5 Trends Drive Benefits Brokers' Use Of Technology

Similarly, those looking to be acquired can improve their valuations by becoming technology-enabled. Having data organized in an agency management system instead of spreadsheets and paper can be very appealing to a potential buyer because it enables a smooth transfer of data. Also, employer clients who are entrenched in a broker’s technology solution are more apt to stay on board when their broker is acquired.

4. More than simple education. Many workers will be offered consumer-driven health options for the first time this year. Our survey reports that 66% of managers believe employees are going to need a lot of support, both in getting started and continuing the option. And just 26% feel that employees are currently capable of managing benefits on their own if given the right tools. Brokers will have to deliver interactive decision-support tools to promote healthy enrollment levels that will generate the expected cost savings for companies.

These companies are looking to online tools for communications, account tracking and for support of education, planning and incentive programs. Respondents ranked health plan communication and plan comparison among the most critical online tools. The quality, not just the existence, of a benefits portal will make the difference between a well-executed consumer strategy and a lackluster result.

5. Customers demand more. Corporate clients are asking for more from their brokers. To deliver the level of service required, brokers have been shifting from intermediaries to consultants. The role of consultant requires a more sophisticated level of involvement, which, in turn, requires use of more advanced tools to provide greater depth and breadth of service.

As payroll providers, banks and other service vendors fill the void for benefits technology, complacent brokers gradually will lose their foothold with clients. To remain irreplaceable, brokers not only need to deliver benefits technology solutions to clients but also should employ a portal to communicate easily with clients daily. Such portals can arm a client’s human resources staff with potent research tools and enable the broker and client to share documents and messages in a secure environment. In addition to a portal, some brokers may choose to e-mail newsletters filled with timely content to stay top of mind. Those who capitalize on these ideas will elevate customer service to a new level of sophistication.

Clearly, technology is one of the keys to brokers thriving, particularly in an environment of decreasing commissions and greater plan complexity. And in an industry where brokers essentially are selling the same services, successful brokers need to stand apart from the rest. All trends point to technology as an integral part of the answer, whether it’s for internal efficiency, client communication, task automation for clients or self-service for employees.