Getting the most out of your broker
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Tens of thousands of middle-market insurance buyers may be using a broker that does not match their needs, according to a new Business Insurance white paper.
Executives at those companies often let years go by without conducting broker performance reviews and are unaware of what other brokers might be able to offer in terms of obtaining cheaper pricing or better service, the white paper states.
The reasons for the inertia by middle-market buyers vary: Sometimes the brokers have been placing the coverage for decades and are virtually members of the corporate family; other times the executives in charge of insurance purchases have several other responsibilities and devote little time to insurance; in other cases brokers may be a family member or friend.
According to consultants, though, 20% to 50% of middle-market buyers may be retaining brokers that are not equipped to service them properly. Given the huge number of companies in the middle market, that means that between 93,000 and more than 232,000 companies should be looking for a new broker.
Should they choose to at least review their insurance brokers, there are several methods that executives at middle-market companies can employ such as open competitions, assigned market competitions or even reverse auctions.
The white paper, “Is it Time to Change Brokers? Picking the Right Broker for Your Business,” examines the issue of insurance broker reviews and how often they should be conducted, and offers advice from experts on how to conduct those reviews.
To purchase a copy of the white paper, visit www.BusinessInsurance.com/whitepapers. Business Insurance subscribers can take advantage of the specially discounted rate of $49.
