Today, brokers are taking a different approach to voluntary benefits by using them as a tool to amplify their clients’ benefit strategies.
In the past, employee benefit brokers (EBBs) offered traditional voluntary benefits like dental, vision, life and indemnity medical as mainstay offerings. However, non-traditional voluntary benefits like identity theft protection, pet insurance, and legal were offered only when specifically asked about these products by employers. Now around 30 percent of brokers are taking an offense (versus defense) approach by positioning voluntary benefits as products that can be beneficial to the overall success of employers and their employees, according to a recent article published by Benefits Pro.
Voluntary benefits have gained popularity since the birth of health care reform, which led to many benefits professionals taking a closer look at insurance coverage. As a result, many started to identify gaps that leave employees vulnerable to medical expenses. This resulted in the growing need for voluntary benefits.
Today’s employee benefits brokers are realizing that, in order to remain competitive, they need to be well-versed in voluntary benefits and how they can meet their clients’ needs. This has resulted in the overall growth of voluntary sales.
The average employee benefit broker's voluntary sales have increased an estimated 26 percent over the last three years.
“An increasing percentage of EBBs have discovered that voluntary not only has important revenue potential, but it has a strategic role in adding value to clients and in meeting the needs of a diverse employee population,” according to the article. “And, as in most things, the early adapters have been raking in a disproportionate share of the benefits.”
As more voluntary benefits are introduced to address the needs of employers and their employees, such as student loan repayment options and special attention to financial wellness, voluntary benefits sales will only continue to grow. With that, it’s becoming critically important for brokers to stay up-to-date with voluntary benefits in order to remain successful.
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Source: Voluntary productivity is growing