When exploring your employee benefits options, you’re no doubt focused on Compliance, Wellness and Cost Containment, but are you asking the right questions to determine the ethics of your insurance broker? I believe it’s just as important to understand WHOM you’re dealing with and if he/she will be there for you and your employees long after renewal.
Benefits packages account for one-third of your company’s overall operating budget so why not do all you can to ensure you’re getting service worthy of that investment?
At Playa Vista Insurance Services, we pride ourselves on being present and available for our clients. For this reason, I would like to share the following, non-traditional questions to ask your insurance broker.
What kind of a person is your broker? Start by asking why they do this for a living. I am surprised how many people don’t ask this question. This is the most lucrative industry in the world so why not find out what really motivates them?
What do they do to give back? Donating money is great, but donating time means more to some people.
How are the administration costs distributed? How is your company impacted by the costs? For example, men are less expensive than women and older people. Commissions on life insurance are much higher because the premium is much lower. Life and disability commissions are usually 15%; medical can be 4% or 5%. Ask your broker to break it down for you so you can make the most informed decision.
Will the broker be available when employees have questions, or will they be forced to rely on customer service numbers at the insurance company?
How often will we see you? I am shocked how many brokers don’t see their clients very often. They swoop in at renewal, deliver an increase, do the meetings, and then don’t see the client again until the next renewal. And they are getting paid big dollars!
Do they understand your company culture? Insurance brokers should care enough to understand the culture of your company, and how can they fully understand the culture if all they do is deliver a renewal?
Will you provide a Stewardship Report? I have spoken with several brokers and asked about whether they provide Stewardship reports for their clients, and most don’t know what I am talking about. Click here to learn more about Stewardship Reports.