There are three types of brokers: the transactional broker, the Zenefits-style broker and the new school premier broker — but soon only one of them will be successful.
The old school broker is transactional in nature and renewal-centric, said Ernie Harris, executive vice president of Maestro Health, at the Private Healthcare Exchanges conference in Chicago recently. These brokers have been in business 15-20 years, “get a case, get a commission check, and then don’t do much,” Harris said.
But the market is changing for HR departments seeking brokers who do more than show up every 364 and a half days to tell them a year-over-year health plan increase and get a signature, Harris adds.
“These [brokers] are quickly fading out, I think two years from now I don’t need to acquire another brokerage but can go out and get them at zero cost,” he adds about those transactional brokers.
The relationship aspect of being a broker is not going to remain. “You need to create solutions and give value,” said Russ Carpentieri, managing director of Purchase, N.Y.-based Opus Advisory Group, at the conference sponsored by Employee Benefit Adviser. He said he has been getting calls from folks who have had the same broker for 20 years but now believe they are not receiving value.
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