As a Health insurance Broker, your main goal is to help Groups find health care plans that fit each of their Employee’s unique needs. Many Employers: however, aren’t fully aware of how working with a Broker will benefit them. In fact, because of a few common misconceptions about how insurance Brokers operate, some Groups hesitate to work with a professional Broker out of fear that they will end up paying too much for their policies or getting the wrong coverage.
To effectively onboard new Groups and enroll more Employees, it is important to familiarize yourself with common myths and misconceptions they may have about working with an insurance Broker. When you address these concerns early on, you can expedite your sales process and quote more business.
Myth #1: Groups have to pay a commission when they get health insurance through a Broker.
It is a common misconception that Groups must pay a commission when they use a health insurance Broker. You will want to explain to potential Groups that they do not owe their Broker any kind of compensation before, during or after their enrollment process.
You will want to articulate to potential client’s that when an individual enrolls in a health insurance plan, the Broker who helped them find that policy is paid a commission by the insurance Carrier. They themselves owe the Broker nothing. Most people do not know that your payment comes out of premiums charged to policyholders by the Carrier. It is worth noting that whether they used a Broker or not, an individual’s premium payment will always be the exact same amount.
If you have a new Group that is considering working with a Broker such as yourself, you will want to make sure they understand that even though Brokers are paid by the insurance company, that does not mean you work for these companies. As you know, Brokers are free entities who use their industry expertise and resources to help Groups compare plans from multiple providers to find applicable policies. Articulating this to potential clients will help them feel more comfortable about how you are compensated.
You can provide your Groups with a compensation disclosure statement that summarizes the types of commissions you receive from different Carriers. This document will explain to your Groups how you are paid in an effort to clear up any compensation confusion or misconceptions.
Key Takeaway: Groups do not pay their Broker a commission. Instead, they pay their annual premium, and the Carrier will then pass a percentage of that payment onto the Broker. Since the Carrier covers a Broker’s commission fee, the price of an individual’s plan is the same whether they use an agent or not.
Myth #2: Groups are Better Off Buying Directly from the Insurance Carrier Because Brokers Are Just Middlemen.
Many individuals believe that if they get health insurance directly from the insurance company, it will save them money. As a Broker, you know this isn’t the case. Make sure new clients understand that there is no “middleman markup” when they work with you. In fact, it may be helpful to explain that more often than not they will end up paying the exact same price whether they purchase an insurance plan through you or directly from the Carrier. The only real difference between these options will be the amount of time they spent trying to find their own policy.
There are several advantages to working with a qualified Broker that can be emphasized in your sales process. For one, individuals get a personalized approach to finding the policy that is right for them. As a professional Broker, you are able to listen to your client’s needs and are able to take their unique health, finances, lifestyle and goals into consideration when looking for an optimal insurance plan. Once you find a policy that fits someone’s criteria, you can then thoroughly walk that individual through the policy benefits, application and enrollment process to make sure everyone is on the same page.
Another benefit of working with a Broker is that Groups can utilize your industry expertise to take any doubt or confusion out of the process of finding the right policy. It is important to offer Groups knowledge, attention and service that they can’t get when communicating directly with a Carrier.
For many, health insurance can be incredibly complex, especially when it comes to keeping up with state and federal laws and regulations. Working with someone who understands the rules and knows how to navigate the market can make the entire process significantly less stressful for both Groups and Employees.
Key Takeaway: There is no financial disadvantage to working with a certified insurance Broker. Instead, they offer valuable insight that can help Groups better understand their options and how to choose a policy that fits their specific needs.
Myth #3: Insurance Brokers sell Groups something and then completely forget about them.
For Insurance Brokers, the job is all about forming long-term, positive relationships with Groups. When you find a plan that works for your client, you know that is just the first step. A good Broker will explain to their client that they will continue to help maintain their current plan as well as future policies by:
Continually assessing their needs to make sure their plan still makes the most sense for their lifestyle and goals.
Staying on top of any qualifying life events that may affect their policy.
Helping them navigate insurance claims, services, and regulations.
Helping them make any necessary changes to their account, such as updating contact information or adjusting dependents.
Key Takeaway: An individual’s relationship with their health insurance Broker doesn’t end once they have successfully enrolled in an insurance plan. Brokers remain a continual resource for information, support, and maintenance of current and future policies.
How Brokers Can Help Their Groups
When Brokers utilize the latest technology to streamline their quote-to-close process, it can help alleviate any confusion or frustration their client may be experiencing while navigating health insurance enrollment. FormFire’s “all-in-one-place” software for collecting medical information, pulling rates from Carriers and presenting quotes helps address and eliminate these common pain points associated with selling Group benefits.
From getting a quote, to getting enrolled, to ongoing group management, FormFire offers a single, flexible system. To learn how you can streamline your selling process, contact us, or book a free demo.