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October 25, 2016 at 08:00 PM
The “Aflac WorkForces Report 2016″ is the sixth annual study examining benefits trends and issues among employers and employees. The results consistently help to support the efforts of agents and brokers.
Here are five findings that can help drive your business.
1. Your greatest competition may simply be a lack of awareness.
Of companies not using a broker or consultant, 56 percent say it’s because their company works directly with their carriers or they have the benefits planning expertise in-house.
Having trouble getting your foot in the door? The reason may be less about cost and more because your prospective client isn’t aware of the value you can bring. Although working directly with a carrier or planning in-house is a viable solution, many companies are improving their business with the help of a benefits advisor. The study found 7 in 10 employers use a broker or benefits consultant to determine their benefits options. Of those:
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- 80 percent say their companies’ benefits packages enable them to reduce employee turnover, which is a greater proportion than those who don’t use a broker or benefits advisor (66 percent).
- 75 percent say the benefits their companies offer increase worker productivity, compared to 65 percent of those who don’t use a broker or benefits advisor.
2. It’s time to introduce your clients to private exchanges.
Sixteen (16) percent of employers project that they’ll move their employee health insurance benefits to a private exchange in 2016 — up from 6 percent in 2014 and 2015.
Online marketplaces such as Everwell, powered by Aflac, can help clients with the heavy lifting of benefits administration such as coordinating between multiple carriers, which helps businesses to save on administrative costs. Through a private exchange, you can offer your clients multiple benefits options and a variety of voluntary products in one streamlined platform. Over the past several years, exchanges have been fine-tuning their services, and enrollment is only expected to increase. The timing couldn’t be better to start making them part of your sales strategy.
3. Voluntary insurance can protect your clients’ bottom lines.
Since offering voluntary accident insurance, 51 percent of employers noticed a decline in their workers’ compensation claims.
If your clients’ workers’ compensation claims are up, they aren’t alone: Over half of employers (58 percent) say their workers’ compensation insurance premiums increased within the last three years. One solution consultants can offer is the addition of voluntary accident insurance. It’s a low-cost option for employers to effectively round out their benefits packages that offers employees cash benefits for accidents on and off the job. What’s more is the substantial decline in workers’ compensation claims that these companies reported: Of those who noticed a decline, 74 percent say it was significant (50 percent to 74 percent) or very significant (75 percent or more).
Voluntary insurance can be offered to cover a variety of health events, including accidents, but also short-term disability, hospital visits, cancer and more. The study found that nearly 4 in 5 employees (79 percent) see a growing need for voluntary insurance today compared to last year, and these products may help with retention. When compared to employees not offered workplace voluntary insurance, employees enrolled in workplace voluntary insurance are more likely to be extremely or very satisfied in their jobs and their benefits packages, as well as extremely or very prepared to pay out-of-pocket costs not covered by major medical/health insurance, related to an unexpected serious illness or injury.
