Is an Insurance Consultant Right for Open Enrollment? 3 Things to Consider

Insurance and benefits are a complex and ever-changing landscape. It’s important to review your coverage regularly to ensure you’re getting the best value for your money, but it’s also important to make sure you are remaining a competitive employer.

Most companies may change carriers or benefits they offer, but they really should also entertain other insurance brokers every few years, perhaps with an insurance consultant.

I once worked with a head of HR who always spoke to new agencies to see what they offered. While 90% of the employees were happy with the carriers and coverage options, and the company was content with pricing, they were able to switch during a botched open enrollment because they were prepared.

HR gained a valuable partner with that change and while the company maintained the same plans and carriers, the advantages gained were immense. They reduced overall costs and gained support and resources they never knew were possible.

What is an Insurance Consultant?

Brokers only broker insurance. Insurance consultants are more strategic, have more tools, are analytical in approach, and broker insurance. There is a difference in what the client receives in service and objective support. If you never met with one, it’s worth it. In most cases an insurance consultant’s goal is not to replace the insurance that is in place, but to make it run more effectively.

A solid insurance consultant goes beyond purchasing better. They aim to create a valuable ongoing understanding of plan performance to effectively control expenses. They partner with their clients providing comprehensive support and guidance.

When is the Right Time to Change?

While most people assume you can only change during a renewal period, you can actually change your broker of record at any time during the year.

If you have had prior challenges with COBRA notification, support or enrollment events in the past, I recommend keeping an option on standby.

Why Consider a Change?

Every year there are more providers, carriers, insurance options and technology to fulfill a company’s needs. While there are many benefits to meeting with an insurance consultant or in switching insurance brokers, here are the top three reasons for your organization to consider a change:

1. Better Partner

When you first start working with an insurance broker, they may take the time to get to know you and your business. However, as time goes on, they may become less attentive. By interviewing other brokers or meeting with an insurance consultant, you may find someone who is more willing to give personalized service. You may not even know you needed it. Some benefits:

• Data. Not all agencies are created equal — some are more active in research and data, may be more up-to-date on the latest trends, and can better provide you with the advice you need to make informed decisions. Larger brokers may also have access to more similarly situated companies and they can give you compelling information on competitor offerings to help you close the gap in recruiting and retention challenges.
• Risk mitigation. Employee benefits consultants can help businesses design and implement employee benefits packages that meet their needs and attract top talent. They can also assess a business’s risk profile and recommend strategies for mitigating potential losses. An insurance broker can offer compliance consulting to ensure that businesses comply with all relevant insurance regulations, including those related to workers’ compensation, general liability and property insurance.
• Relationship and trust. Building a strong relationship and trust with a broker is essential. If you feel your current broker lacks transparency, integrity, or fails to understand your unique needs and goals, you may want to consider switching to an advisor who can establish a stronger partnership.

2. Better Services

Insurance brokers offer a wide range of services to their clients, often tailored to the specific needs of the business. Larger companies often have greater advantages. Here are some services that brokers may provide:

• Ancillary add-ons. You may already offer add-on benefits for employees or a discount marketplace with access to life insurance and pet insurance, but through an agency you might access travel protection coverage or mental health resources free of charge. Adding an employee assistance program may or may not impose an additional fee, but it can offer a wide range of useful tools and resources for your employees and their household.
• Subscriptions to HR resources. Many agencies offer subscriptions to HR resources and publications as part of their comprehensive service packages. This can provide clients with access to tools for employee onboarding, performance management, handbook and policy building, and even training.
• Payroll software implementation assistance. Agencies may partner with payroll software providers to offer seamless integration with their benefit plans. This can streamline processes like workers’ compensation premium calculations and reporting. Some brokers can also help businesses select the right payroll software based on their size, industry and specific needs. I once had a broker who had project managers help us explore which solution we needed, and could assist free of charge for an extended period — which was a huge cost savings for a small company that lacked the resources to invest the time needed.

It’s important to note that the specific services offered by agents can vary depending on their size, expertise and the needs of their clients. When selecting a broker or advisor, it’s essential to evaluate their experience, reputation and ability to meet your business’s unique requirements.

3. Better Support

Is your current broker communicating effectively and supporting your needs? A little pampering can go a long way. Some examples are:

• Claims management and assistance. Some consultants can assign dedicated claims representatives to handle insurance claims on behalf of their clients (fully or self-insured). These reps can help clients navigate the claims process, gather necessary documentation and advocate for fair settlements.
• Open enrollment and materials. There are many ways to provide materials and support during the elections process. If you had more assistance during this chaotic time of year creating materials like claim comparisons, summary plan description documents and meeting with employees, it can make all the difference in your own work-life balance.

Change the Status Quo

Assessing insurance agencies can be a great way to save money, get better coverage and get more personalized service. Even if you’re happy with your current broker, don’t be afraid to shop around. There are plenty of other agencies out there who would love to have your business and they might be better equipped to improve your status quo.