The world of employee insurance and benefits can be daunting – it’s easy to feel considerable pressure when you’re trying to choose the best carriers and plans for the employees at your company.
Brokers can be a key resource in this decision-making process, taking on much of the research and negotiation duties to help you find the best carriers and plans for your organization. However, there may come a time when you realize that the broker you partnered with is no longer the right fit for your company’s needs. While you may hesitate to make change for fear it will be a complicated process, making a move is not as hard as you may think. And it can pay dividends for you, your employees and your company.
Let’s demystify the process for changing benefits brokers:
Why make a change?
There are many reasons why a company may wish to switch brokers, but the common thread is that the service being given is no longer exactly what the organization and/or its employees need. Some catalysts for changing brokers include:
- Your company has undergone a significant change; for example, you just completed a big hiring period and you need an insurance plan designed for larger businesses.
- You want to offer a different benefits package, or add new types of benefits that your broker does not manage.
- Your company merged with another organization and is shifting its operations to a new industry with which your broker does not have experience.
- The service you are getting from your current broker is not meeting your expectations (i.e. lack of knowledge, poor communication, price increases).
These are just a few examples of why a company would want to change brokers. The bottom line is, it’s time to make a change.
Making the switch
Did you know that all you have to do to switch to a new benefits broker is submit a signed Broker of Record (BOR) form to each insurance carriers you work with? The BOR simply states that you have officially entered into a partnership with a new broker.
This is all that’s needed to be done to change brokers. You can keep your existing carrier plans. The BOR simply provides the new broker with the authority to mediate with your carriers, keep tabs on prices and consult with you on the best benefits package for your company based on your specific goals and objectives.
“A good broker will be able to hit the ground running with your company’s existing plans.“
As an added convenience, you can submit a BOR letter anytime, anywhere. You don’t need to wait until the start of the year or another specific timeframe to change your broker.
Going forward with a new broker
A good broker will be able to hit the ground running with your company’s existing plans and carriers. While you may have discussed strategic HR and company goals with your new broker in your early meetings, be sure to continue having these conversations about how the employee benefits and insurance plans align with larger strategy goals. Regular communication and check-ins with your broker can help establish a good working relationship and pave the way for future changes to your plans if necessary.
Selecting insurance plans and benefits for your employees can feel like an intimidating process, but the right broker will take the pressure off and help you make the best decisions for your organization. And when the best decision is to change your broker, you can do so seamlessly and efficiently.
Ready to talk to an experienced consultant about finding the right broker or making the switch? Contact us today.