Ken Doyle, Market Strategist for Amwins Connect, offers insights on today’s ancillary benefits space.
Why Should Brokers Sell Ancillary Benefits?
Having multiple lines of coverage increases group retention and employee satisfaction. For example, employees appreciate dental insurance. In fact, it’s the second most requested line of benefits coverage. Also, many third and fourth lines can be added with little to no additional monthly cost. In addition, offering ancillary benefits helps you close the back door on competition from another broker.
What’s More Popular These Days – Voluntary or Employee-Paid Benefits?
It depends on the group size. For employer-sponsored benefits, 10+ groups are still way out in front. They see offering these benefits as an important strategy in attracting and retaining top-level employees.
Voluntary is really starting to pick up in the under 10 employee space, especially since the 2020 market shift. Voluntary allows for employers to offer group structured benefits at a very reasonable price to employees. I see more and more brokers bringing voluntary into their strategy.
What Are Some Effective Selling Strategies for Ancillary Benefits?
First and foremost, always quote ancillary alongside the medical RFP. Employees are attracted to ancillary since usage is typically higher and/or more frequent. I guarantee that you will (or should) see the dentist more often than the physician since you need teeth cleanings two to three times a year. There is also the recommended yearly vision check-up. As a result of the pandemic, stress is high, which increases the demand for chiropractic and acupuncture benefits.
What aspects of CoPower Especially Resonate With Employer Groups?
Employers love how easy it is to administer benefits from CoPower. For multiple lines of coverage, they get just one census, one application, one blended rate, one bill, and one point of contact.
They also appreciate having the choice of stand-alone or mix and match plans from an elite portfolio of carriers:
- Dental & Vision ˗ Delta Dental, VSP
- Chiropractic & Acupuncture ˗ Landmark Healthplan
- Life Insurance & Disability ˗ Unum
For an added selling point, mention the free and discounted services from CoPower Vantage including HR assistance, online benefits admin, employee discounts, and RX savings.