Agent of Record

Rockie

When negotiating for insurance rates, I have run into brokers wanting an "agent of record" letter so they can negotiate on the company's behalf.

Evidently, some insurance companies are insisting the agents provide this letter so they will not be negotiating with several different brokers for the same business.

Have any of you run into this issue?

Catbert46

Yes, it is a typical problem. What I have done is limit the number of brokers working on my behalf and giving specific Agent of Record letters for the various insurance companies. If my current broker goes to BCBS first then he/she gets that quote. If the second broker is the first to approach Cigna, then they get that quote. More than 2 brokers and your just asking for a headache. There are a limited number of insurance providers that will be able to give you a competitive quote, so it is a lot easier to work with just a couple. I have limited to my current broker unless I had issues with the service they provided the past year. The broker you choose does make a difference.

Good luck!

hrdilemma

I have the same thing here in ARKANSAS. The key is to select the right broker who will work hard for you, give you the best service and deepest discount on their fees. This will be where the savings generally will be if the brokers have quoted apples to apples.

If there is some other large variance then typically an in depth look will show copay differences, minor services not included like air ambulance or other specific coverages for types of medical professionals, supplies etc. Other than that the only other major cost controls are # of EE's in what class of coverage, deductibles, maximum out of pocket dollars, maximum lifetime amounts, coinsurance, copays and drug cards. We only work with 2-3 brokers so we can pull in HSA plans, self/partial insured plans as well and government funded plans.