You may have been working with the same agent for many years and are curious to see what other options you have that might result in premium savings, substantial coverage improvements, or game changing value added services. Or you may have asked multiple brokers to quote your insurance in the past and were frustrated with the process, but know at some point you will have to go through the exercise again. Because not all brokers are created equally, they are not commodities, it is important to manage the process in a way that serves your company’s best interests.
Consider some of the reasons why you should shop for other options, and you will know whether it is time to seek quotes from multiple brokers.
Two Ways to Get Multiple Quotes
If you are committed to seeking quotes from multiple brokers, we recommend you do it strategically. There are two commonly utilized methods. To make it easier to understand, think of it like you are the commissioner of a football league where the teams are the insurance brokers and the players are the insurance carriers. Your challenge is to figure out the best way to divide up the best players (insurance carriers) evenly amongst the competing teams (insurance brokers) in your league so that there is true competition.
1. Free-For-All Approach
This is the most commonly utilized method, because it takes the least time. In this approach, you don’t influence which carriers are accessed by which brokers, essentially whichever broker submits an application to a carrier first, gets that carrier on their team. For many reasons, it almost never occurs that all the brokers are submitting the market simultaneously. Therefore, one broker ends up having all the best carriers on their team.
Even though this the least time-consuming method at the outset of the quoting process, we don’t endorse it. Instead of selecting a broker based on their knowledge, skill, value added services, creativity, and personality fit with your organization, the entire endeavor is reduced to a game of chance, about who was in the right place at the right time.
2. Market Assignment Approach
This approach takes a little more time but yields the best results. Similar to a football league draft, you request that each team (broker) provide a prioritized list of carriers (players). Then, as the commissioner of your league, you assign the carriers to each broker as you see fit.
Not only is this approach a great way to make things truly competitive, but it also lets you prioritize the brokers you have the best relationships with or feel have additional skills or services. The alternative free for all method, can commonly result in the least qualified broker receiving the best quotes.
The End Goal
Seeking quotes from multiple brokers can be a healthy practice intermittently. If you are using this method at every insurance renewal, you probably have not found the right insurance broker. We firmly believe the single broker is the best for your business. Having a trusted relationship with a single broker ultimately allows them to assess your business’s unique risks over time and develop a matching coverage plan. The multiple broker quoting method is recommended when you are in the process of finding that trusted relationship.
Find out how we are different.
At Swarts, Manning & Associates, we are proud to say that we have long standing relationships with the great majority of our clients. This is because we are more than just insurance brokers, we are insurance design specialists. This enables us to give you a unique perspective on your coverage options and provide input on what carrier best fits your insurance type and your individual business need.
Our insurance design specialists are currently offering a complimentary call to discuss the specific situation.
Get started by filling out your contact information here or give us a call right now at (833) 878-2820.
Swarts, Manning & Associates covers relevant topics for your business weekly. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
