May 10, 2024
by Tim Falanga. Senior Vice President of Sales, East Region
Looking for ways to get your foot in the door with new businesses? Instead of going for the high dollar medical coverage, here’s an idea – ask your prospective or existing clients with only medical coverage if you can quote ancillary products like life insurance, vision, dental, as well as short-term and long-term disability coverage. They are less expensive – generally about 3%-5% of the total benefit dollar spend – and some of that cost can be assumed by employees by offering voluntary benefits at group rates.
Ancillary Coverage: A Key Differentiator
Comprehensive group insurance plans with ancillary benefits are particularly advantageous for businesses seeking to provide a comprehensive package to their employees. By offering a policy that includes medical insurance along with group ancillary products, employers can enhance their attractiveness to potential hires and improve employee retention rates. Open your client’s eyes with innovative approaches and bring to light nuances for their consideration. Start small and work your way into the bigger sale, earning trust and building the relationship along the way.
Look Under the Hood
Let’s explore further how you can harness the potential of ancillary products to boost health insurance sales and drive business growth. Look under the hood with potential clients to explore nuances that will win their confidence and increase your credibility.
The Power of Ancillary Products
Ancillary products play a crucial role in complementing health insurance coverage. While medical insurance remains a cornerstone of financial security, ancillary products offer additional layers of protection, catering to a variety of needs and preferences. By diversifying your offerings, you can appeal to a wider audience and provide comprehensive solutions tailored to individual and group requirements. For employees that waive medical coverage because they have coverage elsewhere, ancillary benefit offerings can give them access to other benefits at a group rate that may be appealing.
Attracting Potential Clients with Ancillary Products
As mentioned, a remarkably effective strategy for insurance brokers is to use less expensive ancillary products as a foot in the door, or to expand offerings for an existing client. By starting conversations with prospects about ancillary products, such as vision or dental coverage, you can establish rapport and build trust with clients before introducing more comprehensive and higher-priced offerings like medical health insurance. Think of it as building a bridge. This approach allows you to showcase your expertise and understanding of client needs while gradually expanding the scope of the conversation to encompass broader insurance solutions. It can also lead to referrals when your client recognizes your value and wants to share with other business owners. You are planting seeds for future harvesting!
Building Relationships and Cross-Selling Opportunities
Engaging clients through ancillary products not only facilitates initial sales but also opens doors to cross-selling opportunities. Once you establish a relationship and demonstrate value through ancillary offerings, you can seamlessly introduce additional coverages such as medical insurance, supplemental plans like Accident, Critical Illness, Hospital Indemnity, Employee Assistance Programs, or financial offerings, such as retirement savings products. This approach capitalizes on existing client trust and positions you as a trusted advisor capable of addressing diverse insurance needs comprehensively. Going the extra mile can pay off for both of you!
The Takeaway
We know that in the dynamic landscape of insurance sales, brokers must continually innovate and adapt their strategies to meet evolving client demands. Ancillary coverage presents a compelling opportunity for you to attract new clients and drive business growth. By emphasizing the benefits of group insurance, reaching potential clients through ancillary offerings, and capitalizing on cross-selling opportunities, you can position yourself for success in this volatile and highly competitive health insurance market.
Amwins Connect is here to help you! Reach out to your Amwins Connect Sales Representative to refresh your knowledge of ancillary products and other creative ways to grow your business. Your Amwins Connect Sales Rep can assist you with finding the best ancillary solutions for your clients.
