The market is there. Statistics show that more and more employers are looking to voluntary benefits market sold through worksite distribution to fill gaps created by their health care cost management efforts.

Yet many traditional group health advisers continue to sniff at the mention of worksite sales and marketing. Experts, who either never experienced or have overcome such reluctance, agree that modern benefits advisers would be wise to embrace the movement or face irrelevance. Health advisers ready to do so should take note - worksite sales require a much different approach than group medical.

Research shows that not only is there a broad shift to worksite underway in the employer market, but now is an especially opportune time for brokers to join the ranks. LIMRA reports that worksite sales increased 12% during the second quarter of 2007. That's the fourth consecutive quarter of double-digit growth as reported by the thirty-two carriers that comprise LIMRA's worksite survey. The growth is being driven by voluntary health offerings.

Ron Neyer, LIMRA's senior research analyst for worksite also points to the thousands of employers who indicate their interest in adding voluntary benefits. LIMRA conservatively estimates that 154,000 firms with 10 or more workers will introduce a new voluntary plan within the next two years. Its liberal projection calls for 363,000 firms to do so.

"It's up to the industry to convert these prospects into customers," he says.

So why haven't they? One reason may be arrogance.

Phillip Vance, director of special markets for Bankers Fidelity Life, says it's no time for health advisers to be haughty. Not only is there money to made, but also advisers have an ethical requirement to aid their clients.

"Employers are just getting beat to death with rate increases on their health insurance," Vance says. "They are passing more premium along to the employees. Some are even discontinuing their coverage. The problem isn't going to get any better any time soon."

As employers continue to manage the bottom line, shifting premium or reducing coverages, gaps emerge. These gaps present advisers an opportunity to introduce new products. Which, Vance says, raises another issue for health insurance advisers to consider.

"If we don't offer voluntary products ... I guarantee you somebody else will," he says. He also cites the dwindling agent force, noting that his home state has lost thousands over the last decade.

"Is this a problem? Possibly. Is it an opportunity? I think definitely," Vance says. "If we are to remain and continue as a part of the security delivery system we must secure our clients and the needs of their employees through voluntary worksite," Vance says.

Jim Christenson, director of workplace for Philadelphia's Emerson, Reid & Co., also says the worksite market offers health advisers an attractive revenue opportunity as well as a good strategic opportunity with clients.

"It really does increase your first year income," he says. A small employer health broker, one that may drive about $14,000 in commission from a 60-employee client, can expect to add about 20% to that with the addition of one or two voluntary benefits.

The money is there, as long as it is done right experts say. When traditional group health advisers decide to tap the worksite market, they will need to make sure they do it correctly.

A big issue for Christenson and Vance is working conditions - the who, what, when, where and how employees are given the opportunity to review and select coverage.

Group meetings won't work. It's one-on-one time, whether that is face to face or on the telephone. Enrollers and employers must agree on how workers will buy the benefit.

"I would rather have 25% of a good enrollment than 50% of a bad one," Christenson says when trying to pinpoint the right revenue share. "I have seen all manner of types of reimbursement back to the health insurance broker for providing a reference to do worksite. It's based on the quality of the enrollment."

Another habit health brokers will have to kick is spreadsheeting. There are too many carriers, too many products and the permutations for each line are too confusing for casual observers. Experts like Christenson and Vance agree that a knowledgeable worksite adviser will be able to marry the case, the product and the three or four most appropriate carriers.

Underwriting concessions are crucial, says Christenson. Health advisers are used to watching their major medical price point move, but not the underwriting requirements. With worksite, the search is for carriers that will offer guaranteed or as much simplified issue as possible.

"Generally a company deciding to put in worksite is going to be doing it because the owner wants a particular benefit for the workers or for himself," Christenson says. If the CEO doesn't make the cut, neither will the program.

Learn more about the burgeoning worksite market and how health advisers can tap into it online. Register and listen to "Uncover the benefit of worksite sales" a Web seminar produced by EBA and the Association of Health Insurance Advisors. Questions or comments about this article or the online seminar should be sent to Robert.whiddon@sourcemedia.com.

Found money...

Worksite experts agree that there is money for health advisers to make off of their existing group clients

Lots of found money…Combining general worksite agent revenue assumptions (50% participation, $500 annual premium, 10% commission) for worksite products with LIMRA's market estimates reveals a tremendous revenue opportunity for the adviser community