Employee Benefits Consultants are paid by the insurance companies. I offer complimentary quotes on setting up new plans or revising existing plans.
Claims this year will determine your premiums for next year.
Points to consider:
Your Employee Benefit Consultant should be truly independent. To achieve the best rates possible make sure you consultant shops around for the best rates from the insurance companies. It is a competitive industry and many companies are looking for new business.
At time of renewal your Employee Benefits Consultant should be negotiating the best possible renewal rates on your behalf. It is not your responsibility to meet with insurance companies, your consultant should meet with you 3 times/year to review claim experience reports on how your plan is being used. This will be useful in the negotiation process.
Has your Employee Benefits Consultant taken your plan to “market” recently?. This is when your consultant shops for comparative quotes from other insurance companies. This should be done every 2-3 years, it doesn’t mean you change insurance companies but instead it ensures your rates are current and competitive.
Do you know how your Employee Benefit Consultant gets paid? Make sure you know if you are paying a commission on a flat or graded scale and if any additional consulting fees are added.