Separation Value-Added Services

[Insurance101]

I'm just getting into group health insurance, for it's been difficult to separate myself from other agents in the area. Same carriers same
price. :( What else in terms of value-added services can I offer prospective clients, to help rise above the noise?

 

[J.R.]

The fact that you answer your phone and/or return phone calls from clients.

 

[Insurance101]

I would hope that would be a given from every agent.

 

[somarco]

Group health can be a tough market to break in to. It can take you months to get a decision, then another 2 months before you get paid.

You need to have some capital to float you.

Like the rest of our business, many decisions are based on rate. Consumers are stupid and will buy anything that looks good. Agents are equally stupid, and lazy, and will show the low rate and forget to tell the consumer that those rates mean nothing until underwriting gets a chance to review.

What consumers want in their group health plan is high benefit and low premiums.

What agents want is low premiums & high commissions.

This results in a perfect storm with no one being happy.

Depending on the size group you are working, you may be able to talk about alternate funding such as fully insured minimum premium plans, premium lags or even partial self funding.

With smaller groups you can talk about split funding the case where the employer pays for a high deductible plan while the employee funds the HSA or buys a mini-med to cover routine items. You can also talk to the employer about management carve-outs and maybe even creating a rank & file plan funded with individual policies on payroll deduction.

You can also use Gap plans such as this to further distinguish yourself.

 

[SME]

I sold group coverage for several years before this. My advice is SIMPLIFY. Group agents make the mistake of presenting to many options and owners have other things to do than talk to you. My presentation was 4-5 pages and included only one benefit summary. I would tell clients "your job to know everything about _______ industry. It's my job to know about insurance. Let me do the work for you." Then I showed them my recommended plan and a one page spreadsheet showing the prices for the 3 plans closest to the recommended plan and thier current plan.

In end the only thing that will distinguish you from the pack is knowledge. Learn everything you can. Read every benefit summary, and if possible tour the headquarters of a few of your carriers. That way you can learn how things work behind the scenes and have a idea of the big picture.
Hope that helps.

 

[trvlnut]

Steph-
Why don't you sell group anymore?

 

[benefitsgal]

I am reading and hearing a lot about added value technology/hr services that agents are providing to their clients...there are a lot of different options out there.

Has anyone looked into any services "outside of the box"? I have sat in on a few different presentations and am continuing to see what is out there - it just appears as if most added value services are on the spendy side and with commissions decreasing.....and the features so darn complicated. That is one reason I joined this Insurance Forum - to learn about what other agents are using and what their experience is.

Finally, you are correct, for the most part we do have the same carriers/price so even as an experienced agent, I find I am having to get creative to retain and write new business.

It is so great there is a place to share information!

 

[J.R.]

I am reading and hearing a lot about added value technology/hr services that agents are providing to their clients...there are a lot of different options out there.

Has anyone looked into any services "outside of the box"? I have sat in on a few different presentations and am continuing to see what is out there - it just appears as if most added value services are on the spendy side and with commissions decreasing.....and the features so darn complicated. That is one reason I joined this Insurance Forum - to learn about what other agents are using and what their experience is.

Finally, you are correct, for the most part we do have the same carriers/price so even as an experienced agent, I find I am having to get creative to retain and write new business.

It is so great there is a place to share information!

I view my role with all of my clients as being their insurance agent 1st and a fellow small business owner (SBO) second. One tool that I use w/ every client who is a SBO....not a SOB is to offer creative ways to help them prosper in their business. First, I save them money every single year on their health care costs and protect them from being exposed to high insurance bills. Secondly, I share ideas about how to ensure that they stay in business. Personally, I love talking with other people about the ups and downs of running a business and if I can think of a way to help a client succeed in their business (there are lots of way to do this w/ a bit of research), and look after them year after year, there shouldn't be a reason for them to go elsewhere if I do my job correctly.

 

[Insurance101]

What do you mean in terms of technology? What presentations have you seen?

 

[benefitsgal]

I have looked at Instant Benefits, Benelogic, Online Benefits/Benergy, Benefit Software, and a couple others. Basically another way to communicate benefit information and other hr related information (including some workers comp info which I don't know much about) to employers and employees - the agent pays for it (and it is not cheap considering the 3-5% commissions we receive). Have you heard of any of these? Is anyone using any of these? If so, does it truly help with new business and retention??? Your experience with any services/products like this would be very much appreciated.