INSURANCE
Best practices for using an insurance broker
management requirements, and ever-increasing demand to reduce costs, a fresh approach to insur- ance broker management may be beneficial. As intermediaries between cus- tomers and insurance companies, brokers play a crucial role in guiding clients to the best policies that meet their needs. Brokers’ performance directly impacts insurance contract performance, stakeholder satis- faction with insurance, and, most importantly, your risk management strategy. Insurance can be complex, with a wide variety of policies, provid- ers, and fine print that can easily
information helps the broker tailor coverage that fits you best. Don’t hesitate to ask your broker to explain: • Coverage details and exclusions. • Policy limits and deductibles. • How premiums are calculated. • Claims processes and timelines. • Loss prevention and safety training. A good broker should translate insurance jargon into plain language and ensure you’re comfortable with the policy you’re purchasing. Lever- age commercial insurance technolo- gy to streamline administrative tasks and enhance broker productivity. Implement Risk Management Infor- mation Systems (RMIS) to manage claim interactions and track policy renewals. Evaluate innovative risk management software that can convert traditional static insurance documents into interactive dash- boards and visualization tools. Design a fee compensation structure that rewards highly per- forming brokers. Though brokers are traditionally compensated by commissions, performance-based bonuses and recognition programs should be considered to motivate brokers to achieve their targets. Ensure that the incentive plans are fair and transparent. Conclusion An insurance broker can be a valuable ally in navigating the world of insurance. Use these best practices to build a relationship with your broker that’s based on trust, transparency, and long-term value. By selecting the right broker, communicating clearly, asking questions, and staying engaged, you can ensure that your coverage truly matches your needs – both today and in the future. Promote a culture of teamwork and collaboration with your brokers. Insist that brokers share best practices and foster open communication channels. Regular team meetings and brainstorming sessions can help all parties learn and stay ahead of any issues that may arise. Effective management of insurance broker relationships is crucial for risk management suc- cess. By setting clear expectations, providing continuous training, fostering collaboration, leveraging technology, and incentivizing per- formance, insurance buyers can ensure that their brokers deliver best in class service to clients. Spencer Macalaster is the executive vice president at Risk Strategies Co., Boston, Mass.
overwhelm even the most informed consumer. When seeking the best most cost-effective coverage for your business, working with an insurance broker can simplify the process and help you make informed decisions. However, to truly benefit from the expertise of a broker, it’s essential to approach the relation- ship strategically. Here are some best practices to follow when working with an insurance broker: Unlike insurance “agents” who typically represent a single insurer, brokers act independently and work on your behalf. Their role is to assess your needs, research options across
multiple carriers, and recommend policies that offer the best coverage and value. Not all brokers are created equal. Choose a broker who: • Specializes in your business. • Has a solid reputation and client references. • Demonstrates clear communi- cation and responsiveness. • Brokers can only find the best policy if they understand your spe- cific circumstances. Be transparent about: • Your exposure. • Any existing policies. • Your risk tolerance. • Providing complete and honest
Spencer Macalaster Risk Strategies Co.
Managing insurance broker rela- tionships effectively is paramount to ensuring a successful and sustain- able insurance risk management strategy. Historically, a risk manager may utilize the request for proposal (RFP) or some other competition to allow for the best choice when evaluation the broker options. With the ever-increasing number of insurance broker consolidations, broker staff changes, carrier risk
R ESIDENTIAL COMMERCIAL ASSISTED LIVING DEVELOPMENT
For more information about Risk Strategies and our insurance solutions, contact Spencer Macalaster at 617.330.5705 or smacalaster@risk-strategies.com
www.RiskStrategies.com www.RiskStrategies.com
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