NASHVILLE, TN – March 23, 2022 – Mployer Advisor, the leading independent platform for employers to research, review and evaluate insurance brokers, today released the findings of its “Employer Feedback on Broker Fee Disclosures and New Transparency” survey. On December 27, 2021, landmark industry legislation under the No Surprises Act went into effect that requires insurance brokers and advisors to disclose direct and indirect fees and compensation to employers.
“The legislation is a great step forward for the industry, including employers, employees and top insurance brokers and advisors,” said Brian Freeman, the Founder and CEO of Mployer Advisor. “This lifts up the entire industry and creates more trust and alignment.”
Brokers and insurance advisors received limited guidance and a short timeframe to comply. To better understand broker implementation, compliance and employer feedback, Mployer Advisor commissioned a survey to employers nationwide.
The independent, third-party survey revealed that the industry is slowly beginning to implement the newly mandated requirements. However, incorporating this new step into standard practice for brokers, in addition to providing ongoing employer interpretation and training, will take time. The survey also identified some areas of improvement for employee benefits brokers and provided insights into how employers select their brokers.
When employer respondents were asked if “they received additional fee disclosure forms from their employee benefits broker due to the new legislation that went into effect on (1/1/22),” a majority (62%) said “yes.” When asked, “Did your employee benefits broker talk to you about it or offer to review the new disclosures with you?” a majority (64%) said “yes.” In general, the survey highlighted that communication between brokers and employers (as well as human resource managers) was on par.
However, when asked, “Did the fees surprise you?” more than half (53%) said “yes.” When asked, “Did you know you’re liable as a fiduciary?” close to half of the respondents (46%) said “no.”
Client satisfaction and transparency are two non-negotiable factors when it comes to broker communication and trust.
When asked, “Are you satisfied with how your broker has communicated these new changes?” more than one-third (37%) said “no.” Of the respondents that took the survey, just a little over a half (55%) said they either “completely understood” or “somewhat understood” the new fee disclosures.
Overall, when asked, “How did you find your current broker?” the most-used method was “online” (32%), followed by “inherited insurance broker when you joined your current company” (29%), and then “referral” and “friends or family” (21%). Over half of all new employer and broker connections are found through online research.
“This survey underscores the need for more education, transparency, and trust between employers and employee benefits brokers,” Freeman said. “In today’s digital economy, deciding on which broker to partner with should be an open, easy, and financially beneficial decision, but it is not. More work still needs to be done among employers and top insurance brokers and advisors alike to continue to elevate the credibility and trust of the benefits broker industry at large.”
To view Mployer Advisor’s white paper on the survey results, click here.
Commissioned by Mployer Advisor, the “Employer Feedback on Broker Fee Disclosures and New Transparency” survey was conducted by SurveyMonkey on January 24, 2022. Feedback was obtained from respondents whose companies offer employee benefits and are familiar with the execution or administration of their company’s employee benefits.
To learn more about SurveyMonkey’s methodology, click here.
Mployer Advisor is changing the way employers search, evaluate and select insurance advisors. The intuitive platform connects employers and employees to exceptional benefits and insurance plans by providing employers with actionable data to easily evaluate and select the best advisor for a company’s specific needs. Most brokerages have a profile on Mployer Advisor, which provides independent ratings of insurance advisors to support employers. Insurance brokers cannot pay to influence their Mployer Advisor rating. Only highly rated brokerages are allowed to advertise on the platform. To learn more about Mployer Advisor, visit https://mployeradvisor.com or follow us on LinkedIn.
Jacob Westfall (Public Relations Consultant)
Jacob.Westfall@mployeradvisor.com
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