How P/C Agents Can Increase Sales through Employee Benefits

Broaden Your Agency’s Reach Through Education and Marketing

In today’s still challenging economic environment, employees are increasingly looking at employee benefits as a way to strengthen their personal financial safety net. Nearly nine in 10 employees (87 percent) planned to maintain or increase the number of benefits they selected and/or their coverage during last year’s open enrollment season, according to recent MetLife research. This is despite the fact that over one-third (37 percent) of all employees said their household’s discretionary income decreased in 2009.

Given that many employers’ top two benefits objectives are controlling costs and retaining employees, many employers are now looking to voluntary benefits as a cost-effective way to enhance their current benefits program. Voluntary benefits allow employees the opportunity to purchase products that meet a variety of needs, often at attractive rates.

There’s a significant opportunity for property/casualty agents to take advantage of this growing need by tapping into strong existing relationships with clients who may be in need of employee benefit solutions for their businesses. By doing so, P/C agents can increase their own book of business by cross-selling group products available through the carriers they work with. It’s important to note that employee benefits aren’t the only solution that P/C agents can offer clients — life insurance, long-term care, financial services products and annuities can be offered.

Through existing relationships with business owners, human resources and risk management professionals, agents have a tremendous advantage. A P/C agent who is already a trusted advisor to clients can be a welcome source of information on business issues and personal finance matters. Armed with the right education, licensing, and tools, P/C agents are well-positioned to provide this additional level of service to valued clients.

Although many independent P/C agents will see the benefit of offering life insurance, financial services products and benefits solutions to clients, actually doing so may seem challenging because these products aren’t typically in their bailiwick. However, with proper training and education, agents can quickly develop a comfort level with moving the conversation from property/casualty into other areas.

There are three simple steps that P/C agents can take to broaden their reach.

Education

P/C agents interested in selling non-P/C products to clients should work directly with carriers to obtain the necessary training and education needed to feel comfortable discussing these products with clients. Licensing requirements, which vary by state, need to be researched and complied with, or the agency needs to partner with a licensed life representative in a manner compliant with state law.

Most carriers who offer employee benefits, life insurance and other products have developed strong training programs designed to educate agents who sell its products on the range of products available, and to provide the tools they need to make the sale. Some carriers also provide one-on-one support and training.

Understand Plan Design

By working one-on-one with a carrier, independent or affiliated P/C agents can gain access to a significant amount of information on employee benefit trends and employees’ current needs and desires. This can prove to be invaluable when it comes to sitting down with current clients and initiating a conversation based on the attributes and desires of a specific employee population. By tailoring the product offerings to the specific needs of employees, these programs have the potential to significantly increase employee retention. According to MetLife’s Seventh Annual Employee Benefits Trends Study, 69 percent of employees say that non-health benefits (life, dental, disability, vision, etc) play a strong role in workplace loyalty.

Create a Marketing Plan

Finally, agents should work with clients to create a marketing plan to present to employees so they can learn about the benefits being offered, and make choices that meet their needs. These marketing plans are far less cumbersome today than they were in the pre-automation era.

Cross-selling non-P/C products to current personal lines clients in need of benefits solutions in the workplace is a natural step for independent agents. But the opportunities for cross-selling don’t stop with voluntary benefits. Agents should also consider talking to clients about banking products, such as CDs, money market accounts and IRAs, if they have a relationship with a company that offers these financial products.

Offering employee benefits and retail life products is a tremendous way to help a P/C agency grow its customer base. By expanding beyond the traditional personal and commercial lines product portfolio, agents will create a number of opportunities for themselves, which can have a big impact on an agency’s bottom line, including improved personal and commercial lines client retention, incremental revenue, and additional opportunities to prospect for new P/C customers.

Topics Trends Agencies Training Development Property Casualty