7 Reasons Why Your Employee Insurance Broker Is Lousy

Executives need to trust those with whom they work. This is especially true about third parties who are called in to help. An employee benefits insurance broker is a third-party, and many are used to help with employee benefits. The trouble is not all of them are good. In fact, some really suck. Decision-makers should observe the behaviour of their employee insurance brokers and note whether they are doing their job. Here are some signs that the employee insurance broker you are using is not up to speed.

  1. Poor Communications. It is extremely important to maintain communication with your insurance broker. If you can’t get a response within 24 hours, there is a problem.
  2. Limited Product Knowledge. There are insurance brokers who are specialists in certain areas. However, if you are a small company you want someone who understands several types of employee insurance policies. Anything less than that is a waste of your time.
  3. Premium Inflation. An unethical broker is going to inflate premiums and perhaps charge an agency fee.
  4. Refusing to Offer Alternatives. A reputable insurance broker should offer his or her client several alternatives. Insisting on only on one insurance product suggests there may be a behind-the-scenes relationship between the broker and the insurance carrier.
  5. A Poor Communicator. Brokers need to communicate to employees about the company’s benefits program. These experts should be able to explain various insurance products and answer any questions. Not being able to do this strongly hints that the broker is inexperienced or doesn’t take the time to learn about the product.
  6. Lack of Transparency. Your broker should expect to answer all questions completely. If the information not readily available, this person ought to be getting back to you as soon as possible.
  7. Giving the Wrong Information. It is a sign of staggering incompetence. It means that your broker is not reading plan information carefully. Wrong information leads to the wrong decision, denied claims and that is very expensive.

You should not assume that your employee benefits insurance broker is doing the best possible job, and the above reasons raise red flags. It is more important for us to do business honestly than to make a shady profit from our clients. We always encourage people to speak with our existing clients and ask about us in the community. Do you do the same when selecting your insurance broker?

David Ho
Medical Benefits Designer

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