DAVISON BENEFITS GROUP, INC.
Employee Benefit Brokers & Consultants
Benefits are a "bid."
Unlike P&C, benefit proposals are not a competitive bid. Rates are based on factors such as demographics, claims experience, years with the same carrier, existing health conditions, and number of locations.
Changing carriers every year will ultimately put you in a corner where no carrier will even provide a quote. Their concern is that the group is not committed to a long-term relationship with a given carrier. Because carriers lose money on a first year case, they want the long-term relationship. The upfront expense in installing a new group is only recovered in future years on the books.
If you burn a market, you lose your desirability and will not get the most competitive rates. When there is more than one broker involved in a renewal process, you lose.
The goal is to make your program coveted by the carriers, so that, when you need the best rates and options, the carrier market takes the request seriously.
Carriers do not take repeated solicitations seriously because they know it is a rate shopping exercise; it makes you look bad, and it makes your broker look bad. You lose credibility.
The goal is to make your program coveted by the carriers, so that, when you need the best rates and options, the carrier market takes the request seriously.
Myths and Misconceptions vs.
Reality
Some Brokers Get a Better Deal
Not true. You will hear that certain brokers have a "preferred" status with carriers and that they get better rates than other brokers. Nope. Ask our consultants who came out of the carrier market. Ask the carriers!
Bundling Your Benefits with P&C Will Get you Better Rates
Hmmm. Different carriers, completely different programs. Why would your medical carrier care about what you are doing with your property & casualty insurance?
The "Money-Saving" Promise
Broker calls client saying, "We can save you money on your plans."
Better yet, the broker puts a number to it.
How can any broker say that without having intimate knowledge of your benefit spend, your plan design, your participation, and the contribution strategy?
Does that even make sense?!
