COLUMBUS, Ga., Aug. 26, 2015 /PRNewswire/ -- After several
years of uncertainty about the effects health care reform would
have on their business, brokers' fears about the negative impact of
new legislation do not seem to have materialized. According to the
2015 Aflac WorkForces Report for Brokers released today by Aflac
(NYSE: AFL), the leading provider of voluntary insurance at the
work site in the United States,
more than half of brokers say they are confident about the future
of their firms and their industry, while 41 percent agree that
health care reform represents an opportunity for their business, up
14 percent from 2014.
"Now that health care reform is a reality, our survey shows that
brokers are showing an uptick in confidence, resulting in a drive
to find new opportunities in the industry," said Dan Lebish, executive vice president and chief
operating officer of Aflac Group Insurance. "Client and employee
needs are changing, and those brokers who recognize this are
discovering great success in pursuing new revenue streams that
address those evolving needs."
New outlook, new revenue stream
Brokers are thriving in their new environment. Thirty-nine
percent reported increases in their client base over the past 12
months, and 36 percent said their companies' sales/revenue grew in
the past year. But many are aiming even higher by adopting new
strategies and adjusting their target markets. More brokers than
ever before are now acting as navigators for insurance products,
considering setting up private exchanges for clients and expanding
their consulting services.
- Almost half (47 percent) of brokers say they are now
functioning as a navigator for insurance products handled through
an exchange.
- Fifty-two percent are currently functioning as a producer for
insurance products handled through an exchange.
- More than 75 percent at least somewhat agree they have expanded
consulting services or created a consulting practice in the past
year.
Brokers are also leaving behind outdated benefits packages and
including nontraditional product offerings to achieve success. A
recent poll by Gallup found that nearly 90 percent of American
adults have access to major medical insurance today,1
either through workplace plans or the health care marketplace, but
many are discovering that major medical insurance is merely a
foundation that is more effective when supplemented by
employer-sponsored policies. These types of voluntary policies,
such as accident insurance, help pay bills major medical insurance
was never intended to cover.
Sixty-four percent of employees see a growing need for voluntary
insurance today and brokers are taking notice.
- Close to 6 in 10 (58 percent) brokers plan to increase the
amount of voluntary benefits revenue at their firm in the next 12
months, a 9 percent increase over 2014.
- Forty-five percent think the proportion of voluntary benefits
sales will increase in the next 12 months, an 18 percent increase
over 2014.
In addition, the phrase "to satisfy the needs of clients'
employees" was the most frequently mentioned reason that brokers
gave for why their firm included voluntary benefits as part of
their portfolio. This was followed by "to remain competitive with
other broker firms" and "to offer broader benefits options to our
clients."
Clients still affected by the changes resulting from health
care reform
While health care reform isn't as overwhelming for brokers as
expected, many clients are still dealing with the effects. Almost 4
in 10 brokers said client uncertainty about health care reform is
one of the top-two issues facing their firms, an increase from the
previous year, when less than one-third shared that concern.
In response to health care reform, brokers cited the following
changes clients made most frequently to their benefits last
year:
- Twenty-seven percent moving toward more employee-paid
benefits.
- Fifteen percent moving to high-deductible health plans and
health savings accounts.
- Thirteen percent moving to a public exchange.
Lebish adds, "Changes to the way health care is purchased and
delivered in the U.S. remain on clients' minds, enabling brokers to
provide guidance to clients and strengthen their role as a trusted
advisor in an ever-changing landscape."
To learn more about the latest benefits trends, visit
AflacWorkForcesReport.com or follow @aflac on Twitter.
About the Aflac WorkForces Report
The 2015 Aflac
WorkForces Report is the fifth annual Aflac employee benefits study
examining benefit trends and attitudes. Conducted by Research Now
on behalf of Aflac, the research contained two components –
employer research and employee research.
The Employer Survey was conducted online within the United States between Jan. 26, 2015, and Feb.
11, 2015, among 1,977 benefits decision-makers at companies
with at least three employees. 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 Jan. 23, 2015, and Feb.
11, 2015, among 5,337 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 3,076 interviews were
nationally representative and were weighted as needed to match U.S.
demographics and to enable year-over-year trending, while the
remaining 2,261 interviews were conducted among the top 20 U.S.
DMAs — approximately 100 interviews per DMA. No theoretical
sampling error can be calculated; a full methodology is
available.
The Broker Survey was conducted online within the United States between Jan. 20, 2015, and Feb.
10, 2015, among 306 insurance brokers or producers employed
at a company with three or more employees. No theoretical sampling
error can be calculated; a full methodology is available.
To learn more about the Aflac WorkForces Report, visit
AflacWorkForcesReport.com.
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 work site. Through its
trailblazing One Day PaySM initiative, Aflac U.S. can
receive, process, approve and disburse payment for eligible claims
in one business day. In Japan,
Aflac is the leading provider of medical and cancer insurance and
insures 1 in 4 households. Aflac individual and group insurance
products help provide protection to more than 50 million people
worldwide. For nine consecutive years, Aflac has been recognized by
Ethisphere magazine as one of the World's Most Ethical Companies.
In 2015, Fortune magazine recognized Aflac as one of the 100 Best
Companies to Work For in America for the 17th consecutive year.
Also, in 2015, Fortune magazine included Aflac on its list of Most
Admired Companies for the 14th time, ranking the company No. 1 in
innovation for the insurance, life and health 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 and One
Day PaySM, visit aflac.com or espanol.aflac.com.
1 Gallup, "In U.S., Uninsured Rate Dips to 11.9% in
First Quarter," accessed on Aug. 17,
2015 -
http://www.gallup.com/poll/182348/uninsured-rate-dips-first-quarter.aspx?utm_source=Well-Being&utm_medium=newsfeed&utm_campaign=tiles
Media contact – Darcy Brito,
706.320.2358 or dbrito@aflac.com
Analyst and investor contact – Robin Y.
Wilkey, 706.596.3264 or 800.235.2667, FAX: 706.324.6330, or
rwilkey@aflac.com
Logo -
http://photos.prnewswire.com/prnh/20100423/CL92305LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/new-survey-paints-a-picture-of-the-21st-century-broker-300133055.html
SOURCE Aflac