According to recently posted messages by insurance Brokers, Zenefits is often successful in luring employer groups away from their current broker relationship. This is generally done through the promise of impressive enrollment and payroll technology.
However, employers soon realize that Zenefits does not have the capacity to provide the advisory and support services that local and regional brokers and agents can provide.
In a short period of time, the clients return to their previous brokers, realizing that the technology advantage of Zenefits, does not surpass the TLC and advisory services that brokers provide.
Here are quotes from real brokers:
from Susan in NYC;
Last year I lost 3 clients to Zenefits and they were all back in 3 months. Whenever I have a client or prospect brings them up I tell them about my clients experience and make intros to them to speak so they can get firsthand experience. Since then we haven’t lost a client to Zenefits. The biggest complaint my clients made was the knowledge and response time. They would call with what all of us in the business would consider an easy question and they would take a week plus to respond.
As for companies we are using to offer a solution, Www.allay.io is basically a Zenefits that only works with brokers and has been a dream to work with. Also Benetrac that is owned by Paychex has been good too!
Susan Combs PPACA
From Nelson in Nashville:
An adviser sent me an email thread from an employer who was a Zenefits client at the time. Zenefits sent notice of a 16% renewal increase from the carrier, Aetna. The Zenefits broker attached Aetna’s 45-page renewal packet and offered that this was “slightly above the 12-15% average increase we are seeing across the board…. If you would like to set up a call to discuss some of the alternatives that Aetna laid out for you in the renewal packet, I would be happy to do that.”
The client’s email reply was “Sure we want to talk about that.” The client’s frustration level with Zenefits was so high that they signed an AOR with the new adviser within 10 minutes of the meeting.