Achieving customer satisfaction and generating increased revenue are two primary objectives in any industry. Traditionally, brokers struggle to determine the true profitability of a given case. They also struggle with finding the best solution for their voluntary benefit prospects.
By effectively analyzing the economic value of each case in advance, both a broker and their selected enrollment company can make better business decisions about voluntary product opportunities. In short, proper case analysis should guide the planning for customer satisfaction and increased broker revenue from worksite sales.
Proper case profitability analysis requires a detailed information gathering process. It starts with understanding the basic characteristics of each case:
*What type of employer are you working with? What are their major lines of business?
*Where are employees located?
*What types of employees are being covered? (Blue collar, engineers, teachers, etc.)
*What is the pay scale?
Surveying each employers paid benefits reveals coverage gaps, helping you to find a perfect fit for a variety of products and services. Proper surveying yields critical information for developing a consultative worksite product needs analysis.
The survey asks several major benefit category questions, covering benefits such as:
Savings and Thrift Plans
Section 125, TSAs, etc.
What Employees Want
Present Voluntary Plans
What Employers Want to Offer
The online survey prioritizes offerings from a proposed Supplemental Voluntary Benefit Plan. The survey results can also be prioritized using either the 1998 LIMRA Study Data or broker-generated data concerning basic financial planning needs in areas like life insurance, disability insurance coverage, retirement plans or long term care coverage.
The LIMRA study asked employees what their most desired voluntary benefit products would be. The top three responses included health (61%), dental (57%) and life insurance (51%). Other preferred products included: prescription drugs (50%); vision care (49%); auto (49%); long-term disability (43%); homeowners (42%); short-term disability (38%); accidental death and dismemberment (33%); cancer/critical illness (24%); and long-term care (21%).
Through prioritization and the survey, you can generate a personalized worksite analysis report for employers.
Once the group thoroughly reviews the report, brokers may propose the most appropriate products and work with an employer to design an enrollment plan. A personalized consultative report is a great tool to illustrate voluntary product needs. It also shows the benefits of a long-term enrollment plan to the employer (rather than a “one time” campaign that will have no continuity). Finally, it completes a Consolidated Product Package for the group.
After completing the information survey and establishing a preliminary product/enrollment plan, brokers may create a case model and complete the case analysis to determine a cases value. This can also help evaluate the relative merits of different enrollment/communication plans.
Lets take a look at the case analysis process assumptions used in an illustration model for a Universal Life Product (see Figure 1).
In developing a case analysis, several key assumptions are considered to project employer participation. That participation begins with access for enrollment. Key questions to ask include: