Receiving Full Disclosure On Group Benefits Broker Compensation

Did you know that brokers have no obligation to disclose the compensation they are receiving for the Group Benefits plan they have implemented on behalf of their clients?

Unfortunately, it happens to be true. Fact is, there is no agreement in place in our industry for them to disclose compensation, so brokers are never held accountable, by regulation, for what they are earning.

Further, many organizations have no idea what amount of commission is being paid, or how to evaluate the return on that invested commission.

We believe it is time this changed. Some words of advice…

  1. Insist that your Group Benefits broker is 100% transparent about commissions. It should be an inherent part of your client/broker relationship. Ask for full disclosure of what you are paying for and have your broker write up a compensation agreement that identifies the elements. Both you and your broker should sign the agreement to demonstrate you are committed to doing things right.
  2. Part of the agreement should be a list of ways that the success of your Group Benefits plan will be evaluated. And the plan – and services received – should be evaluated annually.
  3. Evaluate the various elements of your Group Benefits plan at the same time each year. This is your opportunity to ensure you have the best plan possible in place. Ask your broker about the elements of the plan or services that have low ratings – and discuss what you both can do to improve them. Of course, also be sure to comment on the elements that are being handled well.

We at Thorpe Benefits have been 100% transparent about our commissions with all our clients since our inception. And it will continue to be the way we conduct our business, moving forward.  Let us know if you would like to see a sample of our client service agreement.