Practical Tips On Buying Benefits Enrollment Software

There are a number of pricing strategies in use by benefits vendors in offering the software to clients. The most common is to pass the cost directly to the client, marking up the price 10% to 20% or offering the service at no charge. The agency or broker will have to determine the pricing strategy each is comfortable with. They may determine the strategy on a per-client basis if necessary.

Because most brokers do not have the resources of an information technology professional with a benefits background, it is important to determine who actually builds each application and the fees associated with each, if done by the enrollment vendor. The application is the actual set of screens (Web-based) and voice prompts (telephone-based) the employee sees or hears when enrolling.

Build fees can easily become a major obstacle when launching your enrollment product to clients.

Many providers offer Internet-only enrollment. This is only a solution if 100% of your clients employees have the skills needed to gain access to the Internet. Because there is still a high percentage of people without Internet access from home, your client would have the additional expense of employees enrolling during work time at the office.

There are a few providers that offer both Web and telephone enrollment. By offering both as alternative access methods, you ensure 100% participation. According to another Mercer study, large employers can expect 63% of their employees to enroll online and must provide another form of enrollment for the remainder.

After you have narrowed your list to 3 to 5 vendors and fully reviewed their products, contact each vendor to schedule demonstrations and review their references, which should include both brokers and end users. Online demonstrations will give you the ability to see what the employer and employee will see when using the product. Pay close attention to ease of use, as that will drive client satisfaction.

Once you have successfully chosen a provider, it is time to enjoy the rewards of being able to offer an automated enrollment program: increased sales for your voluntary benefits and happier clients.

Todd R. Salansky is marketing director of Niagara Insurance Group, Buffalo, N.Y., a unit of Brown & Brown Inc., Daytona Beach, Fla. His e-mail address is [email protected].

Reproduced from National Underwriter Edition, April 9, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.