COLUMBUS, Ga., June 26, 2014 /PRNewswire/ -- Due to
uncertainty about the evolving health care landscape, brokers found
themselves at a crossroads of either redefining their role in the
industry or exiting it entirely. In fact, nearly half (49 percent)
of brokers at least somewhat agree that they've been considering
leaving the industry and 67 percent of brokers at least somewhat
agree that they've seen many of their peers exit the industry in
the past year according to the 2014 Aflac WorkForces Report for
Brokers. However, this new study released today by Aflac (NYSE:
AFL), the leading provider of voluntary insurance in the United States, shows that health care
reform is presenting new opportunities for those choosing to stay
in the business.
Conducted by Research Now on behalf of Aflac, the online survey
of more than 300 brokers found that more than one-third (36
percent) completely/strongly agree that health care legislation
represents an opportunity for them and their business and half (50
percent) say they completely/strongly agree that they have
confidence in their firm and the industry's future.
"It's encouraging that many brokers have a positive mindset
about their business and clearly see the opportunity in the
marketplace," said Tye Elliott, vice president of Core Broker Sales
at Aflac. "Many are adapting to the changing health care
environment by expanding their focus to be more consultative and to
offer a wider range of products and services. Our data shows that
this has been a successful strategy as many businesses are now
relying more heavily on their partners for guidance."
Brokers Are Needed Now More Than Ever
Despite many brokers exiting the industry, employers are relying
on experts more than ever to help them make smart benefits
decisions. In fact, employers have steadily increased their
use of brokers over the past three years, with year-over-year use
of brokers growing from 56 percent in 2011 to 61 percent in 2013 to
64 percent in 2014. Some of that increase could be related to
employers' lack of preparedness for health care reform. The Aflac
study found that:
- Nearly 8 in 10 (79 percent) brokers at least somewhat agree
that their clients aren't prepared for health care reform and
nearly one-third (31 percent) completely/strongly agree with that
statement.
- 27 percent of brokers named "client uncertainty about health
care reform" as the top issue for their firm right now.
- Almost half (45 percent) of companies will be relying more on
brokers or insurance providers to help make changes to benefits due
to the changing health care environment.
Growing Business Through Voluntary Insurance Benefits
Brokers are going beyond their usual product offerings and
taking advantage of new avenues to achieve success. In the next 12
months, about 4 in 10 (38 percent) brokers say the proportion of
voluntary insurance benefits they sell will increase, and 53
percent say they plan to increase their firm's revenue from
voluntary insurance benefits. Brokers who have leveraged this
strategy are seeing it pay off. The study showed:
Brokers who offer voluntary insurance benefits are 35 percent
more likely to have their client base increase over the past 12
months than those who don't offer voluntary insurance benefits. In
addition, brokers who offer voluntary insurance are 12 percent more
likely to be maintaining and/or growing sales, while brokers who
don't offer voluntary are more than twice as likely to have
declining sales.
These new products come as employers are shifting additional
health care costs to their employees who may not be ready to assume
that responsibility. The Aflac study found more than half of
companies (56 percent) increased employees' copayments and/or share
of premiums in 2013. To address this issue, brokers are encouraging
clients to consider offering voluntary benefits.
- 64 percent of brokerage firms say the reason they include
voluntary insurance benefits as part of their portfolio is to
satisfy the needs of their clients' employees.
- The majority of workers (63 percent) agree they see a growing
need for voluntary insurance benefits compared to previous
years.
Elliott adds, "The advantages of offering voluntary
insurance benefits can have far-reaching impact both for brokers
and for their client's workers. Considering almost half (42
percent) of American employees say they are not at all, or not very
prepared to pay out-of-pocket expenses associated with a serious
illness or injury, offering voluntary benefits gives workers a
meaningful safety net."
Developing New Services to Respond to Market
Realities
Not only are brokers achieving growth by increasing their
product offerings, they're also taking advantage of new revenue
opportunities created by health care reform and other changes to
the health insurance environment. Brokers are now creating
consulting practices, acting as navigators for insurance products
and helping clients purchase policies from both private and public
exchanges.
- 78 percent of brokers at least somewhat agree they have
expanded their consulting services, or created a consulting
practice, in the past year.
- More than one-third (35 percent) of brokers say they are now
functioning as a navigator for insurance products handled through
an exchange.
- 38 percent of brokers are currently functioning as a producer
for insurance products handled through an exchange.
To learn more about the current broker mindset revealed by the
2014 Aflac WorkForces Report for Brokers and access study data fact
sheets based on brokerage size, visit Aflac.com/brokerawr.
About the Study
The 2014 Aflac WorkForces Report was
conducted by Research Now on behalf of Aflac.
The Employer Survey was conducted online within the United States between January 7, 2014, and January 23, 2014, among 1,856 benefits
decision-makers. Results were representative of U.S. companies with
at least three employees, based on company size (number of
employees) and industry. No estimates of theoretical sampling error
can be calculated; a full methodology is available.
The Employee Survey was conducted online within the United States between January 7, 2014, and January 27, 2014, among 5,209 employed adults
ages 18 and older who are employed full or part time at a company
with three or more employees and not retired. The first 3,124
interviews were nationally representative, while the remaining
2,085 interviews were conducted among the top 20 DMAs – 100
interviews per DMA. Results were weighted as needed to match U.S.
demographics and to enable year over year trending. No theoretical
sampling error can be calculated; a full methodology is
available.
The Broker Survey was conducted online within the United States between January 8, 2014, and January 15, 2014, among 314 employed insurance
brokers and producers or financial advisors. Results are
representative of U.S. broker firms with at least three employees
serving companies of all sizes. No theoretical sampling error can
be calculated; a full methodology is available.
About Research Now
Research Now is the leading global
online sampling and online data collection company. With more than
6 million panelists in 38 countries worldwide, Research Now offers
a full suite of data collection services. For more information,
please visit researchnow.com.
About Aflac
When a policyholder gets sick or hurt,
Aflac pays cash benefits fast. For nearly six decades, Aflac
insurance policies have given policyholders the opportunity to
focus on recovery, not financial stress. In the United States, Aflac is the leading
provider of voluntary insurance at the worksite. In Japan, Aflac is the number one life insurance
company in terms of individual policies in force. Aflac individual
and group insurance products help provide protection to more than
50 million people worldwide. For eight consecutive years, Aflac has
been recognized by Ethisphere magazine as one of the World's Most
Ethical Companies. In 2014, FORTUNE magazine recognized Aflac as
one of the 100 Best Companies to Work For in America for the 16th
consecutive year. Also, in 2014, FORTUNE magazine included Aflac on
its list of Most Admired Companies for the 13th time, ranking the
company number one in the life and health insurance category. Aflac
Incorporated is a Fortune 500 company listed on the New York Stock
Exchange under the symbol AFL. To find out more about Aflac, visit
aflac.com or espanol.aflac.com.
Logo- http://photos.prnewswire.com/prnh/20100423/CL92305LOGO
Media contact – Kip Havel,
706.243.5543 or mediarelations@aflac.com
SOURCE Aflac