Introduction. Table of Contents

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2 Introduction The 2014 Broker Services Survey Results provide a snapshot of the evolving nature of the broker-client relationship. While key findings from the survey are fairly consistent with last year s results, many trends continue to grow and be reinforced as the insurance landscape is reshaped by legislation and technology. Top criteria used in selecting a broker include the nature of the broker-client relationship, fostered in large part by regular communication. Nearly 4 in 10 clients want to hear from their brokers every month, while one-fifth would prefer weekly conversations. Other highly valued selection criteria include the broker s ability to negotiate renewal, compliance support and legislative updates. The most important services a property and casualty broker can provide are prompt delivery of certificates and ID cards, policy-shaping guidance and a keen understanding of how the industry operates. Services that clients say are rarely offered include help with Safety Data Sheets and mobile device accessibility. For employee benefits clients, by far the most important services brokers can offer are Affordable Care Act updates and information about other compliance-related questions. The 2014 Broker Services Survey was conducted in early 2014 and was available to individuals through client portal websites. A total of 3,275 respondents completed the survey. Table of Contents Demographics...3 What Clients Value From Their Brokers...4 Challenges...10 Communication Broker Services Survey Results 2

3 Demographics This survey was completed by employers in all 50 states and the District of Columbia. The overwhelming majority of survey respondents were from organizations employing fewer than 500 employees. In which region is your organization based? 7% 10% 9% 13% 17% 11% 16% 12% 5% How many employees does your organization employ? In which industry/sector does your organization operate? What job title most applies to your position? 2014 Broker Services Survey Results 3

4 What Clients Value from Their Brokers At least 75 percent of survey respondents indicated that they look for solid relationships, regular communication and swift service when selecting a broker. Other criteria highly valued by clients include the broker serving an advisory role (72 percent), the ability to negotiate renewal (70 percent), competitive pricing and help with regulatory compliance (69 percent each). Dissatisfaction with timeliness was found to be the number one reason clients will change brokers. Roughly one-fifth of all clients have changed brokers in the past three years. Despite the fact that timely delivery of certificates of insurance and ID cards was the single most important service for property and casualty clients, 27 percent of respondents said they are not being provided with or are only partially provided with that service. Similarly, 28 percent of respondents said they were not provided with or were only partially provided with answers to compliance-related questions, the overall most important benefits issue. What criteria do you use in selecting a broker? 2014 Broker Services Survey Results 4

5 What are the three main factors that would lead you to make a change in brokers? Have you made a change in your property and casualty broker in the last three years? Have you made a change in your benefits broker in the last three years? 81% No Yes 19% 2014 Broker Services Survey Results 5

6 Please tell us the importance level you attribute to the following property and casualty services. Very Slightly Not Rating Average* Timely delivery of certificates of insurance and ID cards 66% 30% 4% 2.72 Has coverage and policy language expertise 23% 42% 35% 2.7 Has a thorough understanding of our company s business 37% 40% 23% 2.68 Helps our organization become a more educated insurance buyer 65% 28% 7% 2.62 Provides claims submission support 40% 44% 16% 2.58 Proactively provides regulatory and legislative updates 60% 32% 8% 2.55 Delivers information that will help reduce the frequency and expense of claims 22% 43% 36% 2.52 Provides total cost of risk information 76% 20% 4% 2.51 Offers ability to report claims online and track claims activity 26% 48% 27% 2.34 Provides employee-focused health and safety information 41% 45% 14% 2.27 Uses technology to help analyze claim activity and identify root causes 61% 33% 6% 2.23 Provides access to OSHA compliance information and recordkeeping tools 33% 39% 29% 2.14 Provides an annual stewardship report outlining the services offered throughout the year 24% 43% 33% 2.13 Offers assistance in documenting, reporting and tracking workplace incidents 33% 46% 20% 2.13 Assists us in creating or maintaining a workplace safety program 74% 22% 4% 2.04 Provides our company with certificate tracking tools 72% 25% 3% 1.99 Helps design and support our return to work programs 59% 32% 8% 1.92 Offers content designed to educate both employers and employees in video format 47% 40% 13% 1.9 Assists in creation, review and update of our Employee Safety Manual 37% 40% 24% 1.88 Makes employee safety training videos available 25% 42% 33% 1.86 Provides easy access to all resources and services on a mobile device 15% 37% 48% 1.68 Helps manage our Safety Data Sheets (SDS) 15% 38% 47% Broker Services Survey Results 6

7 Please tell us whether your property and casualty (commercial, workers compensation) broker is providing these services or expertise. Provides Partially Provides Does Not Provide Timely delivery of certificates of insurance and ID cards 73% 18% 9% Has coverage and policy language expertise 71% 22% 7% Has a thorough understanding of our company s business 69% 25% 6% Helps our organization become a more educated insurance buyer 61% 29% 10% Provides claims submission support 59% 27% 13% Proactively provides regulatory and legislative updates 47% 34% 19% Delivers information that will help reduce the frequency and expense of claims 41% 35% 24% Provides total cost of risk information 53% 33% 14% Offers ability to report claims online and track claims activity 44% 30% 26% Provides employee-focused health and safety information 35% 36% 30% Uses technology to help analyze claim activity and identify root causes 37% 35% 28% Provides access to OSHA compliance information and recordkeeping tools 33% 31% 36% Provides an annual stewardship report outlining the services offered throughout the year 35% 32% 32% Offers assistance in documenting, reporting and tracking workplace incidents 41% 31% 28% Assists us in creating or maintaining a workplace safety program 28% 31% 41% Provides our company with certificate tracking tools 31% 32% 37% Helps design and support our return to work programs 24% 30% 46% Offers content designed to educate both employers and employees in video format 24% 27% 48% Assists in creation, review and update of our Employee Safety Manual 22% 28% 50% Makes employee safety training videos available 26% 27% 47% Provides easy access to all resources and services on a mobile device 18% 26% 55% Helps manage our Safety Data Sheets (SDS) 15% 24% 61% 2014 Broker Services Survey Results 7

8 Please tell us the importance level you attribute to the following employee benefit services. Very Slightly Not Rating Average* Answers our compliance-related questions (PPACA, COBRA, FMLA, HIPAA, etc.) 40% 44% 16% 2.78 Provides updates and guidance on health care reform and other legislative changes 58% 32% 10% 2.77 Offers employee communications to help our employees make benefit decisions and understand the benefits that we provide Offers employee communications to help our employees understand how health care reform affects them Offers employee communications to help our employees improve their health and become wise consumers of health care 80% 18% 3% % 28% 6% % 23% 5% 2.49 Creates a strategic benefit plan that aligns with company goals 56% 36% 7% 2.47 Offers benefit statements to help our employees understand the value of their benefits 40% 36% 24% 2.47 Provides online access to policies and compliance and HR tools 24% 41% 35% 2.44 Provides health and prescription drug claims analysis 34% 44% 22% 2.41 Provides us with educational briefings on HR topics along with HR-related forms 58% 32% 11% 2.4 Offers compliance-related webinars 51% 38% 11% 2.29 Offers a wide array of voluntary benefits 81% 16% 3% 2.24 Provides an annual stewardship report outlining services provided through the year 45% 40% 16% 2.23 Offers a hotline where I can get my HR-related questions answered 29% 37% 33% 2.21 Offers employee communications to help our employees plan for retirement and improve their financial health 56% 33% 11% 2.16 Assists us with creating or maintaining a workplace wellness program 53% 35% 12% 2.13 Provides us with a sample employee handbook and sample handbook policies 30% 35% 35% 1.96 Provides a mid-year renewal 41% 42% 17% 1.96 Provides wage and salary benchmark information 18% 33% 50% 1.94 Offers employer compliance support and employee communications in video format 27% 40% 33% 1.89 Provides easy access to all resources and services on a mobile device 42% 37% 21% 1.75 Provides sample job descriptions 19% 37% 44% Broker Services Survey Results 8

9 Please tell us whether these services or expertise are provided by your benefits broker. Provides Partially Provides Does Not Provide Answers our compliance-related questions (PPACA, COBRA, FMLA, HIPAA, etc.) 72% 21% 7% Provides updates and guidance on health care reform and other legislative changes 79% 17% 5% Offers employee communications to help our employees make benefit decisions and understand the benefits that we provide Offers employee communications to help our employees understand how health care reform affects them Offers employee communications to help our employees improve their health and become wise consumers of health care 60% 29% 11% 55% 32% 13% 51% 32% 17% Creates a strategic benefit plan that aligns with company goals 60% 29% 11% Offers benefit statements to help our employees understand the value of their benefits 37% 27% 36% Provides online access to policies and compliance and HR tools 45% 29% 27% Provides health and prescription drug claims analysis 44% 28% 28% Provides us with educational briefings on HR topics along with HR-related forms 44% 33% 24% Offers compliance-related webinars 44% 30% 27% Offers a wide array of voluntary benefits 55% 32% 13% Provides an annual stewardship report outlining services provided through the year 37% 28% 35% Offers a hotline where I can get my HR-related questions answered 24% 22% 54% Offers employee communications to help our employees plan for retirement and improve their financial health 35% 22% 43% Assists us with creating or maintaining a workplace wellness program 45% 29% 27% Provides us with a sample employee handbook and sample handbook policies 14% 16% 69% Provides a mid-year renewal 44% 28% 28% Provides wage and salary benchmark information 16% 18% 66% Offers employer compliance support and employee communications in video format 37% 28% 35% Provides easy access to all resources and services on a mobile device 19% 37% 44% Provides sample job descriptions 19% 25% 56% 2014 Broker Services Survey Results 9

10 Challenges Top risk management challenges for respondents include keeping up to date on legislative changes (44 percent) and controlling workers compensation costs (43 percent). Managing health care costs continues to be the top employee benefit challenge (73 percent), followed by staying in compliance and being up to date on changing legislation (50 percent). Select your company's top three risk management challenges. Select your company's top three benefits challenges Broker Services Survey Results 10

11 Communication Sixty-six percent of respondents want to hear from their brokers at least monthly, with 20 percent of respondents wanting to have a weekly conversation with their brokers. When it comes to renewal, more than 6 out of 10 respondents prefer to be contacted by their brokers at least three months ahead of time. In what three ways do you most often communicate with your employees? Nearly three-fourths of survey respondents indicated they use to communicate with employees, although 54 percent hold one-on-one meetings. Sixteen percent report they communicate most often with employees via a self-service portal or intranet. How often does your broker communicate with you about benefits, HR, health, safety, risk or compliance issues? How far in advance of renewal would you like to hear from your broker? How often would you like your broker to communicate with you about benefits, HR, health, safety, risk or compliance issues? Contact Scirocco Group to discuss how this survey information can assist you in your future benefit plan strategies. This survey was conducted in early 2014 through the client portal website provided by Scirocco Group. This survey was anonymous, so responses have not been validated for statistical significance or margin of error Broker Services Survey Results 11