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October 1 - 3, 2000, The Westin Providence, Providence, R.I.
As Use of Internet Grows,
Brokers' Role Moves More into the Benefits Realm
Caroline Saucer, Caroline.Saucer@ambest.com
With three out of four brokers using the Internet every day, it's clear that technology will be the catalyst for reshaping the broker's role, rather than bringing about its demise, said Bernard DiFiore, the chief executive officer of Benefitmall.com.
DiFiore spoke at "E-Fusion: Where Insurance and Technology Converge," a conference sponsored by A.M. Best Co. held Oct. 1-3 in Providence, R.I. Full coverage of the event is available online at http://www.ambest.com/e-fusion.html.
In today's marketplace, the role of the broker is geared increasingly toward employee-benefits product consulting, he said. "The broker is an integral part of the employee-benefits marketplace and information exchange," he said. "Small businesses respond to the personal approach. They want the human touch that says the information they've gotten is right. They don't want to have to go online to BenefitWizard to see if their 401(k) deposits made it."
The rush is on to provide human-resources systems and retirement products--especially defined-contribution plans, he noted. "Brokers are a big part of selling defined-contribution programs," he said. "It's entirely an under-100-employee marketplace. A number of companies have adopted a relationship with a broker on Monday who became a benefit consultant by Tuesday."
Another rapidly growing field is mobile commerce--the use of wireless telecommunications. This is something that brokers who are constantly on the move can use to their best advantage, he said. "You could be doing the last putt on the 18th green, and by the time you're having a hamburger on the 19th hole, you can have a quote for a client," he said, noting that wireless communication is expected to be used by 73 million people in the next three years. Wireless communication can allow people to check e-mail, generate leads, look at their schedules, get a quote and then revise it, he added.
"All these decisions can be made in the live, interactive environment. This [broker] is not the guy with the plaid sports coat and the mustard on his tie," DiFiore said.
Brokers are increasingly tech-enabled and customer-centric, DiFiore said. "They can't continue to be organizations that fax, fold, spindle and mutilate various forms," he said.
To get the most out of using the Internet, brokers must:
• Avoid the temptation to isolate e-commerce initiatives within a company;
• Focus on core competencies and outsource to gain flexibility;
• Know that the Internet enhances sales but won't replace humans; and
• Choose partners carefully.
"Brokers know that technology is the key to their survival," DiFiore said. "They are tenacious street fighters, and they will use whatever is available to increase their efficiencies."
Although more brokers are using the Internet, the sell-close ratio for business online is 8% or 9%, vs. 18% for non-Internet business. DiFiore said that's because a large number of brokers only recently have begun exploring the Internet and will take a while to come up to speed.
DiFiore created BenefitMall.com as the first online exchange for buyers, sellers and providers of employee benefits for companies with 100 employees or fewer. The company now sells more than $1 million in premiums each day. | 
