As the P&C insurance industry gets more competitive, with insurance brokers facing higher quotas to achieve bonuses and businesses watching every dollar, you might hope to find a pot of gold at the end of the rainbow this spring to help reduce your stress.
The DBL Center can help you find it. Best of all, it doesn’t involve lead generation, cold calling, or prospecting new clients. We can help you expand your book of business by helping your clients identify risk gaps in coverage and invest in the important benefits they’re missing.
You can help your existing clients, who already trust you and rely on you for required benefits, fill gaps in coverage to create happier employees and more secure executives.
What Are Risk Gaps?
Risk gaps in insurance coverage are exposed areas where clients aren’t covered. These often include voluntary benefits that can be covered by the employer, the employee, or on a shared-cost basis.
Unsecured risks might include:
- Dental
- Vision
- Long Term Disability (LTD)
- Individual Disability Insurance (IDI)
- Life Insurance
- Long-term Care
Across the board, The DBL Center team hasn’t noticed any patterns in risk gaps. Regardless of geography, the size of the company, or the industry, any business can show risk gaps anywhere. The only way to find out is to evaluate your books and look for areas that clients lack coverage and address each client individually.
How The DBL Center Can Help You Identify Risk Gaps
Assessing risk gaps for a large book of business can be time-consuming and tedious. That’s where The DBL Center’s team of specialists comes in. We look at the white space in your book of business, places where clients are exposed. These risk gaps present opportunities for businesses to beef up their benefits packages to attract and retain workers.
Owners and executives can also protect their own finances and savings with enhanced benefits, especially LTD, IDI, life insurance, and long-term care coverage.
Businesses often have risk gaps at the higher level, since benefits supervisors focus on the majority of employees and not executives at the top tier. But programs like individual disability insurance (IDI) can provide up to 75% income replacement, including base pay and bonuses, for employees earning $100,000 or more per year.
Long-term care is another often neglected benefit that can provide peace of mind for employees and executives at virtually every income level.
Understanding Reasons for Risk Gaps
When The DBL Center evaluates your clients’ benefits packages, we can offer suggestions and prepare quotes. We can find ways to save your clients money on required benefits and roll those savings into areas where they lack coverage.
As the broker, you can help find out why your client has unsecured risks. Risk gaps occur for a few reasons:
- The client is working with another broker or carrier and has coverage in place
- The client believes employees aren’t interested in coverage
- The client can’t meet participation requirements
In the first case, we can try to quote a lower premium cost or show the advantages of writing required, ancillary, and voluntary benefits with one broker.
If the employer or benefits advisor believes workers don’t want the coverage, surveys can reveal the truth about what workers want. Likewise, if the employer believes the organization won’t meet participation requirements for a specific benefit, they might be surprised by what happens when they offer these benefits with low premium rates.
Providing education about ancillary benefits can help workers and owners, alike, realize that opting in for coverage is a smart, long-term financial decision.
By looking at the white space that represents risk gaps for your clients, you can unlock that pot of gold you’re looking for as we move into the second quarter of 2024. Reach out today and let The DBL Center help you as your white-glove, white-label insurance wholesaler.
