Cliff's Insights Playbook # 10: Using Retirement Plan Metrics to Sell Group Insurance Products

Strategy A: Broker or Carrier Is Retirement Provider but Does Not Have Group Insurance

If you are a retirement provider that also offers group insurance benefits, cross-selling to in-force customers can generate warm leads based on existing relationships.

Research shows that few firms have effectively implemented retirement/group benefits cross-sell strategies due to challenges such as:

• Siloed organizations

• Specialized sales teams

• Different sales territories

• Inconsistent employer data across platforms

• Lack of communication/coordination across organizations

• Ineffective use of third-party intelligence (e.g., 5500-based data)

Benefeature allows users to identify current common customers across platforms and, more importantly, those customers who have one product line but not another.

Strategy B: High Retirement Participant Loan Activity

Employers with high participant retirement loan activity, reported via 5500 filings, may indicate employees using retirement funds for unexpected medical expenses. Often, employers are unaware of this trend.

Proposing supplemental health products can mitigate the necessity and frequency of these loans, addressing a specific and immediate need while driving higher initial participation and future persistency.

Benefeature’s integrated retirement and group insurance 5500 reporting makes it easy to identify employers with higher employee loan activity but no supplemental health offerings.

Strategy C: Low Retirement Participation Rate

A well-run 401(k) plan is critical for attracting and retaining employees. Low participation rates can indicate insufficient education or communication about the value of the benefits package, including group insurance. It may also suggest a low employer retirement match, which can reflect the employer’s overall benefits spending strategy.

Benefeature tracks retirement participation rates and employer match rates, helping users identify situations where improved employee education and tailored group insurance plans could provide value.

Strategy D: Large Number of Retiree Participants

Employers with a significant number of retirees still receiving benefits from the retirement plan may benefit from alternate investment strategies.

These employers might be paying administrative costs for retirees and could benefit from transitioning retirees out of the current plan. Advisors can assist by rolling retirees’ funds into IRAs or annuity products.

Benefeature segments participant data, including retirees, allowing brokers or carriers to develop precise marketing strategies targeting employers with higher-than-average retiree participation.

Step-By-Step Benefeature Instructions

With Benefeature, you can confidently access information and prepare a cross-sell strategy to proactively identify opportunities. Leveraging this robust business intelligence enables you to approach warm leads with objective facts and data while avoiding conflicts with pre-existing relationships.

Steps:

1. Log on to Benefeature.

2. Expand the “Insurance Plans” box on the left of the screen by selecting “Add a Plan.”

3. Expand the “Retirement Plans” box by selecting “Add a Plan.”

4. Reference the marketing strategy above to identify opportunities.

What's Next?

Use It!

If your sales teams have access to Benefeature and clear direction from leadership to explore new revenue sources, following these proven strategies can unlock powerful insights and drive significant growth.

Share Your Success!

We’re here to support your success! Let us know what’s working and share any feedback - whether it’s specific strategies, metrics, or challenges. Our team is also available for one-on-one sessions to help fine-tune your approach. Email us at hello@benefeature.com or call at (207) 618 - 8792.

For additional marketing ideas, visit the “Articles” section on Benefeature to explore all 10 published playbooks and actionable insights for the group benefits industry.

Cliff Murch has spent his career working closely with the sales, marketing, underwriting, and finance organizations of several large group insurance and retirement carriers designing and implementing business and broker intelligence capabilities, traveling across the country meeting with sales teams and broker partners; these proven capabilities have been employed to generate millions of dollars of sales revenue. He has recently founded and now offers consulting services related to these marketing and sales strategies to insurance carriers as well as brokerage firms of all sizes through his consulting firm Insight 360, LLC.