I am honored to be invited to contribute in the June 2020 issue of the IA Magazine, providing insights through an article on group health insurance for SMEs. For the full publication, visit IA June Edition.
Independent Agent (IA) is the authoritative source of information for professionals who sell insurance for independent agencies. IA Magazine primarily serves property-casualty independent insurance agents and brokers and is a benefit of membership of the Independent Insurance Agents & Brokers of America. IA gives independent insurance agents access to the critical trends, analysis and tools they need to sell efficiently and effectively. IA offers an unparalleled combination of research, experts and analysis to help lead agencies to profitability and competitive strength.
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Working with small businesses to offer group health insurance
As small and medium-sized enterprises (SME) face the challenge of recruiting and retaining quality employees, benefits packages are critical to convince successful employees to stay in one place. This makes it an area where agents can open the door to additional opportunities and long-lasting relationships.
My business is located in Metropolitan Manila, Philippines, where health care is expensive. A substantial amount of the population cannot afford individual health care policies and depend on their employer for coverage. In the past, an employer health care plan was a nice perk, but now the country has grown closer to the American model. Most employers offer some health insurance, so a good policy is one of the most significant factors for employees when they look for jobs.
This new reality has upended the traditional Filipino model of selling group insurance plans. Under this model, clients receive a host of options and are left to choose for themselves, which is extremely time consuming. However, through my platform, Bridges-PH, I am among a group of pioneer agents taking the time to make custom group health insurance recommendations for SME owners.
As of 2019, small businesses employed nearly half the U.S. workforce, according to the U.S. Small Business Administration Office of Advocacy. This creates enormous potential for group health sales.
When speaking with SME prospects about group health care, I make sure to ask comprehensive questions about their business outlook and their anticipated needs over the next several years. I also discuss the need for better employee benefits to increase retention and decrease hiring and training costs. Then, instead of presenting a binder of health care plans, I do the research myself and present a smaller number of options tailored to the prospect’s circumstances.
For prospects, it’s the difference between being presented with a buffet and having a server pick out the best-sounding menu options. These preliminary conversations usually save time in the long run and establish me as an expert who genuinely cares for their business.
The plans I present are shaped in a way that also helps them retain employees, both because of the customization and because my primary broker provides key perks not yet common in the Philippines. For American agents, finding plans that offer extra incentives could serve the same purpose.
While health insurance is often a client or prospect’s first ask, the relationships I solidify through the research and customization process often allow me to pitch other employee benefits down the road, including individual life insurance, retirement accounts and financial planning meetings.
These opportunities, paired with income from policy renewals and individual employee sign-ups, provide a solid and dependable stream of income that allows me to look to the future with optimism.
linkiNG you to opportunities,
