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Small Business Employee Benefits and HR Blog

What Brokers Should Look for in a Defined Contribution Partner

For health insurance brokers and agents, a Defined Contribution Solution offers a tool to increase individual health insurance policy sales and retain clients who are dropping group health insurance.

Why Brokers Use a Defined Contribution Partner

Health insurance brokers partner with Defined Contribution Software providers to increase their book of business. Defined Contribution offers brokers an opportunity to retain small and medium group clients who are dropping health insurance because of cost. Defined Contribution also serves as a lead generation tool to acquire new clients who have not been able to offer group health insurance in the past because of cost or participation.

Opportunities to profit from offering Defined Contribution Solutions include: 

  • Increased individual health insurance policy sales

  • Commissions from the Defined Contribution provider (one-time and/or recurring)

  • Referrals from happy clients

  • Consultant fees charged to businesses for expertise in health reform, small business health insurance, and Defined Contribution

Additionally, the rules and regulations governing Defined Contribution Solutions can be complicated - especially now, with new health reform regulations. A Defined Contribution partner takes care of the reimbursement plan administration and compliance so you, the health insurance broker, can focus on your main business - health insurance! 

What to Look for in a Defined Contribution PartnerDefined Contribution Partner

Here are the key features to look for in a Defined Contribution partner:

  • A turn-key sales website, with white labeling options
  • Integration of your insurance services (e.g.: quote engine or website)

  • Customizable marketing materials

  • Dedicated Account Manager for sales assistance, training, and consultation

  • Compensation for referrals (employer clients, and sub-agents)

  • CRM (Customer Relationship Manager) for automatic notifications when an employee’s plan status changes due to family additions, promotions, high claims, etc.

What should your clients expect? See: Defined Contribution Administration - 14 Features To Expect From Your Provider.