Benefits brokers tend to fall into three main camps: those who only sell employer-sponsored healthcare plans, those who focus mainly on voluntary benefits, and those who sell both. Here is what you need to know from a revenue standpoint: brokers in the latter two categories earn higher revenues thanks to voluntary benefits.
Data from a recently published Benefits Pro survey shows that voluntary and combined brokers outpaced their healthcare-only counterparts significantly in 2021. The data also indicates that brokers offering both healthcare plans and voluntary benefits gained a larger share of the total market last year.
In a nutshell, voluntary benefits pay off. Employees want them. You have the opportunity to provide them through the packages you put together for your clients. The right package makes you a hero to the employers you serve. You both reap the benefits by way of happy employees.
More About the Survey
The Benefits Pro survey starts with the understanding that the top five carriers continue to dominate the market, but whether brokers access voluntary benefits through big-name carriers or their lesser-known counterparts doesn't seem to matter much. Voluntary benefits drive revenues across the board.
According to the survey:
- Combined core-voluntary benefits brokers scored a 16% sales increase in 2021
- The industry average for 2021 growth was a comparatively low 11.3%
- 71% of voluntary brokers earned more than half their revenue from voluntary benefits
- 98% of combined brokers earned 50% or fewer revenues from voluntary benefits
No matter how you cut it, voluntary benefits are a revenue driver for brokers. They could be the key to growing your business above and beyond just adding more clients to your customer base.
Find Out What They Want
How do you get started with voluntary benefits? You start by finding out what employees want. And for that, you go directly to employers. Talk with the HR managers and company executives you normally work with. If they don't know what employees want, encourage them to ask or send out an employee survey.
Here are some of the most frequently requested voluntary benefits right now:
- Dental and vision
- Life insurance
- Accident coverage
- Long-term and critical illness
- Hospital indemnity
- Identity theft protection
Voluntary benefits are attractive because they give employees something extra without requiring significant investment by employers. Most of the cost for voluntary benefits is paid for by employees themselves. However, group rates help keep costs in check.
Think Outside the Box
Today's employees are looking for help in many areas. Another fantastic avenue to pursue would be pet benefits. As the costs of both medical care and pet supplies continue to rise, employees appreciate benefits plans that help them contain those costs.
There is no denying that voluntary benefits help drive revenue, protect your book of business, and position you as your customers trusted advisor. Voluntary benefits should be on your list of possibilities as you investigate new options for your clients. They are the key to growing your business in a quickly changing benefits landscape.