Spring 2008 / No. 75
Who is Minding the Customer?
We often hear carriers talk about the broker being their primary customer. That’s understandable considering that distribution is what drives the market and it is the scarcest commodity. Many carriers say they consider the employer and the employee to be secondary customers. Unfortunately, being secondary often means being all but ignored!
A recent review of carrier marketing practices in the voluntary market revealed that many carriers have no contact with their customers (other than sending a bill or processing a claim). In fact, many seem to feel that the employer and the employee are the broker’s customer, and that they (as the carrier) can’t or shouldn’t interact with the customer. Most carriers don’t communicate directly with their customers and actually encourage customers to first go to their broker with questions as opposed to the home office. There is almost no ongoing marketing to existing customers. Because of this, there is little to no chance of the two parties building a relationship. This means the carrier’s relationship with the employer and employee—and possibly the retention of those customers—is left primarily in the broker’s hands.
Indeed, carriers seem to believe that any efforts to talk to the employer or employee would be viewed by the broker as “going direct” and competing with them. While we all need to be sensitive to the broker’s needs and preferences, there is a wide range of possibilities between “replacing” a broker with the customer and putting our heads in the sand and ignoring them. We believe that carriers should not consider any efforts on their part to market to employers and employees in conflict with their commitment to the broker market. Such carrier efforts can be “broker-friendly” and allow the carrier to help themselves and their brokers.
For more information on how to develop programs that enhance the overall relationship between the client, the broker, and the carrier, call us or email us.
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