Insurance brokers looking to add value to their product offerings should consider providing HR support. HR deals with important matters like legal compliance and employee engagement, but many companies don’t have the in-house expertise to give these matters the attention they need. Inattention to HR is bad for business, so these companies look for outside HR support. And employers are often looking to their brokers for help finding the answers.

One reason HR support is an especially good fit for brokers is due to the increasing speed of health insurance law changes and the impact they have on employers. Since the passage of the ACA, the health insurance landscape has drastically changed, and with the new administration, we can expect these changes to continue. While health insurance laws have changed over time in the form of ERISA in the 70s, COBRA in the 80s, and HIPAA in the 90s, none of these laws, caused the upheaval created by the Affordable Care Act.

Prior to the ACA, a good health insurance broker needed the same skills as a good salesperson.  The most important abilities to be successful were communication and relationship building.  While both of those are still key, now a broker needs to understand the nuances of the ACA and related laws to stay competitive. Not only does a broker need to be able to navigate complex aspects of the law to ensure clients stay in compliance and avoid potential penalties, a good broker must also help the client take advantage of aspects of the law like small business health care tax credits, Marketplace health plans, and wellness incentives.  Brokers without intimate knowledge of the ACA, or at least the resources to provide this knowledge, are less valuable to prospects and current clients.

Brokers who can offer expertise on health insurance laws and other HR-related topics have a competitive advantage. While some organizations view their benefits broker as simply a salesperson who finds the company a good health plan and collects a commission, many organizations now seek a broker who provides a richer suite of services and expertise. Clients want their broker to be a key partner and advisor. They will often bring HR-related questions to their broker expecting the broker to have the answers. Brokers who can offer certified, up-to-date HR support in a clear, approachable manner are in a great position to meet this demand and stand above the crowd. Brokers who try to offer HR support on their own put themselves and their clients at risk.

In addition to the value of access to ACA knowledge and resources, many brokers find that having an HR offering helps them maintain long-term client relationships by making their services more “sticky.” Because HR is a rapidly expanding and developing field, clients who have access to quality HR resources quickly learn to rely on it. They like the service and don’t want to lose it, so they’re more inclined to stick with a broker who offers it. This “stickiness” gives brokers a better chance of maintaining long-term relationships with clients and provides an attractive offering to obtain new ones.

Guest post from HRAnswerLink

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