A Benefit Audit is a methodical examination and review of a firm’s employee benefits program that is done internally, without marketing an account to insurance carriers.  Benefit Audits may be requested when a firm is reasonably content with their broker or consultant’s services, but wonders if they have considered all the options. Sometimes a firm acquires another company, or has new ownership, and would like an objective analysis of the employee benefits program, but does not want to have this second opinion or review threaten existing relationships.

 

A firm frequently seeks another broker or consultant’s services in conjunction with receiving a premium rate increase. This means that brokers and consultants often must sell their firm’s services at a time that coincides with a prospective client’s renewal. Unfortunately, the timing of both activities diminishes the buying clout of the purchaser and his/her broker or consultant’s representative with the insurance carriers.

 

Why? A consultant/broker’s leverage with a client’s insurance carrier is determined by the client’s relationship with that carrier, and by that carrier’s perception of the broker’s control of the client’s benefits business. If the carrier perceives that the employer has not actually retained the broker, the broker’s negotiating authority and effectiveness are diminished.  It is best to negotiate renewals with one competent broker or consultant rather than negotiating your account to multiple brokerage firms of consultants.

 

Conducting an Audit many months before renewal gives a prospective client an opportunity to better evaluate all the issues independent of the pressures of an impending rate increase.

 BENEFITS AUDIT PROCEDURES

 

A Benefits Audit involves four major steps: an Initial meeting resulting in an agreement to perform a Benefits Analysis; data gathering; a written benefits analysis report; and a meeting for a final presentation to review findings.

 

 

The Benefit Audit is most often conducted by Brody, Walsh & Brody to permit the prospective client to determine if their incumbent benefit advisors and existing plans are addressing all of the employer’s objectives and are consistent with the employer’s benefit philosophy. If you perceive the Audit as a valuable exercise that suggests plan modifications, Brody, Walsh & Brody hopes you will select us as the Broker of Record to implement the changes.