Are You Asking Your Broker the Right Question?

They used to do a lot on paper, too.

It’s been a week of windshield time for me as I’ve been all over the state with our business developer talking to prospective clients. Although it can be exhausting, I love getting out and seeing Louisiana – especially when the roadtrips call for extensive time on roads other than the interstates. The picture above is one I took on Highway 190 several years ago. We passed this store on our travels again this week and it looks significantly worse today.

While out on these appointments, I heard the same question several times from different plan sponsors. The question got me thinking about two things: obsolescence (like the store pictured above, and other withering buildings along Louisiana back roads) and whether employers are asking the right questions of their brokers. The question we got several times in some form: "can y’all handle our adds and terms?"

It’s a typical question and to be honest, this week’s meetings were not that different than most. Human resources professionals are (rightfully) looking to offload administrative work to their broker whenever possible. In general, what we’re talking about here is having the broker accept (via email or fax) new applications for coverage. From there the client expects the broker to process the enrollments with insurance carriers, and possibly even process the elections in other systems (such as payroll). Many brokers have made this type of administrative grunt work central to their value proposition.

I get the question and why it is important. But I can’t help thinking of the crumbling Country Store pictured above. At one time it was probably thriving – providing household staples to families for miles around. But I suspect that the store fell victim to the same market forces faced by retailers everywhere – technology is making it easier and easier to shop for consumer goods online and have them shipped right to your door. Why travel miles down Highway 190 for a limited selection of goods at the Country Store when you could shop the world at Amazon?

In today’s day and age, faxing insurance enrollment forms around between the employer, the broker, and insurance carriers seems just as obsolete. In general, for groups with over 50 employees, we can do all of this electronically these days. Even for groups under 50, there are solutions that can streamline the process. So it gets me wondering whether plan sponsors are asking the right questions of brokers. At all of our meetings this week, when asked the question about whether we can handle adds and terms, we responded by saying, “sure, but why do you want to do it that way anyway?”

The right question to ask the broker (in my opinion) is not whether they can handle adds and terms, but rather “what technology can you bring to us that will bring our processes into the 21st century so we’re not relying on a broker to do this?” Let’s face it, your employees are not only used to “buying stuff” online, they expect it. So not only can a technology solution help streamline the back office process, it gives your employees an experience that is less likely to cause frustration.

If you’ve read this blog regularly, you know that I think these types of services aren’t even the most important things you should expect from a broker. But that’s a story for another day. Want to hear more about how we can bring your enrollment process into the 21st century? Drop me a line at bayoubenefits@gmail.com