IT issues top the list of carrier issues for brokers working with supplemental products

At a time of upheaval and change in the benefits world, brokers are reporting that their top pain points are centered around technology, a new survey has found.

The Workplace Benefit Broker Survey, conducted by Wellfleet Workplace and EIS, noted that the volatility in the labor market is causing employers to put a new emphasis on benefits, and brokers have an opportunity to expand their ability to support clients. The new report surveyed brokers, producers, and agents who worked with nonmedical and supplemental products, asking what issues they were experiencing and what issues their clients reported.

“The volatility of the employment market is creating chaos amongst employers,” the report said. “While employers are used to competing with one another on salaries, vacation, and sick time, they are now having to up the ante and employee benefits packages are at the top of the list. This creates additional challenges in managing those benefits and securing the right tools and broker support.” The report added that technology is seen by many as the weakest link in the relationship between client and broker.

Carriers’ legacy tech a barrier

The survey found that brokers’ top six pain points with carriers are all IT-related. The results showed those top issues were: commission structure (52%), billing errors (48%), lack of real-time data insights for the broker and client (44%), time to underwrite the group (43%), and limited plan customization and slow data processing time (42%), respectively.

Product flexibility was also an issue, the report said, among all sizes of employer groups. “Limited plan customization” was the No. #3 top pain point for brokers in small and medium groups, and among the top five when brokers were asked what they desired from carriers.

“While price and financial rating are top of mind for brokers and their clients, throughout the survey, brokers of all group sizes noted the need for product depth and flexibility in order to feel comfortable in recommending carriers to their clients, the report said. “The survey found brokers aren’t receiving the digital product accommodations they desire.”

The results showed that technology was the most important factor that would influence the recommendation of a product, if price and coverage options were the same between carriers. “This and other survey data trends toward a conclusion that technology is a key factor in creating a favorable experience for brokers and their clients,” the report said.

A focus on marketing

Marketing support was the No. #2 pain point for brokers in their relationship with carriers, the report said. The results showed that brokers found stronger engagement and higher participation in benefits programs when there was robust marketing and communications of benefit plans.

This problem is more acutely felt by brokers working with small and medium employers, who say that productive connections with carriers give them a sense of support and makes it more likely they will continue working with the carrier.

“Employers are stretched thin with the management of their current benefits programs, as well as crafting and implementing benefit strategies that resonate with their employees. When you add in a poor technology experience, the pressure HR benefits managers feel grows exponentially,” said Samantha Chow, LAH Markets Lead at EIS. “The survey findings reveal the carriers that are able to provide meaningful solutions are going to excel.”

Read more:

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• It’s a matter of time: Preparing for tough talks with carriers
• Employers are getting more savvy with their voluntary benefit offerings