Bandits of Group Benefits
by atr benefitsĀ
atr Benefits has been a partner with its clients in delivering over $280,000,000 worth of benefit plans.
Here are 3 bandits we've seen destroy plans:
The Context: Okay, the question is, what are the ways group benefit plans slowly erode? I had that question because of the book I was reading, The Wise Man's Fear by Patrick Rothfuss. I'll just read a bit of it, give you a bit of context.
"He gave me a sour smile. 'I suppose you've heard the trouble on the roads of late?' 'Only rumors, Your Grace.'
He snorted. 'Rumors I've been trying to keep quiet. Someone has been waylaying my tax collectors on the north road.'
That was serious. 'How much have they managed to take?'
He gave me a stern look. 'Enough. More than enough. This is the fourth I've had gone missing. Over half my northern tax is taken by highwaymen.'
Then he said, 'Death is the penalty for banditry, especially on the King's Highway. Does that seem harsh to you?'
'Not in the least,' I said, looking him squarely in the eye.
'Safe roads are the bones of civilization.'
Then he said, 'I need someone to lead them, someone I can trust.'
I felt a sudden sinking sensation. Alveron got to his feet, smiling warmly.
'Twice now you've served me beyond all expectations. Are you familiar with the expression, the third pays for all?' Again, there is only one reasonable answer to that question.
'Yes, Your Grace.'"
Are brokers protectors or thieves?
We, the brokers, we control the flow of the benefits from the employers and the employees to the insurance carriers. We are both the protectors of the King's Highway and the bandits and the thieves, ideally more on the protector side. But these are three ways we allow plans to erode:
1. The first is double-digit renewals.
Part of this is the cost of living just going up, and part of it is a lack of effort by the broker to look at the market, or to at least negotiate the rates with your current provider.
[Image: line chart, "Compound Inflation Rate"]
2. Group Retirement Saving Plans
Brokers make a ridiculous amount of money behind the scenes that no one really knows about. This means less money compounds for the members. Make sure your broker charges a flat fee.
3. Bonuses and incentive structures
Brokers are paid massively by the insurance companies to send business to them, even if it's not the best deal for the client. That's why it's always best to shop the entire market and show the client all of the rates from all of the carriers.
atr Benefits
5320 7005 Fairmont Drive SE | Calgary, AB | T2H 0K4
Group Benefits That Protect Your People and Your Budget
Optimize your employee benefits plan before your next renewal.
We helpĀ Alberta companies with 20+ employees reduce unnecessary benefits costs, improve plan design, and add better protection for employees without blindly cutting coverage.
Book a benefits optimization review.Ā
No obligation. No pressure to switch brokers.
