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Economy Prompts Shifts in Benefits Market

August 2008 - 2008 Benefits Selling Guide
Written by Christina Pellett, Managing Editor

Agent Media, MI2 survey identifies key challenges, employer concerns in the workplace

Rising costs and a soft economy have impacted bottom lines everywhere - and the workplace is no exception, according to the recent Benefits Market Study by Agent Media* and MI2.

While individual sales in some markets may be slumping, health and life insurance in particular remain core benefits at most worksites. Employers, however, are still searching for ways to stabilize their contributions with more employee sharing and high-deductible health plans tied to consumer-driven health plans.

"The market is totally different from five years ago," said Pam Delaney, corporate vice president of health and executive benefit sales for MassMutual.

"There's a lot less money. Folks want to make sure they're getting the best talent and the best people, but how do they offer their employees and executives a package and benefits that provide little to no cost to them as the employer?"

This shift requires a different approach from agents - one that's tailored to servicing and providing solutions to the issues business owners face.

Read more to view the complete results of Agent Media and MI2's 2008 Benefits Market Study, along with tips and comments from experts for surviving in this competitive marketplace.

Excerpt: "As for cost perception, Dave Parker, senior vice president of sales with Meritain Health, said few producers are bringing solutions to employers, instead merely maintaining the status quo and acting as "me-too" salespeople.

A more refined approach is necessary when approaching clients who are gun shy about so-called expensive benefits plans and concerned with maintaining stable costs. And with so many agents facing clients who are shopping around annually, a huge opportunity awaits those who work hard at becoming a solutions-oriented producer rather than a product pusher, Parker said.

Prospecting is another common challenge, he said, and one that can be coupled with cost.

"If you save a client money or do something extremely good for them, they're your reference," Parker said. "Get out of the "same old, same old" routine. Clients are comfortable with relationships, so you do have to separate yourself and show why you're different."