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During the COVID-19 pandemic, insurance brokers have been on thefrontlines of constant policy changes, never-ending open enrollmentperiods, and more. Matt Donaldson, head of channel at Rippling,recently shared his thoughts on the challenges brokers are facingand how they can prepare for the changing benefits environment.
|What challenges are insurance brokers facing duringCOVID-19?
Social distancing has taken away one of the big advantagesbrokers have over digital competitors — the personal connection ofdoing business in-person. We work with more than 100 brokers acrossthe country, and they tell us they're having to find new ways toprove the value of the relationship model without live events andclient meetings.
|At the same time, brokers have been in the trenches with theirclients, fielding questions on everything from new federallymandated sick-leave to whether their health care plan coversemployees and dependents who need treatment for COVID-19. It's puta lot of strain on their systems and staff.
|Digital brokers have threatened the traditional model over thelast several years. Have brokers been able to keep up?
Right now it's not a fair fight. Digital players have much lessoverhead because they can automate core processes. Meanwhile,brokers are stuck doing time-consuming paperwork that cuts intotheir margins, especially for small-group insurance.
|The good news is brokers now have their own digital tools tochoose from and adoption rates are going up. The bad news isthey're still behind the curve. Their customers expect seamless,all-in-one solutions for payroll, benefits, and onboarding —brokers only offer the benefits piece.
|How is the benefits environment changing in the age of COVID-19— and what can brokers do to prepare?
COVID-19 is changing how companies manage insurance — they'reshopping around with cost and plan design in mind, and they'reusing digital channels to do it. Remote work is here to stay, andso is managing insurance online.
|As unemployment stays high and employee bases shrink, brokersare taking in less revenue. But despite the economic pressure, thisis a moment when brokers can shine and prove their value as trustedadvisors — if they adapt.
|A recent Oliver Wyman analysis recommended that brokers "reviewdigital capabilities and consider partnering with insurtechs tosource leads and process applications." In other words, usetechnology both to automate backend work and open up new ways ofwinning business. This is the time clients need them the most, soembrace tools to reach them remotely.
|How does Rippling partner with brokers?
We launched our broker platform nine months ago, and Ripplinghas already helped brokers across the country earn over $3 millionin commissions. Our goal is to give brokers all the advantages andefficiencies of a digital brokerage so they can finally competehead-to-head — and win. For starters, brokers can land customersthey couldn't before who want an easy, all-in-one HR solution.
|We also automate a lot of the manual paperwork and processesthat suck up brokers' time and margins. Free tools like instantquoting and end-to-end carrier fulfillment reduce their operationalcosts and boost their bottom lines, so they can get back to doingwhat they do best.
|How does technology ultimately benefit brokers and theircustomers?
Eight years ago, you couldn't sign up for health insuranceonline — it was still paper and fax. Insuretech is less than adecade old, and it's already transformed our expectations of buyingand managing insurance.
|Technology has redefined the role of the broker, but it's notthe boogeyman some feared. In fact, today most brokers areembracing tech because they've seen how much time and money it cansave them and their clients. For employees, it makes their lives alot easier and gives them more visibility and control over theirbenefits. They don't have to fill out endless forms anymore, andit's easy to access and update their information online if theymove addresses, get married, etc.
|Software can also help brokerages stay compliant by default. Forexample, tools like AgentSync ensure that brokers are properlylicensed before they close deals.
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Emily Payne
Emily Payne is director, content analytics for ALM's Business & Finance Markets and former managing editor for BenefitsPRO. A Wisconsin native, she has spent the past decade writing and editing for various athletic and fitness publications. She holds an English degree and Business certificate from the University of Wisconsin.
