We are going to let you in on a big secret – your insurance carrier has probably trained you to fear the process.
The insurance industry wants to have control, and they want to control the playing field. And, the insurance system has literally stacked the deck against you as a business owner.
One way in which this is done is Insurance Agencies are paid well by the carriers. Agencies receive commissions, as well as retention bonuses, and contingency income. Now, that is a typical practice, not exclusive to insurance, and there is nothing wrong with paying someone a retention bonus or paying a company a contingency. The problem we see in our world (yes, we are an insurance agency) is that when those incentives aren’t disclosed an agency or agent may not act in the client’s best interest. Traditional agencies and agents are more focused on the bottom line than being Driven Together™ with their clients. It comes back to who is controlling the process (the carrier).
It’s Not Your Fault
So many businesses need help figuring out what to ask because they’re overwhelmed and have so many things going on in their day-to-day. We often hear business owners, CFOs, and HR Executives say, “I don’t even know what questions I should be asking!”.
Sometimes, there is a fear of asking for documentation. I had an HR manager tell me, “I’ve developed a good relationship. I don’t want to ask for my claims information because I could disrupt the relationship.”
Are you kidding me? It’s your claims information!
If the carriers create that fear so that a paying client can’t ask questions, they have control. And they’re charging too much.
Insurance brokers must take a proactive stance for their clients and advocate for them to these carriers. Nine out of 10 agents are not proactive and don’t offer their clients any checkups throughout the year, so things can get out of control. Sadly, insurance agents have been conditioned to be reactive: show up, throw up, and expect to get paid.
Think about it. You wouldn’t buy a piece of machinery and not ask detailed questions. You would get a demo! If something didn’t work properly or if you had concerns about the function of the machinery, you would definitely ask questions! It shouldn’t be any different with your employee benefits, especially because it is most likely one of the Top 3 expenses you have at your company.
At Cogent, we are positively disrupting that old model and helping businesses gain control of their healthcare benefits costs. Our purpose is to shed a light on these dark industry secrets and improve our clients’ Enterprise Value. We expect to be held accountable, or we shouldn’t be their advisor.
To learn about the different healthcare plan options that are available to your business, contact Cogent Advisors. We promise it will be worth your time to learn more about how you can take back charge and control your healthcare costs.