Are You Getting All You Need From Your Current Insurance Broker?

The insurance industry, like so many others, is evolving at a rapid rate due to technology’s impact on how business is conducted. For decades what was once a slow-paced industry involving mountains of paperwork, yes actual paper, is being done faster and more streamlined than ever before. What does this mean for business?

A recent survey found that the average age of the 157,634 insurance brokers in the US are 45 years old and 62% are white males. For decades the stereotypical insurance agent did not have to innovate. Technology during that time consisted of a phone and a fax and it stayed that way for a long time. Times are changing and so should how your insurance broker approaches your benefits.

It is easy for companies to avoid wanting to inspect the work their broker is doing. Although insurance is one of the costliest parts of doing business, a lot of businesses tend to take a “head in the sand” approach when dealing with it.

You’re probably using the same agent you have been for a long time just because that’s who your company has always used or maybe you went to college with them, but are you getting what you’re paying for? Brokers receive commissions each month you pay your premium. A business owner should look at that as that broker’s salary. Are they working for their salary? What if you had an employee who you really liked but you weren’t exactly sure what they did for your business? Would you inspect what tasks they were doing to ensure they were earning what you pay them?

Now more than ever, I would encourage every company to have this same conversation with their current broker. Are they providing services such as, maintaining compliance, day to day HR support and doing their due diligence each year to ensure you’re getting the best benefits for the best rate? Do they have a long-term strategy for cost containment? Has your business grown and has their ability to support your operation grown with it? Have you explored alternative options such as captives, level funding or self-funding?

The way things have been done is not the way things will continue to be done. I implore you to take charge of your insurance spend, inspect what is often overlooked and make sure your broker is working for YOU!