Factors to Consider While Choosing a Group Dental Broker
One of the most important decisions an employer has to take with regards to the group dental insurance coverage for their employees is choosing a group dental broker or agent. However, surprisingly, many employers don’t take this decision very seriously, relying on just a personal source or subjective recommendations, which usually lead to a wrong choice.
With that being said, let’s take a look at some of the important factors involved when it comes to choosing the right insurance broker for your business.
Type of Agent/Broker
One of the most important factors is the type of agent/broker to go with. When it comes to agents, there are usually two types, independent agents and the ones working as an employee for an insurance company.
The first type, as the name suggests, aren’t an employee of any particular insurance company, but usually an insurance agency, which typically has access to many different insurance providers. However, they may not have access to ALL insurance companies, though some of them may exaggerate on this front.
On the other hand, agents working for direct-writing insurance companies obviously have access to only the company they are working for. This means very limited choices when it comes to the insurance plans, and usually few to no alternatives if the plan doesn’t fit your needs.
An insurance broker, however, is a licensed insurance producer who isn’t allowed to sell insurance plans offered by a company that their agency has a contract with. The difference between an agent and a broker is quite technical, and usually agents may call themselves both an agent and a broker.
Many states have even done away with the distinction, calling both agents and brokers as insurance producers.
Evaluating the Knowledge
Choosing the right group dental broker or agent isn’t about finding the lowest price or a broker that you’re very familiar with. Making sure the broker is actually knowledgeable enough can be very challenging, especially given that the licensing requirements in most states require a bare minimum of insurance knowledge.
While asking for professional designations such as the CIC or CPCU may help, they cannot be considered absolute either. A professional designation other than such typical ones, however, is one of the few things that may help you get a fair idea of the broker’s insurance knowledge.
Finally, you may want to ask them to submit their resumes or CVs (to check whether they are just good salesman or experienced insurance producers too), as well as about the last insurance book he or she read or the seminar they attended.
A Detailed Written Proposal is Important
Although it may seem obvious, some employers still don’t bother ensuring that the proposal they receive from their broker is detailed enough, The written proposal should just not mention the cost, but all the other important details too, such as coverage, limits, sales, and rate, just to name a few.
Also, ask the broker to not just quote the coverage off your old dental insurance plan, but to come up with suggestions, alternatives and improvements.