Agents – If you continue to do what you have always done, then expect to be replaced!

By Victoria J. Braden - President/CEO
Braden Benefit Strategies, Inc.

Published in Health Insurance Underwriter Magazine

April 2008 — If in the past you have shopped your groups, presented the company with alternative quotes, maybe even used spreadsheets and promised and delivered excellent service, you are obsolete.  That’s right, you are fast becoming a dinosaur in the new world of benefits.

Don’t miss this – don’t think it does not apply to you – don’t think your personal relationship with the account will retain the business – they won’t.

Why?  A reported half of small groups are discontinuing their group health insurance because they can no longer afford the cost.  For every 100 employees, companies are paying close to half a million dollars annually for health insurance coverage.  This is money that could be going directly to the bottom line.

What employers are looking for in today’s volatile market are answers.  Unless you come with answers, you are going to loose the business either to another agent or by exceeding the employers ability to pay.  The answer is not shopping the market, moving the group to the lowest carrier and holding your breath until the next renewal. 

Real answers involve long-term planning for real cost containment.  Unless you can present and deliver a three to five-year benefits plan, you are not offering real answers.  Research shows companies with long-term benefit plans have increases of 5% to 8%, as opposed to those who do not, with the annual increases or 15% or higher. 

It’s not like we (agents) don’t know what causes premiums to increase.  Insurance is not hard; it’s claims and administrative cost compared to premium collected.  We can’t control administrative costs so we have to look at claims. 

What is causing the claims in your accounts?  What types of educational programs or employer emphasis is needed to help minimize claims?  Remember this does not have to be expensive – most health insurance companies offer a variety of wellness related programs as part of the premium.  Are you working with your accounts and their employees to maximize the use of these programs?

What about plan design?  Are the majority of the employees you serve being over-insured?  Meaning they have very rich benefits but never go to the doctor?  Are the employees conscious of the cost of healthcare?  Are your employers delivering healthcare or health insurance? 

What plan design changes have you made recently that are not the routine increase deductible, increase doctor visit co-pays or increase prescription drug co-pays.  If you say none – you are going to be replaced.

Today’s health insurance market is about listening to your clients (both employers and employees) and creating programs that best meet both their long-term and short-term needs.  If you have not been taking this approach, looking for ways to help your employer attract and retain top talent by top benefits that may be a little out of the ordinary, then you deserve to be replaced.

It’s time to begin to think, to create, to help and to serve those we call clients.  If you are doing the same old same old, those of us who are not, who are leaving the ‘agent’ title behind and become ‘trusted advisors’ - consultants, are going to take your business – maybe not right away, but soon, very soon.

The really sad part is you know this stuff.  You can create the necessary benefit plans; you have the ability to answer your client’s needs.  You just are not doing it.  Why?  Yes, it takes more work.  Yes, it is different and not something that can be taught in a textbook.  Yes, you have to listen, think, create and act. 

If you cannot do this, get out now while your book of business is still worth something.  If you think I am kidding, how many clients have you lost in the past 12 months?  How many will you lose in the next 12 months?  You can wait for a wake-up call and watch your business slowly evaporate or you can be pro-active and give your clients what they want and deserve.  The choice is up to you!