As a small IFA, I have recently redirected my business towards the SME group market. I am finding clients are obsessed with the price alone. Should I make an effort to sell on the added value of these products, such as EAPs, or should I just concentrate on price?
Mark Beach, Creative Benefits
"We are looking to cut cost but retain the same benefit level," is a comment we all hear from our clients on a regular basis.
For some clients this may be the most suitable option, but there needs to be a consultative approach and the additional benefits almost every provider now offers need, at least, to be considered.
In the current economic climate, it is easy to see why companies are looking to save a few pounds while saving face with employees, but with a little thought, they can offer improved benefits which further enhance an employee benefit package.
What many employers now realise is that employees are starting to get restless.
Reduced or frozen salaries coupled with increased living costs are accepted in the short term, but how many employees are just waiting until the job market becomes more fluid before testing the water? By looking at a provider with additional benefits and helping effectively communicate to employees, an employer can offer staff the ability to retain control of their lives with an EAP or early intervention programme.
Group risk cannot be about price alone. We should be consulting with clients on the basis of reminding them of the reasons they implemented a benefit in the first place, then letting the benefit evolve and finding a reasonable excuse for an employer to blow their own trumpet and remind employees the value of the employee benefits they enjoy.
Ed Bryan, Ellipse
Important as price is, there are other factors that should be factored into the advice provided. It might be considered a ‘hygiene factor', but the provider's financial strength is always important, and likely to become more so in the current climate.
How prompt is the provider at delivering scheme documentation, including accounts? Is the member underwriting process simple for members to go through and does it operate on a ‘once and done' basis? Are claims handled quickly and sympathetically? The quality of service the provider offers will often be seen by the client as an aspect of the intermediary quality of service.
Ancillary benefits can make the difference for some clients - different providers offer counselling services, access to specialist medical experts, the option to extend cover to family members and so on.
In the case of group life, some companies offer a ‘master trust' facility that saves the client the time, expense and bother of setting up their own trust through the HMRC site.
