News
Minnesota Life study shows benefits brokers want good service, not free lunches
St. Paul, MN, November 30, 2005 — A study of insurance brokers and consultants' attitudes about relationships with group life insurers shows they place high value on good service and little value on freebies.
"The study confirmed our assumptions about how best to approach benefits brokers and consultants,” said Paula Bilitz, Marketing Director for Minnesota Life Group Insurance. "Professionalism rules, with a clear focus on how best to serve the employer-client.”
For the study, 30 employee benefits brokers and consultants were interviewed nationwide. A report available here summarizes the qualitative results and lists several conclusions about what these "intermediaries” look for in group life insurance carriers.
- Carriers must be service-oriented. For the intermediaries and their clients, "excellent service” means quick responses to phone calls and emails, quick answers to questions, fast resolution of problems, on-time delivery of materials, and user-friendly technology.
- Carriers must be financially strong, meaning they are A-rated or better by A.M. Best, Standard & Poor's, or Moody's.
- Intermediaries might enjoy an occasional lunch with a carrier's rep, but far more important is the carrier's ability to meet the client's needs. Without fulfilling this requirement, a carrier isn't going to win or keep business. Intermediaries discourage dinners, golf outings, sporting events, or trips for a number of reasons -- they don't have the time or interest, they don't want to feel obligated to a carrier, they don't want the appearance of impropriety, or they are prohibited by company policy from accepting such perks.
- Technology is important to intermediaries and their clients. Clients reportedly "want to do everything on-line,” and intermediaries would like the same, or similar, access to provide better service to their clients. Forms, certificates, contracts, case management reports, employee booklets, and billing should be on-line in a user-friendly format.
The study shows that rates, service, financial ratings, and reputation are among the factors that affect the group insurance carriers' standing with benefits brokers and consultants. Results also suggested that while competitive rates help win business, poor service will certainly lose it.
"We're serious about providing best in class service to brokers and consultants,” said Bilitz. "We used the results of the survey to reinforce the approaches that are clearly our strengths – such as online self-service – and to identify areas where we can develop new competencies.”
Minnesota Life has been in the group life insurance business nearly 90 years and is one of the fastest-growing. It was the nation's sixteenth largest group life insurer in 1997 and rose to sixth in 2004 with nearly $347 billion of group coverage in force. Customer surveys show that 99 per cent of clients are satisfied or very satisfied with the service they receive from Minnesota Life, a subsidiary of Securian Financial Group. For more information about web-based services offered by Minnesota Life Group Insurance, visit www.lifebenefits.com/lb/home.html.Contact:
Maggie Jensen, APR
Media Relations Consultant
Minnesota Life Insurance Company
Phone: (651) 665-7558
Pager: (612) 650-0433
400 Robert Street North
St. Paul, MN 55101-2098
margaret.jensen@securian.com
