This document discusses how to develop an effective benefits technology strategy for brokers and their clients. It begins by outlining different models for benefits administration, including fully owning technology, partnering with consultants, or advising clients. The presenter advocates creating a strategy that addresses the broker's business, clients' needs, and partners' capabilities. Key aspects to consider include business models, client profiles, and evaluation criteria for partners. The overall message is that technology will continue growing in importance, so brokers need solutions to help clients facing challenges with benefits administration.

2. Clients calling
“Mayday”?
Design a benefits technology strategy
to answer their distress call
Scott Evans, benefitexpress

3. Bruce Shutan
Contributing Editor
Employee Benefits News/Advisor
Moderator
Scott Evans
Chief Product Officer
benefitexpress
Presenter
YOUR CAPTAINS

4. Your itinerary
• How to assess your readiness: learn and
identify the benefits administration
model that is right for you
• How to create a benefits technology
strategy for your business which is seen
as an imperative – not a “value add” –
by your clients
• Key criteria for evaluating potential
benefits technology partners

5. Which is having the greatest impact on the use of
benefits technology among your clients?
☐ Compliance (e.g.; DOL, ACA, FMLA, Paid Family Leave)
☐ Demographic shifts for clients
☐ Consumer expectations evolving
☐ Need for greater efficiency / cost-control
☐ New technologies, cloud-based software

6. SIGNS OF MATURITY
• More online than paper
• Move from transactions to strategy
• Improved communication methods
• Ben Admin for everyone
FUTURE OUTLOOK
• Pure defined contribution is coming
• More mobile
• 365 engagement
• Better integration
Reading the current benefit administration tides

7. When it comes to benefits administration,
many employers are calling “mayday”
More employers are
Increasing Ben Admin
outsourcing
More employers
are increasing
Ben Admin
outsourcing
Those outsourcing
are expanding
the scope
2014
2 in 3
Employers
2017
3 in 4
Employers
Top Mentions <100
Employees
100-999
Employees
1,000+
Employees
Increased number of
outsourcing vendors since 2014 12% 24% 35%
Average number of vendors used 2 3 5
Source: Guardian 4th Workplace Benefits Study, 2017

8. Benefits administration platform
Payroll integration
Enrollment services
ACA compliance capabilities
HR management capabilities
Quoting
Renewal support
Marketing/sales support
Support CDHP, defined contribution
Client service support
64%
53%
53%
51%
49%
29%
26%
26%
21%
17%
And so are brokers…
Areas where brokers need more support

9. What does this mean for you?
• Technology will continue to evolve & play a more
intricate role in our lives and businesses.
• As newer generations move into the workforce, start businesses
or move into decision making roles, agencies will need to:
 Adapt
 Learn
 Innovate
But most importantly,
 Develop a benefits technology solution to
answer your client’s distress call

10. In what ways does technology most enhance the value
of your business today?
☐ Protect: Defensive strategy against tech enabled competitors
☐ Grow: Win new clients
☐ Revenue: Growth of voluntary, ancillary, wellness, other
☐ Expenses: Ease administrative burden / inefficiency
☐ Clients: Meet their needs – compliance, cost-control

11. STEP 1:
Assess your readiness
Learn and identify the benefits administration model
that is right for you

12. When it comes to benefit enrollment,
it’s all about the big picture — not just a
a-year requirement. Smart brokers know that
successful benefit enrollment requires taking
long-term view and a holistic, rather than
piecemeal, approach.
“
“
— Jay Hutchins, California Broker Magazine

13. OWNER
Has Own Platform
PARTNER
Partners with a Tech
Consultant
ADVISER
Advises Clients on
Their Options
“I provide ben admin
support to my clients
as part of my service”
“I work with an entity
that has a full-service
ben admin platform”
“I recommend the best
platform for my clients
and negotiate funding”
What is the Broker
VALUE PROPOSITION?
Who is the PLATFORM
ADMINISTRATOR?
Who contracts with
SOFTWARE PROVIDER?
Broker Tech Consultant Ben Admin
Broker Tech Consultant Client
Different types of
BUSINESS MODELS

14. OWNER
Has Own Platform
PARTNER
Partners with a Tech
Consultant
ADVISER
Advises Clients on
Their Options
• Complete Control
• Only One Solution
• Resource Requirements
• Expertise Needed
• Compliance & Security
CONSIDERATIONS
When Selecting a
Business Model
• More Flexibility/Choice
• Can Tailor Solutions
• Scale
• Trust & Experience
• Expertise Not Required
• Compliance & Security
• 2-3 Solutions
• Scale
• Trust & Experience
• Expertise Not Required
• Compliance & Security
Different types of
BUSINESS MODELS

15. Which is most difficult for your clients in managing their
employee benefits programs?
☐ Maintaining legal / regularly compliance
☐ Improving efficiency of benefits administration
☐ Controlling other benefits related costs
☐ Communicating benefits plans to employees
☐ Improving workforce well-being

16. STEP 2:
Create a benefits technology
strategy for your business
One that is seen as an imperative
— not a “value add” — by your clients

17. Your
Business
Strategy
Your
Technology
Partner(s)’
Capabilities
Your
Clients’
Needs
DEVELOP THE STRATEGY
Address key
questions about…
…and find the
intersectionYOUR BUSINESS
STRATEGY
YOUR
CLIENTS’
NEEDS
YOUR
TECHNOLOGY
PARTNER(S)’
CAPBILITIES

18. • Size of Firm
• # of Clients, Geographic Reach
• Client Mix by Industry, Size Segment
• Growth Strategy & Role of Technology
• In-house Technology
• In-house IT Expertise/Resource
Model & Strategy
ADDRESS KEY QUESTIONS ABOUT YOUR BUSINESS

19. • # of Employees, Locations
• Industry
• Workforce Composition (age, use of tech)
• Benefits Plan Complexity
• Benefits Management Style (e.g., Hands-on/off)
• Integration Points
• Use of HR Technology
Profile & Needs
ADDRESS KEY QUESTIONS ABOUT YOUR CLIENTS

20. STEP 3:
Understand key criteria for
evaluating a potential benefits
technology partner
Partner with an expert – let them handle the technology

21. • Company Ownership
• Market Reputation
• Pricing Models and Consistency
• SaaS vs. Full-Service vs. Both
• Capabilities Scope and Reach
• Carrier Partnerships
• Software Provider Partnerships
Business Model

22. • Software Ownership
• Who Stores/Transmits the Data
• Infrastructure and Q4 Up-time
• User Experience
• Integration with Carriers/HCM Systems
• Customize vs. Standard Configuration
• Specific Features Important to You /Your Clients
• Proof of Security Audit
Software Features

23. • Years in Business
• Number of Employees (Technical vs. Client-Facing)
• Number of Group Clients & Associated Lives
• Implementation Process (Roles/Responsibilities)
• Client Support Model, Client Satisfaction Metrics
• Transparent Service Level Agreement
• Tech E&O & Cyber Security Insurance
Operating Model

24. How many benefits technology partners
interact with your business?
☐ I don’t leverage technology today
☐ I have tested several, but not sure we’re committed to any
☐I have a single vendor
☐I have 2-4 partners I use to cover most client needs
☐Unlimited. I use partners based on my client’s needs

25. QUESTIONS?