Choosing an Insurance Broker

Choosing an Insurance Broker

2021-04-14T13:33:44+00:00 April 14th, 2021|Deal Flow, Deal Flow Articles|

By Ryan Olsen & Todd Smith

Selecting an insurance broker to partner with is about more than just hiring someone to handle your insurance. When you are choosing a broker, you need to look for someone who will approach the insurance marketplace with your best interests in mind and consider what is best for your business, not what is best for their own bottom line. Here are a few things you can look for in a broker that will help you evaluate whether they’re a good match for you.

Are They Transparent About Compensation?
Insurance brokers can be paid in a few different ways, and some brokers do not make a habit of clearly identifying their compensation to their clients. This can result in brokers who place their clients with carriers that pay the highest commission instead of carriers that will give their clients the best coverage within their budget.

Additionally, some brokers have one compensation structure they are willing to utilize, when different methods of compensation work for different organizations. This inflexibility usually benefits the broker, not their clients.

Look for a broker who is committed to complete transparency when it comes to their compensation and willing to work with you on determining which method of compensation will be most beneficial for both of you.

Do They Look for Innovative Solutions?
The insurance marketplace is changing all the time, and brokers have a lot of opportunities to provide their clients with new and innovative solutions to their insurance challenges. As with any other industry, there are brokers who prefer to continue doing things the old way, and there are brokers who look for opportunities to provide better coverage at a better price to their clients, even if it requires more work on their end.

Captives, direct contracting and creative risk management solutions are just some of the ways that brokers can create unique opportunities for their clients, and there are other unique solutions that may not have even been utilized yet. You should look for a broker who is not content with taking the easiest path and will work to find solutions that will benefit your unique organization.

Ask your potential brokers about innovative solutions that they have implemented and find one that has a demonstrable history of providing their clients with unique and innovative programs. Do they put a Premium on Employee Training and Education?

Once you have signed on with a broker, you will be dependent upon your account team to help you and your employees understand and navigate the complicated world of insurance, whether it’s employee benefits, property and casualty coverage, voluntary benefits or any of the other products you need to secure to protect your business.

A broker that truly values the service that their clients are getting will put a lot of emphasis on having highly trained and educated employees. The insurance industry is changing all the time: new products are being introduced, laws are being changed or done away with completely and you need an account ream that can ensure your insurance program doesn’t have any major coverage gaps in it. Your producers, account managers, and support teams need to be up-to-speed on what is happening in the industry and able to provide you with the right guidance when you need it most.

Before you decide to do business with a broker, ask them about what kind of training and education programs they provide employees and how they incentivize their employees to take advantage of those opportunities.

Moreton & Company: Trusted Since 1910
Moreton & Company is the intermountain west’s largest independent broker, and we started out 109 years ago with two employees. Since then, we have grown to over 200 employees in Utah, Idaho, and Colorado. We have dedicated Employee Benefits, Commercial, Personal Lines and Voluntary Benefits departments staffed by dedicated individuals who work tirelessly to provide our clients with superior customer service and innovative solutions to their most difficult insurance challenges.

We understand that each of our clients is unique and needs a broker partner who will get to know their business, understand their risks, and implement solutions that will help them protect and grow their business.

For our Employee Benefits clients, this means giving them access to Wellness, Underwriting, Online Enrollment and Compliance teams that can help them provide high-quality benefits to their employees and attract and retain top talent.

For our Commercial clients, we accomplish this by providing a full range of services in addition to insurance, including Risk Management, Safety & Loss Control, Claims, and more, because we realize that there is more to protecting your business than just insurance.

And for all of our clients, this means putting you and your business first and giving you the tools and protection you need to be successful.

About Ryan Olsen & Todd Smith
Ryan Olsen is the Executive Vice President at Moreton & Company. He has over 15 years of experience in the insurance industry as an insurance producer, a senior account executive, and a consultant, and has a strong background in agency operations.

Todd Smith is a member of the executive committee based out of Moreton & Company’s Salt Lake City office. He joined Moreton & Company in 1996 and he has been involved with many areas of Risk Management, including complex placements of large insurance contracts. His business development has evolved from trusted client relationships with a specific focus on risk assessment and proper risk transfer or alternative risk solutions.