What to look for in a Broker

I don't have much experience with benefits, but our company is thinking of changing brokers this year and I'm not really sure what to look for. We are privately held, have about 100 employees and fully insured. Our current broker basically shows up at open enrollment and gives us our renewal rates sometime in November. What should I be looking for in a potential broker? I'm thinking range of services, relationships with vendors, local presence, etc?

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  • Do you belong to a local HR group, like SHRM? If so, I would go to them first. Our group is very helpful in steering you towards someone who is fair and reliable, and away from someone who will not take care of you.

    If you really have no local contacts, I would write out the questions I am most likely to ask my current broker and get out the yellow pages. It is good business to occassionally check the market to see what all, and who all, is out there. (Even if you are happy with your current broker, you should check out others every 3-5 years.) You should talk to a minimum of 5 possible candidates. (I would also document your due diligence.)

    When you talk to possible candidates, tell them about your company and ask them your list of questions and for their recommendations. Do they represent one firm or do they have several? How do they get paid? How often can you expect to see them? (Most only come at renewal and enrollment time, but should be responsive if one of your employees is unhappy or if you have questions.) Ask them what their experience is, what kind of continuing education they get, and find out who their clients are. Check their references. Finally, don't be in a big hurry to make a decision. There will be pros and cons with almost everyone you talk to, so take your time.

    Hope this helps.

    Good luck!

    Nae
  • We contacted five or six brokers, provided them with our current policy and had them each present their preferred plans to our insurance panel.

    We're delighted with the plans and brokers we ended up with.
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