Three Reasons Benefits Brokers Hoard Renewal Information
Renewal time comes with a lot of pressure. You want to provide your employees with the best benefits your organization can afford, but each year there is a fear of a high renewal increase that can put pressure on budgets.
Getting renewal information back can be daunting – especially if the news isn’t good. But benefits administrators, CFOs, and owners need that information to strategically plan for the year ahead – and they need it sooner than later. You know this. Your leadership team knows this. And your broker knows this.
So why do brokers often wait until the last minute to send their clients over renewal information? Unfortunately, this is a common tactic many brokers, large and small, use to pigeonhole their client during renewal season.
Why is my benefits broker hoarding my renewal information?
Here are three reasons why your benefits broker may be keeping renewal information from you.
Laziness
It’s unfortunate, but some consultants don’t want the hassle. Whether there is a significant rate increase or not, some consultants would rather not go through the effort of shopping for new options, especially if there is a chance you’ll decide to stick with your current carrier – or they want to avoid the potential of having to do more onboarding work if you do decide to switch.
Keeping out the competition
There’s no law that states you can’t share your renewal information with other consultants once it’s in your hands. When consultants sense that you may be looking elsewhere, they may withhold renewal information until it is too late for you to sign another AOR. It’s suspicious, but it happens!
Incentives from your current carrier
Sometimes, consultants may have agreements that incentivize them to stick with your current carrier. This can make them reluctant to share renewal information, especially if there's a rate increase.
In essence, hoarding a renewal is a defensive tactic. It's a way for brokers to keep you as their client while minimizing the extra effort they need to put in to do so, giving you only a small window to make crucial employee benefit decisions.
How to Stop Your Broker from Hoarding Your Renewal Information
The best way to prepare for an employee benefits renewal is to start early. If your renewal is three months away and your broker hasn’t reached out to you with options, take matters into your own hands and reach out to them, giving them very specific requests and deadlines. If they fail to meet those requirements, it may be time to consider switching to a new partner.
Working with an Employee Benefits Consultant
When working with a standard benefits broker, you are typically in a pool of clients under the head producer’s umbrella. Larger firms have the bandwidth and capability to support your organization but tend to be more concerned with pushing insurance products rather than consulting you on what’s best for your benefits needs. On the contrary, smaller brokers can easily set you up with a great plan to start, but often lack the resources to provide year-round guidance.
When you work with an employee benefits consultant firm, you get the best of both worlds with a team with the capability and knowledge to support your benefits needs year-round. Instead of being under one person’s umbrella, you receive a dedicated advisor and benefits advocate who work with you directly, giving you and your employees an open stream of communication year-round.
At Caravus, we have provided our clients throughout the Midwest and beyond with this level of service for over 40 years – no renewal hoarding necessary!
If you feel like your broker has been hoarding renewal information, we’d love to speak with you. For more information, visit www.caravus.com/contact-us.