Virtually all independent agencies that write commercial insurance also offer workers compensation to clients. Since agents must collect relevant employee data to assist clients with workers comp, the question is: Why do some agencies pass up the opportunity for additional revenue—and the opportunity to further serve their clients—when it comes to offering group employee benefits?

Many agents do not realize that they already have much of the information needed to solicit quotes. The essential census items are each employee's date of birth, date of hire, compensation and gender. Why not ask the client for the information they need to quote both?

One of the biggest business stories of the past year has been a worker shortage that has led to supply chain disruptions resulting in lost revenues. Against this economic backdrop of a tight labor market and greater awareness of health risks following COVID-19, there has never been a better time for independent agents to engage their clients in a discussion about employee benefits.

Here's a logical way to start the conversation: “Workers comp provides income for your employees if they are unable to work because of a work-related injury or illness. But have you considered what your organization provides if an employee has an unexpected event like a premature death or disability that is unrelated to work?"

If the client's answer is “no" then the follow-up question is “why?" Generally, the client's response involves a concern about the costs or the administrative complexity. Also, small companies may think they're too small to qualify for group benefits or that they need to satisfy medical underwriting that could be awkward for some employees.

The agent is well positioned to respond. With the organization's census information, they can come back with group benefits recommendations that can range from the employer paying the entire cost to a cost-sharing approach with the employees. When agents review the proposal, most employers are surprised by the affordability.

Employers of virtually all sizes avoid individual underwriting, which can be advantageous to the employee even if they are sharing in the costs, particularly for disability insurance. Innovations in InsurTech now facilitate administrative tasks, such as enrollments and updates, through the use of a benefits portal, removing the administrative burden on human resources.

“Our company sees the independent agent channel as a strategic avenue in helping companies with their benefits needs," says Jim Wrage, national vice president, Principal Financial Group. “Our full portfolio of products positions us to offer solutions to employers of all sizes. Also, we have a dedicated field force covering all 50 states to help the independent agent from start to finish—quoting, implementing and ongoing service."

While medical insurance is foundational to protect financial assets, it does not provide for loss of income in the event of death or disability. Social Security is difficult to qualify for unless totally disabled for seven months or more, and it only pays $255 in the event of death. As a result, many workers do not have an adequate safety net to cushion the impact of an unforeseen event.

Employee benefits can provide tax advantages—$50,000 of employer-provided group term life insurance would be tax free for the employee and tax deductible as a business expense for the employer.

If you are not emphasizing writing employee benefits in your agency, it's a perfect time to incorporate them as a regular tactic in solving your clients' recruiting and retention needs. And it's always a good time to review the agency's benefits offering for the employees.

Dave Evans is a senior associate with insurance marketing firm Aartrijk, based in Fairfax, Virginia.