A new survey indicates half of insurance broker executives surveyed feel the Affordable Care Act has either been very positive or positive on voluntary sales.
The survey by Avon-based Eastbridge Consulting Group, a marketing advisory firm serving insurance and financial services organizations, found the Affordable Care Act has had a “very positive” (7 percent) or “positive” (43 percent) effect on voluntary sales. On the opposite side, 39 percent of brokers are unsure and 11 percent believe that ACA has had a negative impact on their voluntary sales.
The survey also asked executives to reflect on the importance of private exchanges on their voluntary sales efforts today and five years from now. Currently, just under 40 percent believe that private exchanges are “very important” or “important.” However, executives believe that private exchanges will become more important to their voluntary sales efforts in the next five years. Specifically, 54 percent believe exchanges will be “more important” and 39 percent “a little more important,” according to a statement. None of the executives surveyed believe that the importance of private exchanges will stay the same or decline in five years’ time.
The study also found that the executives believe defined-contribution plans will create value in terms of voluntary sales. Twenty-five percent indicated that defined-contribution plans will be “a little more important,” 50 percent believe these will be “more important,” and 7percent believe the plans will be “much more important” in the next five years.
Executives were also asked how they believe the broker role will change in the next five years. The top four changes they listed include: “fewer in-person enrollments,” “more consultative role with the employer,” “lowering of commissions,” and “decreased interaction with the employees.” “Other” comments were “anticipated movement to levelized compensation” and “a more platform-focused solution selling” versus a pure broker/distribution role.
