Excellent service can be a key differentiator in a competitive market
The voluntary benefits market is becoming increasingly crowded and competitive — and with so many carriers in the industry, it can be difficult to differentiate based on products alone. A strong, comprehensive portfolio is still important, but a quickly growing aspect of the employee benefits industry is emerging as a key differentiator: service. Excellent service can make or break a carrier’s relationship with its broker and employer clients. Recent research by Eastbridge Consulting Group shows administration and service is among the top two most important criteria both brokers and employers use to select a voluntary carrier. also pop up on the lists for brokers and employers, including claims integration, billing options, integration with enrollment needs and online services.
In fact, service issues are overwhelmingly the number one reason brokers switch their top carriers, cited by 56% of brokers in a recent Eastbridge survey (and more than a third of brokers have changed their top three voluntary/worksite carriers in the past one to three years). Again, other issues aside from products or price emerge as primary reasons for this turnover, including better integration with a client’s enrollment or administrative needs, good claims management and better online services. Here are three key areas brokers should consider when choosing and working with carriers to best meet their — and their clients’ — expectations for excellent service.
Administration
Brokers can help ensure their clients get strong support with benefits administration by understanding where they experience the most trouble. Getting products set up on enrollment and benefits administration systems and claims payment problems cause the most voluntary administration difficulty for employers, according to Eastbridge’s MarketVisionTM — The Employer Viewpoint© report. This is especially true for employers in manufacturing, the qa sector most likely to cite billing problems as an administrative issue. Health care employers also tend to list several administrative issues: a third or more say claims filing and payment, billing, and getting products set up on enrollment or benefit administration systems are administrative pain points, and more than one-quarter say electronic data exchange is the primary cause of billing problems.
Large employers are most likely to indicate they have numerous problems with benefits administration, but smaller employers with between 50 and 500 workers aren’t exempt from these concerns, and in many cases experience them more often than the overall average. Brokers and employers need to trust their carrier is as dedicated as they are to selecting the best enrollment and administrative support solutions. The right partner with the right tools and commitment is often the difference between a successful long-term relationship or a much shorter and less satisfying one.
Billing
The ability to access a wide range of capabilities and services online through a website or portal is essential to brokers, employers and employees. In fact, one-third of carriers surveyed for Eastbridge’s MarketVisionTM — The Employer Viewpoint© report say they wouldn’t choose a voluntary carrier that didn’t provide online administration, up from 21% just two years ago. Personal services employers are even more emphatic: 56% say they wouldn’t select a carrier without online administration services. Only 4% of employers don’t think this is important.
Online services
The ability to access a wide range of capabilities and services online through a website or portal is essential to brokers, employers and employees. In fact, one-third of carriers surveyed for Eastbridge’s MarketVisionTM — The Employer Viewpoint© report say they wouldn’t choose a voluntary carrier that didn’t provide online administration, up from 21% just two years ago. Personal services employers are even more emphatic: 56% say they wouldn’t select a carrier without online administration services. Only 4% of employers don’t think this is important.
Employers check a long list of online services they consider critical. The top five are all employee-focused services, including the ability of employees to file claims, the ability to change employee’s coverages, the ability of employees to check their claim status, the ability of employees to view available benefits specific to their purchase, and the availability of forms and materials. Employers with 100–500 workers are among those placing the greatest emphasis on employees’ ability to file claims and check claim status.
Outstanding service that offers robust support for brokers, employers and their employees is increasingly recognized as a crucial and valuable asset in a competitive market. 5Star Life’s dedication to making this collaborative experience productive and rewarding sets us apart. Discover more about 5Star Life Insurance Company, our commitment to partnering with you, and our award-winning service recognized by Forbes two years in a row by visiting us at 5starlifeinsurance.com.
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