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Group benefits brokers face client backlash against “set it and forget it”
Industry consolidation and rising healthcare costs are pushing employers toward an ongoing, trust-based broker relationship rather than annual renewal conversations.
As consolidation and digital-first service models reshape the group benefits market, Univest Financial employee benefits leader Kristen Dougherty says the traditional “set it and forget it” broker approach is increasingly failing to retain clients.
Dougherty told Insurance Business America that what used to be a largely transactional, renewal-focused exchange is now expected to be an evergreen advisory relationship, with brokers showing up beyond a single annual meeting about renewal numbers.
She pointed to escalating healthcare costs forcing HR and CFOs to stay engaged, along with evolving employee expectations that go beyond basic coverage to wellbeing support, mental health resources, and a stronger sense that employers are invested in individuals.
Dougherty said acquisition activity has also created an opening for regional brokers, because when mid-sized employers are absorbed into national portfolios, local account management and deep understanding of local market dynamics can be diluted or moved out of state.