Many businesses believe they will get the best pricing on their insurance products by involving multiple agents/brokers in a “bidding” situation. While this sounds logical, taking this approach has the opposite effect.  To dispel The Myth of Multiple Brokers it is important to understand how the employee benefits industry operates.

Within the Health Insurance Industry, a quality agent/broker can access any insurance carrier on your behalf as there is no market exclusivity. The use of more than one agent/broker results in multiple Requests For Proposals (RFP’s) often from the same insurance carrier. This creates doubt for an underwriter about which broker gives them the best chance of earning your business. As a result they usually hedge their bets and issue generic, identical proposals for all brokers. The use of multiple agents/brokers can actually have a negative effect on your efforts.

Make the Selection of your Agent/Broker a Separate Decision.

To negotiate the best-priced, best–valued insurance program, make the selection of your agent/broker first. With health premiums increasing every year, premiums driven by risk and claims history, agents/brokers need to provide you with additional resources to help make better decisions, provide long-term strategies for your plan designs, and offer the necessary components to manage your program. A comprehensive approach, education, and communication are paramount to controlling your health insurance costs.