Why Employee Benefits Requires a Laser-Like Focus

The tumultuous nature of the U.S. health care system makes employee benefits a worthwhile line of business for independent agencies looking to prove their value as trusted advisers.

But to truly succeed in this complex market, most agencies discover the need to maintain a specific person or team that focuses solely on health and benefits.

When he started his career as an l-h agent, Jay Duke, owner of Waring-Ahearn Insurance, Inc. in Leonardtown, Maryland, intentionally partnered with a principal who was well-versed in p-c and commercial insurance. At one point, l-h comprised a high of 20% of the agency’s income.

But nearly three decades later, Duke’s partner has retired, forcing him to handle the p-c portion of the book as well. “It is very difficult for one person to be on top of it all,” says Duke, who has only two employees. “I have found that very demanding. I look forward to an opportunity in the future where I could find another partner to share those responsibilities with.”

Employing experts in both categories is a sound business strategy for The Horton Group, headquartered in Orland Park, Illinois, where product mix is 55% p-c, 40% benefits and 5% personal lines. “No line is treated as just an accommodation,” says Mike Wojcik, senior vice president and principal. “Each line can stand on its own, but collectively, we are stronger and offer a better value for our clients.”

“If a business comes here looking for liability, professional, workers comp and benefits, they can get it all wrapped up in one phone call,” agrees Renee Guariglia, executive vice president at Falcone Associates, Inc. in Syracuse, New York. “Regardless of what side of the house gets a referral, that side will take the meeting and feel it out, and then we’ll see if we can’t wrap them up on both sides of the house.”

Falcone’s property-casualty division goes back to its roots in 1920. The l-h side didn’t start until 1991, but Guariglia was there on the ground floor.

“I could dabble in p-c, but I don’t think I could be really good at it,” Guariglia explains. “I’ll always take care of the benefits because I know I’ll knock it out the park. If someone needs p-c, I’m going to bring in one of my partners who has the knowledge and the expertise to seal the deal and put together the proper package.”

Quincy Branch, CEO of Branch Benefits Consultants in Las Vegas, has also expanded into p-c sales since starting his business as an exclusively l-h agency eight years ago.

“Clients really come to us as independent agents for risk management,” Branch says. “If you put in the proper employee benefits strategy, that also can affect your workers comp, for example, and vice versa. If I’m being a true risk manager, I can’t just look at one segment of the business.”

Jacquelyn Connelly is IA senior editor.