Partnership
How one Employee Benefit Firm solved income replacement gaps for their Employer clients, while generating $235,800 of additional revenue:
The two biggest challenges most Employee Benefit Firms face when it comes to providing a full suite of benefit solutions are shelf space, and specialization. And we have all heard the phrase “Jack of all trades; Master of none” …
Most Employee Benefit Firms dedicate their focus to and specialize in health insurance. Incidentally, ancillary benefits such as Group Disability and Group Life, do not get the complete attention they deserve at time of renewal. Gaps in definitions, plan design, and coverage limits over time can go unchecked. And rightfully so. Health Insurance is both one of the biggest budgetary items for Employers, and one of the highest revenue generators for the Employee Benefit Firm.
Then comes the “specialty benefit” programs. With ancillary benefits already falling in the shadow of health insurance, the “specialty benefits” are often not even on the radar. Specialty Benefits include Executive Supplemental Disability Insurance, Voluntary Supplemental Disability Insurance, Executive Supplemental Life Insurance, Voluntary Worksite Benefits, and Long-Term Care Insurance. These specialty benefits are the products that can truly enhance an employer’s benefit package, while addressing real shortfalls and gaps that exist in ancillary benefits.
Further, the specialty benefits can be an excellent source of additional revenue for an Employee Benefit Firm.
This Employee Benefit Firm recognized the importance of providing best in class solutions for their clients; but also acknowledged the lack of shelf-space to focus on anything other than Health Insurance and ancillary benefits. In the past, this Firm had experimented with offering Executive Supplemental Disability Insurance on their own, unsuccessfully. The Firm’s close ratio was not particularly good, to say the least. The combination of shelf-space challenges, and more importantly the lack of expertise - or specialization - in Executive Supplemental Disability Insurance, were the culprits. It certainly was not the lack of effort or desire to do their best for their Employer clients…
This Firm also recognized the need to find new sources of revenue but was not able to invest in creating a “Executive Benefits Division.” To do so would be an expensive proposition, with no guarantee of a solid ROI.
Recognizing the power of partnership, the need to better serve their employer clients, and the opportunity to generate additional revenue, the Firm partnered with Navis Benefits Group, LLC, on a revenue sharing basis.
Early results have shown a strong close ratio, with the Firm generating $76,800 of new first year revenue in 2022 from Executive Supplemental Disability Insurance sales. This business will also produce a revenue stream via vested renewal commissions, of $159,000, over the following 9 years. The total projected commissions earned over the 10-year period for this new business is at $235,800.
The Firm was able to generate this additional revenue stream with no out-of-pocket expenses, and with minimal effort.
The Executive Supplemental Disability Insurance allowed the Firm to address income replacement gaps that existed for their Employer clients’ highly compensated Executives, which Group LTD alone could not protect.
This Firm’s willingness to bring alternative and creative solutions to their customers, their humbleness in recognizing they had not been successful trying it alone; and the recognition that there is power in partnership has resulted in a solid source of additional revenue, with minimal time and no financial investment.
Consider partnering with Navis Benefits Group, to provide better benefit solutions with Specialty Benefits, generate additional revenue, with minimal effort or investment. Navis Benefits Group, LLC helps the “Jack of all Trades” provide “masterful solutions” to their clients.
