A major trend in the insurance industry, and the worksite segment specifically, is the consolidation of carriers. Seemingly, the larger ones are gobbling up a host of smaller –and often very efficient — carriers. In fact, there's a pretty good chance that at least one carrier a broker deals with has been consumed.

Frequently, the acquiring carrier has little experience or understanding of the market segment they've just entered and dealing with the inevitable changes that occur with such mergers remain a challenge that we in the brokerage community need to tackle ourselves. Operating under the philosophy that we want to be true partners with our carriers, it's imperative we as a community be clear and precise on what we need from a carrier to continue our relationship. Rather than allow the new carrier to dictate to us, their revenue source, the terms and conditions, we need to work with them to help them provide the systems, tools, and products we need to work together for our mutual success. This way we can provide our clients the best service and products possible to help them meet their needs.

That said, approaching the new carrier individually, while important, may not be as effective as approaching them in mass as one voice. A couple of million dollars of production here in there should be listened to, but tens of millions of production cannot be ignored.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.