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Digital EditionRising Star Paul Martinez Shares Insight on the Successes of Employee Benefits Brokering
Come see the Stars! As part of our ongoing coverage of the best brokers in the commercial insurance space, Risk & Insurance®, with the sponsorship of Philadelphia Insurance, is expanding its coverage of the Rising Stars, those brokers who represent the next wave of insurance brokering talent.
Look for these expanded profiles on the Risk & Insurance website and in your social media feeds throughout the year.
For this edition, we spoke with Paul Martinez, SVP employee benefits, Newfront, and a 2024 Employee Benefits Power Broker winner.
Risk & Insurance: What are some of the keys to your success as a commercial insurance broker?
Paul Martinez: My success largely stems from having clear focal points for both mid-market and enterprise accounts.
In mid-market accounts, I focus on two main areas. First, I lead efficient and smooth PEO extractions by breaking down the transition into four essential project tracks: HR processes & systems, employee benefits, business insurance, and retirement.
Each track has a change management plan and a dedicated project leader. My team and I manage several transitions annually, achieving cost savings between $500 and $2,500 per employee each year. Second, I help companies transition from fully insured to self-funded plans, implementing a sustainable, multi-year strategy for savings. For example, a recent transition for a 500-employee company saved $1 million in their first year.
While many enterprise clients are already self-funded, I often find that their plan structures can be optimized to improve the employee experience and the company’s financials.
I focus on renegotiating self-funded vendor contracts to better align with the interests of both the employer and employees, rather than primarily benefiting the providers. For instance, one new client with a high-cost claimant was spending $883K per year. After restructuring their plan and contracts, we reduced this cost to $381K per year, resulting in a $502K annual savings.
R&I: In the economic sectors you work in, what are some of the biggest challenges insureds face?
PM: In recent years, one of the biggest challenges for insureds has been managing costs in the face of economic pressures and rising health care expenses. With tighter budgets than in previous years, many employers are focusing on cost-saving strategies and improving efficiencies within their benefits offerings for 2025 renewals.
Economic uncertainty and inflation have resulted in reduced budgets, prompting companies to prioritize essential benefits, eliminate redundant programs, and streamline offerings. Employers are now closely evaluating each benefit line item, opting for minimal adjustments that maintain core benefits without significantly impacting the employee experience.
R&I: If you could name one thing the commercial insurance industry could improve on, what would it be?
PM: One area with significant room for improvement in the commercial insurance industry is the use of technology. Many of the largest insurance brokers still rely on outdated, legacy systems that limit their ability to innovate and adapt to changing client needs. These systems often create inefficiencies and prevent brokers from delivering a seamless, data-driven experience.
At Newfront, we’re taking a different approach. We’re building a modern technology platform designed to enhance the client experience and streamline operations for our team members. By using advanced technology, we can integrate data more effectively, automate time-consuming processes, and provide clients with a more responsive and transparent experience.
In a broader sense, the insurance industry could greatly benefit from embracing digital transformation. Leveraging modern technology would allow for better data analytics, quicker response times, and enhanced personalization for clients. As we move forward, insurance brokerages that adopt these advancements will be in a stronger position to meet clients’ evolving expectations and thrive in a digital-first world.
R&I: Where do you find the most joy in your work?
PM: The greatest joy I find in my work comes from seeing our clients genuinely delighted with the solutions we provide. There’s nothing more rewarding than receiving feedback from a client who is thrilled with the work our team has done.
When clients are not only satisfied but feel that we’ve exceeded their expectations, it reaffirms the purpose and value of our efforts.
It’s that moment when they recognize the positive impact we’ve made on their organization or their team — it’s incredibly fulfilling and motivates me to keep delivering our best. &
