When should I use multiple agents? How the ELITE buy insurance.

When companies approach me looking for alternative options, I often hear the phrase, "I'm just looking around to keep my broker honest". For me, this is a clear sign that the company is?typically dealing with one of two issues in their current relationship: Laziness or Lack of Transparency/Education?

1. They have been with their broker for a long time, they like them, but they feel like he/she may be getting lazy and want to "check".?
2. There is a lack of transparency in the relationship and the company feels like every increase and coverage change has poor explanation or no additional options/suggestions are made and "it is what it is".

Of course, these are not the only reasons companies look around, but the root problems typically stem from here.?It is also not uncommon for both of these issues happening at the same time.?

That said, regardless of a company's reason for looking, they should certainly get quotes from other brokers just to keep them honest, right??

WRONG! (at least 97%+ of the time).?

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You see, companies have this all backwards. They look at brokers to go "earn" their business through quoting against their current relationship. The problem is that almost all brokers have access to the same markets (insurance companies)! ?

Which begs the question...Why can't the current broker do it? ?

This is why I think companies need to to change the way they align with brokers and how they currently buy insurance. Ultimately, I believe every company will be much better off if they do more diligence in hiring a broker to represent them, rather than pitting brokers against each other as means to an end.

I know that sounds selfish (as I'm a broker myself), but let me give you an example that will explain my point.

Tom Brady's free agency being the perfect example:?

As we all know, in the summer of 2020, Tom Brady (aka the G.O.A.T.) had decided he was leaving the New England Patriots and was looking for a new team that he could have the opportunity to chase few more championship with.

In looking for his new home, money was obviously important, but he cared much more about being in the right situation with a team that gave him a legitimate opportunity at winning another Super Bowl. We all knew Tom wouldn't take the best paying deal on a poor team. He knew what he wanted and hired Don Yee as his agent to represent him to all 32 NFL teams. ?

Don's job was to?approach the teams and whittle down this list until he had the final few opportunities that truly met Tom's interests. With the list narrowed down, Don began to play the leverage game with the remaining teams to ensure he put Tom in the best situation, with the best terms and structure.??

We all know how the story ends as Tom and Don got a deal done with the Tampa Bay Buccaneers and the team ended up winning another Super Bowl in his first season there.

So how does Tom's free agency story relate to buying insurance and using your agent wisely? I'll start with a question.?

If Tom wanted people to work hard for him and bring him the "best opportunity", why didn't he hire 3 agents, divide up the 32 NFL teams, and have each agent approach a few and bring him their best offer? ?

It seems silly to ask that question in thinking about it from Tom's perspective, yet we see this happen with companies Every. Single. Day. when they are looking to find the right agent for their employee benefits and commercial insurance.

Each agent that is put into a market split scenario only has one option to offer you at the end of the day. They may know their offer is worse than the other agent's, but that's the only option they have to work with you. They're forced to "sell you" what they have even if it's not in your best interest.

Having one agent that is truly aligned with your interests will help you get the best deal and terms for what YOU want.

Here is a better way going forward.

First things first, a company needs to determine what they want out of their health plan (attract and retain top talent, lowest cost, great coverage/plan design, employee health, employee satisfaction, etc.).

Next,?when you are coming up for a renewal, or in a situation where you want to evaluate your options: interview brokers, set expectations, and pick ONE to help you through the process.?I know that sounds scary and is counter to anything that's been "normal" in the past, but it's truly in your best interest.?Don't have them quote. Try it once.

OBJECTION: But what if the grass isn't greener? The insurance industry has put protections in place for companies to find the right representation that fits their needs. You can use what is called an Agent of Record (AOR) letter to switch back your old agent (or to another one) if you are unhappy with the one you picked. It's as simple as signing a piece of paper. And I promise, your original agent will have you back if the grass isn't greener...?

I could talk about this topic for hours, but I want to leave you with some ideas on how to get started based on my suggestions.

Questions to ask yourself (as an insurance buyer): ?

• What do we want out of our health plan as of today? (see above) Force yourself to stack rank.??
• Are we going to have different wants/needs of our plan in the future? If so, how will that change??
• What am I frustrated with in the insurance buying process? If I could wave a magic wand, what would I change??
• Do we feel like we have transparency in our current relationship??How confident are we that our current relationship is aligned with our interests and presenting us in the best light to the marketplace??
• Are we looking for a fee or commission arrangement with our agent/broker? Do we have a preference moving forward??

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Questions to ask your broker or prospective brokers:?

• Are there any markets you have access to that other brokers don't? If so, how did you get it and why are you exclusive with them??
• In an ideal world, what does a broker-client relationship look like to you??
• Who do I work with outside of you (the person sitting in front of me)? Walk me through how that looks on a day to day basis.?
• How do I know what you will deliver to us??
• How many clients do you work with in my same industry or have my same funding type (fully insured, level funded, captive, self-funded, etc.)??
• How do you handle.....? Fill in the blank with your frustration with the insurance buying process above.?
• Ask if they provide their services on a fee or commission basis and see if they'd be willing to align with what you'd prefer.?
• We value transparency, what are some ways that you feel like you could deliver that better than your competitors???

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Next Steps: Ask yourself these questions and determine a criteria of how you want to evaluate brokers going forward.