Stay out in front

It’s a new dance, but you already know the steps

Healthcare reform offers a few sobering facts for brokers. The 80 percent minimum medical loss ratio will squeeze commissions, and advances now are a thing of the past, while the workload is as high as it’s ever been. New sales distribution channels including federally mandated state exchanges and private exchanges provide consumers with new choices that may or may not include a broker. Renewals and new sales will be more complicated as consumers take a closer look at insurance, many for the first time.

But in no way is the news all grim. The individual marketplace has increased by 80 percent over the past six years and will only continue to grow, as the individual mandate sends some 30 million Americans to the market as first-time buyers who need help navigating their options. Indeed, brokers bring expert knowledge to a confused marketplace and serve as valued advisors, which is why a 2007 IBM study found that consumers prefer working with brokers.

So what are some ways to not only survive but also thrive post-reform? Use technology as your partner. People continue to go online to access information in increasing numbers, and you can be their resource. Efficiency is key here because to quote the same product on multiple carrier sites only increases your costs. Take advantage of underwriting intelligence within a platform that shortens the sales cycle time and minimizes administrative costs. And don’t forget ancillary products. Reform only governs health insurance, so these other lines provide valuable opportunities to cross/up-sell products that may be more profitable. As suggested above, it’s time to capitalize on the booming Individual Market. The ability to act as educator and advisor is your ace in the hole because customer service and ongoing relationships allow you to differentiate.

We’re here to help you through this time. Connecture has a reform team dedicated solely to navigating the requirements and keeping our products up to date, and we make sure that our technology gives you the tools you need to thrive. The opportunity is there.