Competition is heating up in the voluntary space. It used to be that brokers in voluntary benefits could build up a block of business and hang on to it for a long time. Now brokers who previously handled health are discovering that voluntary benefits are a good revenue source.
How do you differentiate yourself? Employee Benefit Adviser’s John McCormick recently talked to Eastbridge Consulting Group’s Nick Rockwell about how brokers can compete in voluntary.
Rockwell says brokers who are entering the voluntary space often choose a one-stop-shop carrier that offers several products and enrollment as well. However, he says that if you want to differentiate yourself, then you have to become differentiated. You have to become comfortable with each individual aspect of voluntary benefits. Your product portfolio needs to include the best life insurance product, the best critical illness product, the best accident product, and so on – even if they come from different carriers.
You differentiate yourself by creating your own product portfolio of traditional and non-traditional voluntary products. According to Rockwell, the boom of the non-traditional voluntary category has added to the ability to differentiate yourself.
As a broker, when your portfolio includes non-traditional voluntary benefits such as identity theft protection, legal plans, pet insurance, student loan repayment plans, and an employee purchase program, then you are able to offer your clients a selection that can be tailored to their workforce’s diverse needs. Rockwell points out that it’s more common today for employers to offer three to six types of voluntary benefits and brokers with a deep portfolio are on their way to success.