In an industry being reshaped by acquisition, automation, and the relentless push toward digital-first service models, Kristen Dougherty, Senior Vice President and Employee Benefits Practice Leader at Univest Financial, says the most powerful thing a group benefits broker can offer right now is a willingness to show up.
With 25 years in the benefits industry, Dougherty has watched the broker-client relationship evolve from a transactional, renewal-focused exchange into something considerably more demanding and more valuable.
She told Insurance Business America that the firms that understand that shift are winning; the ones that haven't caught up are losing clients they don't even realize are at risk.
For most of the past quarter-century, the broker relationship was defined by one annual conversation: what's the renewal number, and can we bring it down? Employers set their plans and largely left them alone, while brokers collected their commissions and waited for the next renewal cycle in a "set it and forget it" dynamic.
Dougherty says that model no longer works.
"Gone are the days where employers are looking for a broker to help them bring down the cost of their insurance at renewal," she said. "It's not really just a one-time conversation. It's turned into an evergreen contract, if you will."
The shift has been driven partly by economics. With healthcare costs escalating at a pace that forces CFOs and HR directors to pay close attention, employers can no longer afford to be passive.
Equally important is a fundamental change in what employees expect; not just basic health coverage, but wellbeing support, mental health resources, and a sense that their employer is invested in them as people.
Navigating these expectations requires an ongoing, trust-based advisory relationship rather than an annual visit and a renewal deck.
This shifting landscape coincides with a massive consolidation wave across the brokerage industry. As large national firms acquire smaller agencies, an unintended opening has emerged for regional brokers willing to fill the service gap left behind.
When mid-sized businesses (typically 25 to 250 employees) are absorbed into national portfolios, the high-touch, community-based relationships they relied on often disappear. Account management is frequently moved out of state, and the deep understanding of local market dynamics gets diluted.
For regional firms like Univest, that disruption is a primary engine for new business. Employers who value a relationship-driven model and suddenly find themselves without one are actively seeking alternatives.
The brokers best positioned to win them are those who can credibly offer what national acquirers have deprioritized: local presence, community roots, and ongoing, proactive account management.
Ultimately, this market shift redefines what brokers are actually selling. It is no longer just about negotiating a benefits package once a year.
Instead, the value lies in the overarching infrastructure; the long-term advisory strategy, year-round service touchpoints, and dedicated advocacy that directly influence how an employer's workforce views their company.
Brokers who can build that ongoing foundation, rather than relying on annual transactions, are offering a level of stability and trust that large national aggregators are increasingly struggling to match.
