1

Introduction
Regular communication and
prompt service are top criteria
employers look for when selecting
a broker. Slow communication and
poor service would prompt nearly
70 percent of survey respondents
to change brokers. Approximately
3 out of 4 clients want to hear
from their broker every month,
including 31 percent who want
weekly communication. Other
highly valued factors include
the brokers ability to negotiate
renewal and provide compliance
support, legislative updates and
benchmarking information.
concerning the Affordable Care Act
(ACA). Employee communications
and strategic benefits plans
are also vital components of
brokers services for a majority of
employers.
The 2017 Broker Services Survey
was conducted in mid-2017,
and a total of 623 respondents
completed the survey.
contents
Introduction ...........................................2
Key Findings .........................................3
The Client-broker
Relationship ...........................................5
Challenges.............................................12
Communication ............................14
Demographics..................................17

The most important services

a property and casualty (P&C)
broker can provide are a solid
understanding of each clients
business needs, coverage and
policy language expertise, and
timely delivery of certificates of
insurance and ID cards.

For employee benefits clients,

compliance-related support is the
most important service brokers
can offer, especially regarding
ongoing legislative changes
Please note that due to rounding conventions,
some graph percentages might not add up to
exactly 100 percent.

2017 Zywave, Inc. All rights reserved.

2
Key Findings: Examining the Service Gap
Property and Casualty
Assists in the creation, review and update of your
employee safety manual:
70%
Important 25%
Fully provides

Gap 45%

Helps design and support your return to work

programs: 74%
Important 25%
Fully provides

Gap 49%

Provides access to OSHA compliance information

and recordkeeping tools: 84%
Important 39%
Fully provides

Gap
45%

Provides total cost of risk information:

94%
Important
48%
Fully provides

Gap
46%

3
Key Findings: Examining the Service Gap
Benefits
Creates a multiyear strategic benefit plan that
88% aligns with company goals:

29% Important

Fully provides
59% Gap

Offers employee communications to help your

92% employees improve their health and become wise
consumers of health care:
49%
Important

43% Fully provides

Gap

Provides online access to policies and compliance

93% HR tools:

43% Important

Fully provides
50% Gap

Provides plan design benchmark information:

91%
Important
40%
Fully provides

51% Gap

4
The Client-broker
Relationship
More than 80 percent of employers look for a trusted advisor, regular
communication, timely service and prompt answers to their questions.
Other broker criteria highly valued by employers include the ability to
compare plans to benchmark data (77 percent), the ability to negotiate
renewal (74 percent) and the ability to offer compliance resources (74
percent). Dissatisfaction with timeliness and ineffective service was the
primary reason respondents switched brokers. About 18 percent of
commercial P&C customers and 21 percent of benefits customers have
changed brokers in the past three years.

For benefits clients, compliance is the most important issue, with 99

percent of respondents listing brokers answering compliance-related
questions as very or somewhat important. However, only 70 percent
report that their broker fully provides this support, creating a service gap
of nearly 30 percent. In fact, service gaps in most areas have increased
since 2016, illustrating a growing need and a great selling opportunity for
brokers.

For P&C clients, a brokers understanding of their companys business

is very or somewhat important to 98 percent of respondents, but only
65 percent feel that their broker fully provides this expertise, creating a
33 percent service gap. There is also a significant service gap between
the number of clients who want to receive claim frequency and cost
reduction information from their broker (93 percent) and the percentage
of brokers fully satisfying that demand (41 percent).

5
The Client-broker Relationship
What criteria do you use when selecting a broker?

Provides prompt and effective service/

answers questions in a timely manner 83%
Is a trusted advisor rather than an
insurance salesperson 80%
Regularly communicates with you
80%
Has the ability to compare plans/
coverages to benchmark data 77%
Has the ability to challenge/negotiate
your renewal 74%
Offers resources to help keep you in
compliance with laws and regulations 74%
Your relationship with the broker
73%
Offers competitive pricing
69%
Has a good reputation and brand
66%
Has expertise in servicing your
industry/business 64%
Offers a wide range of services to
meet your HR, employee benefits, and
health and wellness needs 60%
Offers analytics to help reduce costs
and risk 53%
Their products and services are
tailored to meet your specific needs 53%
Uses a consultative rather than a
product-focused sales approach 48%
Offers a wide range of services to
meet your risk management, total cost
of risk and employee safety needs
42%
Number of carriers the agency
represents 29%
Provides access to their products and
services through multiple channels,
including mobile devices 23%
6
The Client-broker Relationship
What are the three main factors that would lead you to make a change in brokers?

Does not provide prompt and effective

service or answer your questions in a timely
fashion 69%
Only sells you insurance instead of providing
trusted advice 42%
Lack of consistent communication
38%
Does not offer resources to keep you in
compliance with laws and regulations 33%
Lacks understanding of your company or
expertise in your industry 29%
If another broker was able to negotiate lower
premiums (i.e., negotiate a lower price) 24%
Does not provide a strategic plan that is
consistent with your business needs 22%
Does not provide a wide range of services
to meet your HR, wellness, plan design, risk
management and/or employee safety needs 22%
Referral from a trusted source
7%
Does not provide mobile access to their
products and services 1%

Have you made a change in your P&C (commercial Have you made a change in your benefits broker
insurance) broker in the last three years? in the last three years?

16% 4%
18% 21%

66%
Yes Yes 73%
No No

Dont Know Dont Know

7
The Client-broker Relationship
Please tell us the importance level you attribute to the following Very
important
Somewhat
important
Not
important
P&C (commercial insurance) broker services.
*Rating 20% 40% 60% 80% 100%
Has a thorough understanding of your
companys business 2.75 78% 20% 2%

Has coverage and policy language expertise

2.71 74% 23% 3%
Timely delivery of certificates of insurance and
ID cards 2.70 73% 25% 3%

Provides claims submission support

2.60 65% 31% 5%
Delivers information that will help reduce the
frequency and expense of claims 2.55 63% 30% 7%
Helps your organization become a more
educated insurance buyer 2.51 56% 40% 5%

Provides total cost of risk information

2.51 58% 36% 7%
Proactively provides regulatory and legislative
updates 2.50 57% 37% 6%
Assists with tracking your organizations certificates of
insurance 2.41 51% 39% 10%
Performs mod analysis to identify actionable strat-
egies to reduce total workers compensation costs 2.35 51% 34% 16%
Offers ability to report claims online and track
claims activity 2.33 46% 41% 13%
Provides access to OSHA compliance
information and recordkeeping tools 2.26 42% 42% 16%
Uses technology to help analyze claim activity
and identify root causes 2.25 40% 44% 16%
Provides employee-focused health and safety
information 2.21 35% 50% 15%
Offers assistance in documenting, reporting and
tracking workplace incidents 2.20 39% 43% 18%
Provides an annual stewardship report outlining
the services offered throughout the year 2.15 31% 52% 17%
Assists you in creating or maintaining a
workplace safety program 2.14 35% 43% 21%
Offers a hotline where you can get your HR-
related questions answered 2.11 34% 43% 23%
Provides your company with certificate tracking
tools 2.09 30% 48% 21%
Offers an online learning management system
(LMS) for employee education and safety training 2.01 26% 49% 25%
Helps design and support your return to work
programs 1.98 24% 50% 26%
Assists in the creation, review and update of
your employee safety manual 1.97 28% 42% 30%
*Responses are weighed by the following scale: Very important = 3, Somewhat important = 2, Not important = 1 8
The Client-broker Relationship
Please tell us whether your P&C (commercial insurance) Provides Partially
Provides
Doesnt
Provide
broker is providing these services or expertise.
20% 40% 60% 80% 100%
Timely delivery of certificates of insurance and ID cards 73% 16% 10%

Has coverage and policy language expertise 71% 20% 9%

Has a thorough understanding of your companys business 65% 27% 8%

Provides claims submission support 61% 24% 14%

Assists with tracking your organizations certificates of insurance 53% 27% 21%

Proactively provides regulatory and legislative updates 50% 29% 20%

Helps your organization become a more educated
insurance buyer 48% 32% 19%

Provides total cost of risk information 48% 30% 23%

Offers ability to report claims online and track claims
activity
45% 25% 30%
Performs mod analysis to identify actionable strategies to
reduce total workers compensation costs 42% 29% 29%
Delivers information that will help reduce the frequency
and expense of claims
41% 34% 26%
Offers assistance in documenting, reporting and
tracking workplace incidents
41% 30% 30%
Provides an annual stewardship report outlining
the services offered throughout the year 40% 28% 32%
Provides access to OSHA compliance information and
recordkeeping tools 39% 28% 33%
Provides employee-focused health and safety
information 36% 35% 30%
Offers a hotline where you can get your HR-
related questions answered
36% 27% 37%
Uses technology to help analyze claim activity
and identify root causes 35% 30% 35%
Provides your company with certificate tracking
tools 34% 30% 36%
Assists you in creating or maintaining a
workplace safety program
30% 33% 37%
Offers an online LMS for employee education
and safety training 29% 28% 43%
Helps design and support your return to work
programs 25% 28% 47%
Assists in the creation, review and update of
your employee safety manual 25% 26% 49%
9
The Client-broker Relationship
Please tell us the importance level you attribute to the following Very
important
Somewhat
important
Not
important
employee benefits broker services.
*Rating 20% 40% 60% 80% 100%
Answers your compliance-related questions (e.g., ACA, COBRA, FMLA and HIPAA)
2.82 83% 16% 1%
Provides updates and guidance on health care reform and other legislative changes
2.79 80% 19% 1%
Helps to meet compliance dates and deadlines with reminders and resources
2.76 80% 16% 4%
Provides compliant plan documents
2.74 79% 16% 5%
Offers employee communications to help your employees make benefit and
enrollment decisions and understand the benefits that you provide 2.71 74% 23% 3%
Provides solutions and tools that help your organization deal with the ACA (e.g.,
6055/6056 compliance, ACA reporting and filing, full-time employee tracking) 2.64 71% 22% 7%
Provides customized employee benefits booklets
2.53 60% 33% 7%
Provides health and prescription drug claims analysis
2.51 61% 30% 9%
Provides plan design benchmark information
2.50 59% 32% 9%
Offers benefit statements to help your employees understand the value of their benefits
2.49 60% 30% 10%
Provides online access to policies and compliance and HR tools
2.45 52% 41% 7%
Offers employee communications to help your employees improve their health and
become wise consumers of health care 2.43 51% 41% 8%
Provides you with educational briefings on HR topics along with HR-related forms
2.41 49% 43% 8%
Offers tools, resources or services to assist with onboarding new employees
2.37 51% 34% 15%
Creates a multiyear strategic benefit plan that aligns with company goals
2.35 47% 41% 12%
Offers a hotline where you can get your HR-related questions answered
2.34 47% 39% 14%
Provides an annual stewardship report outlining services provided through the year
2.3 42% 46% 12%
Offers compliance-related webinars
2.29 43% 43% 14%
Offers a way to build total compensation statements to show employees the value of
their benefits 2.26 42% 43% 16%
Offers employee benefits online enrollment to your employees
2.24 46% 32% 22%
Offers a wide array of voluntary benefits
2.17 36% 45% 19%
Provides you with a sample employee handbook and sample handbook policies
2.12 35% 41% 23%
Assists you with creating or maintaining a workplace wellness program
2.05 29% 47% 24%
Offers employer compliance support and employee communications in video format
1.95 25% 44% 31%
Assists with tracking federal and state leave
1.79 21% 37% 42%
Provides an employee portal with vacation tracking capabilities
1.53 14% 26% 60%
*Responses are weighed by the following scale: Very important = 3, Somewhat important = 2, Not important = 1 10
The Client-broker Relationship
Please tell us whether your benefits broker is providing these Provides Partially
provides
Doesnt
provide
services or expertise.
20% 40% 60% 80% 100%
Answers your compliance-related questions (e.g., ACA, COBRA, FMLA and HIPAA) 70% 22% 8%
Provides updates and guidance on health care reform and other legislative
changes
67% 26% 7%
Provides compliant plan documents 65% 23% 11%
Helps to meet compliance dates and deadlines with reminders and resources 63% 25% 12%
Provides solutions and tools that help your organization deal with the ACA (e.g.,
6055/6056 compliance, ACA reporting and filing, full-time employee tracking) 52% 29% 19%
Provides customized employee benefits booklets 51% 23% 26%
Offers employee communications to help your employees make benefit and
enrollment decisions and understand the benefits that you provide 49% 36% 15%
Offers a wide array of voluntary benefits 48% 34% 18%
Offers compliance-related webinars 46% 23% 31%
Provides online access to policies and compliance and HR tools 43% 32% 25%
Provides health and prescription drug claims analysis 43% 23% 33%
Provides you with educational briefings on HR topics along with HR-related forms 42% 35% 23%
Offers employee communications to help your employees improve their
health and become wise consumers of health care 41% 37% 22%
Provides plan design benchmark information 40% 34% 26%
Offers a hotline where you can get your HR-related questions answered 38% 25% 37%
Provides an annual stewardship report outlining services provided through the
year 36% 31% 34%
Offers employee benefits online enrollment to your employees 34% 20% 46%
Offers tools, resources or services to assist with onboarding new employees 31% 35% 33%
Creates a multiyear strategic benefit plan that aligns with company goals 29% 33% 38%
Offers benefit statements to help your employees understand the value of
their benefits 29% 23% 48%
Provides you with a sample employee handbook and sample handbook policies 26% 24% 50%
Assists you with creating or maintaining a workplace wellness program 23% 39% 38%
Offers employer compliance support and employee communications in video
format 23% 26% 51%
Offers a way to build total compensation statements to show employees the
value of their benefits 22% 23% 55%
Provides an employee portal with vacation tracking capabilities 15% 13% 73%
Assists with tracking federal and state leave 13% 18% 69%
11
Challenges
Top risk management challenges for respondents include controlling
workers compensation costs (42 percent) and keeping up to date on
regulatory changes (42 percent), which are the same main challenges
as last year. Other top concerns include cyber security and educating
employees about safety. In fact, 33 percent of brokers said cyber security
is one of the top three challenges facing their agency, up 5 percent from
2016.

Managing health care costs continues to be the top employee benefits

challenge (64 percent), followed by staying in compliance with changing
legislation such as the ACA (42 percent) and helping employees become
better consumers of health care (34 percent). Other top concerns include
benefits administration, and attracting and retaining employees. One
benefits challenge that saw the most significant increase from previous
years was employee benefits education, up by 8 percent.

12
challenges
Select your companys top three risk management challenges.

Controlling workers compensation costs 42%

Keeping up to date on regulatory changes
42%
Cyber security (data breach, hacking, etc.)
33%
Educating employees on safety
33%
Managing exposures
29%
Managing risk at multiple locations
25%
Addressing management liabilities 22%
OSHA compliance
20%
Reducing costs on existing claims
19%
Disaster planning
15%
Managing hazard communication
5%
Select your companys top three employee benefits challenges.

Managing health care costs 64%

Keeping in compliance and up to date on
changing legislation, including the ACA 42%
Helping employees become better
consumers of health care 34%
Benefits administration and employee
benefits education 32%
Attracting and retaining employees
28%
Educating employees on health and wellness
18%
Reporting requirements under the ACA 18%
Human resources issues
17%
Managing prescription drug costs
13%
Helping employees prepare for retirement
10%
Workplace wellness programs
8%
Identifying full-time employees under the ACA
3%
13
Communication
Forty-two percent of respondents want to hear from their broker monthly,
and another 31 percent want to have weekly communication with their
broker. As renewal time approaches, more than half of respondents (55
percent) would like to be contacted by their broker at least three months
ahead of time, with another 43 percent looking for broker communication
six months in advance.

14
communication
How often does your broker communicate with How often would you like your broker to
you about benefits, HR, health, safety, risk or communicate with you about benefits, HR, health,
compliance issues? safety, risk or compliance issues?

28% 4% 31%
17% 15%

15% 8%
32%
8%
42%
Weekly Weekly

Monthly Monthly

Every other month Every other month

Quarterly Quarterly

Semi-annually Semi-annually

In what three ways do you most often communicate with your employees?

Email 72%
One-on-one meetings
54%
Company/departmental meetings
44%
Paper (e.g., payroll stuffers, memos)
32%
Phone
25%
Bulletin board
21%
Self-service portal or intranet 18%
Monthly newsletter
15%
Social networking sites (e.g., Facebook, Twitter)
1%
15
communication
How far in advance of renewal would you like to hear from your broker?

6 months in advance 3 months in advance

43% 55%
57% 45%

Yes Yes

No No

1 month in advance

3%

98%

Yes

No

16
Demographics
This survey was completed by employers in all regions of the United
States. The overwhelming majority of survey respondents were from
organizations employing fewer than 500 employees.

17
demographics
In which region is your organization based (the most employees)?

18% 5%
6%
22%
10%

16%

8% 3%
11%

18
demographics
In which industry sector does your organization How many employees does your organization
operate? employ?

Other 21% Fewer than 50 36%

Manufacturing 16% 50-99 19%
Construction 10% 100-249
22%
Health Care
10% 250-499 11%
Nonprofit 9% 500-999 5%
Retail and Wholesale Trade 8% 1,000-2,499 4%
Finance, Insurance and Real Estate 8% 2,500-5,000 2%
Agriculture, Forestry and Fishing 4%
Transportation, Communications,
Electric, Gas and Sanitary Services 4%
5,001+ <1%
Public Administration 4%
Education 3%
Legal 2%
Hotels and Hospitality <1%
Social Services <1%
What job title most accurately applies to your position?

HR professional (e.g., VP, director, assistant, coordinator) 43%

Office manager/administration
14%
President/CEO/COO/CFO
13%
Benefits professional (e.g., VP, director, administrator,
coordinator, manager) 10%
Finance executive (e.g., controller, comptroller, business
manager, accountant) 10%
Other
4%
Safety manager 3%
Risk manager
1%
Owner
1%
Operations director
<1%
19