Zywave, a leading insurtech provider, has released the results from its 2023 Broker Services Survey. This regular survey of employers provides valuable insight into the constantly evolving broker-client relationship and reveals what businesses across the country are asking of their brokers. Zywave has been producing the Broker Services Survey for over 10 years.
Some of this year’s key findings remain consistent with previous results, with employee attraction and retention, compliance and technology playing important roles in the industry. One standout trend that emerged from this year’s results is the increase in employer expectations for their insurance broker.
“Insurance brokers face high expectations from clients and that has shown no signs of slowing down. In fact, they expect more services and guidance than ever before,” said Patrick Noonan, vice president of content development for Zywave. “As the industry transforms, so do the needs of brokers’ customers. The purpose of our survey is to help brokers identify what’s most important to their clients so they can prioritize the services they are providing and address their clients’ most pressing business challenges.”
Which Broker Services are Most Valued?
The two biggest changes in this edition of the survey are the dramatic rise in the value placed on brokers who offer products and services tailored to meet organizational needs and the increase in employers wanting even more interaction with their brokers. Brokers who are not communicating with their clients on a daily or, at a minimum, weekly basis are at risk of being replaced by more proactive competitors.
Key stats regarding what employers look for when selecting a broker include:
· 64% want prompt and effective service and timely answers to questions
· 56% seek a broker that offers tailored products and services
· 53% of employers want a trusted advisor, rather than an insurance salesperson
· 49% want a broker or organization with a good reputation
· 49% expect regular communication from their broker
· 48% want competitive pricing
What Are Clients’ Biggest Business Challenges?
Each year, the survey asks employers to name their top business challenges. While some of these findings remain consistent, some are in need of a sharper focus. Brokers who can deliver practical guidance, help clients navigate the hard insurance market, and assist clients through operational and risk management challenges will be able to further distinguish themselves from their competitors moving forward.
When asked to select their top three employee benefits challenges, participants identified the following:
1. Offering a competitive benefits package
2. Attracting and retaining employees
3. Mitigating health care costs
When asked to select their top three commercial challenges, participants identified the following:
1. Rising cost of commercial insurance premiums
2. Finding available commercial insurance coverage
3. Understanding insurance terminology
With so many important roles to play and complex issues to consider, it is understandable that brokers are feeling the pressure to keep up with their clients’ expectations. “Given the many demands being placed on brokers, it’s important to take action in a way that is impactful, yet realistic,” Noonan adds. “By increasing proactive communications on the subjects their clients crave, brokers can continue to prove their value and position as a trusted advisor.”
Download the full 2023 Broker Services Survey here.
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