When boom turned to bust, this Las Vegas agency turned to benefits
After more than 100 years of property/casualty insurance success, what causes an independent agency to build an employee benefits department? The opportunity to grow and serve clients, certainly, but also changing economic conditions.
Founded in 1909, Las Vegas-based Cragin & Pike was built on the growth of the gaming and tourism capital of the United States, serving the property/casualty insurance needs of booming construction and an exploding gaming industry.
"When you fly into Las Vegas," says Chief Executive Officer Greg McKinley, "look out the window and you will see that Las Vegas is an island-there is nothing but desert for 300 miles around us. For good or for ill, the founders of the agency chose to live or die by the future growth of Las Vegas."
When an employee suffers a heart attack and needs to be rushed to the hospital, he's concerned only with the medical crisis, then with subsequent treatment. Along the way, he taps whatever medical insurance he has through his employer to pay the bills-as he works on returning to productive work and home life.
It would be nice to think that when an employee suffers from a crisis that is mental or emotional, he would be equally sure about his course of action and access to treatment. And that his employer could play a major role in his recovery and return to a more productive life.
Despite the differences between physical and mental afflictions, the bottom line is that both can be debilitating to employees and costly to employers.
Grow your revenue while helping employers protect workers' income and savings
A recent Eastbridge Consulting report says that more than 70% of employers of 10 or more individuals offer voluntary benefits products. Top reasons employers cite are company cost savings and employee interest in, and need for, these kinds of products. Continued implementation of the Patient Protection and Affordable Care Act (PPACA) is another driving force for some products.
Agents who build a solid voluntary benefits portfolio can help clients and at the same time improve their own business. "There are a number of voluntary benefits some employers don't offer today," explains Leston Welsh, vice president, voluntary benefits, at SunLife Financial US. "Expanding the package they offer employees can help boost retention. For brokers, of course, a strong portfolio generates added revenue."
