around newly implemented wellness programs, cost containment tools, and potential fraud or abuse by providers.  

Single-solution platforms use hyper-personalized data to help employees make better decisions. By having employees answer a few questions about their family and household, lifestyle, finances, and medical history, decision support tools powered by AI technology can recommend plans based on their unique situation. When coupled with year-round digital communication strategies, hyper-personalized data is transformed into actionable items that offer cost-saving solutions and better health plan usage.  

Understanding a client’s needs through insightful data analysis offered through single solution platforms and acting on the information is a unique value proposition brokerage firms can offer to employer groups that will give them a competitive edge.  

The understood customer

A broker’s priorities are simple: keeping clients happy and growing their business. Both are being made more difficult by a rapidly evolving workforce. By using single-solution platforms, brokers can expand business into the individual consumer marketplace, wield powerful data to better meet a client’s needs, streamline services, and implement communications strategies for existing and future clients. All of which help provide the value that shows a client that their needs are understood, and they are in good hands.

Scott Prince is Director of Broker Distribution at Benefitfocus.