How PEOs can Help Insurance Brokers & Agents
Insurance agents are constantly challenged with retaining clients and keeping them satisfied. While increasing their list of clientele is important, most agents main priority is protecting their book of business, which is getting more and more difficult.
Insurance agents are competing in an extremely crowded and competitive market. Business owners are beginning to expect more value and support from their service providers making client retention increasingly difficult.
Professional Employer Organizations (PEOs) have traditionally been in direct competition with insurance agents, since PEOs offer insurance offerings that could take away business from agents. While some PEOs can still serve as competition for insurance agents, the landscape has drastically changed in recent times with more and more PEOs working with insurance brokers to offer solutions that can benefit everyone involved.
How PEOs can Help Insurance Brokers
Insurance brokers that work with PEOs quickly notice that they are able to offer better solutions to their clients while building their book of business and increasing retention. PEOs offer a multitude of services to small and medium sized businesses including HR services, payroll, employment taxes, benefits administration, workers comp, and compliance. By working with a PEO, smaller sized employers are able to offer services and benefits to their employees that they otherwise would not be able to on their own. This allows businesses to increase employee satisfaction, retention, and business growth.
When an insurance broker chooses to work with a PEO, they are able to offer their clients much more services under a single provider. Brokers can help their smaller clients enjoy the same benefits as large corporations. Working with a PEO also allows the broker to differentiate themselves. Offering the additional benefits of a PEO to potential clients can be a major factor that drives prospects to choose one broker over another.
On top of providing their clients with better service options, insurance brokers can also be compensated more for working with PEOs. A PEOs commission structure is based off the total amount of payroll which is usually much higher than a flat insurance premium. Brokers also get recurring commissions for every year their client stays with the PEO. By offering other services like employee benefits or workers comp, brokers and agents can earn extra income. PEOs also doesn’t recognize an agent of record (AOR) meaning that once you bring business to a PEO, you will be paid regardless of who is handling the account at any given time. More client offerings and higher commissions are continually driving more and more insurance brokers to do business with PEOs.
How Cornerstone can Help
Cornerstone PEO is a PEO made up of industry experts with decades of combined experience. Our experts take time to understand each client’s business and challenges to create a customized plan tailored to their specific needs.
At Cornerstone, we know what it means to work with brokers and insurance agencies. We have successfully formed partnerships that help insurance brokers solve business problems, retain current insurance clients, enjoy higher compensation on minimal time and effort while receiving a new stream of residual income.
Like other PEOs, Cornerstone helps businesses save significantly on employee benefits, automate your payroll, lower your experience modifier, and help with employment related compliance. However, unlike other PEOs, our focus is on excellent customer service.
Other PEOs will just add you to their system and send you an invoice. At Cornerstone we assign a professional customer service rep to work with your account. This not only adds more of a human touch, but it also allows us to create custom solutions unique to your business. Got questions? We have a rep to help you answer them. A problem occurred? You have a rep who understands your business and can create an effective solution.
Contact us here for a FREE consultation.