Aon Physician Alliance-Why Use a Broker?
One of the principal reasons for using an intermediary for the purchase of insurance
is to obtain the benefit of that broker's professional advice and market knowledge.
The broker's function is to:
- fully understand the physician and their practice and business needs,
- advise on those areas where insurance is required,
- negotiate insurance coverage within the chosen range of insurers,
- handle the servicing and administration of the insurance contracts,
- advise on changes in coverage and improvements in wording as the physician's
exposure develops or the insurance market changes, and
- advise and guide the physician on how best to manage its risk and prevent,
to the greatest extent possible, future losses.
Additionally, the broker can act as an advocate on behalf of the physician with respect
to issues surrounding the reporting of potential claims to the insurers, and in some
instances the settlement of claims under the insurance coverage.
Understanding the Physician and their Business
Ideally, the broker should have internal resources with direct experience in the physician's
business. In the case of the physician and/or physician group practices, the broker should
have internal resources that have worked with healthcare providers and understand the
healthcare delivery system.
Advising on the Insurance Required
In-depth knowledge of the physician's business naturally leads to a more thoughtful assessment
of the physician's insurance needs. The broker should be able to provide useful advice with
respect to appropriate levels of coverage, and should identify any particular issues for the
practice that may require specific insurance solutions.
Negotiating Terms and Conditions
The largest portion of the overall service factor in any twelve-month period tends to be the
negotiation of terms and conditions with the insurance market. This process includes, among
other things, the following:
- development of underwriting submissions
- negotiations with insurance markets
- analysis of alternatives obtained to include:
- wording comparisons, financial comparisons and discussions with the physician or practice
manager as to the subjective and objective advantages and disadvantages of each option.
In certain circumstances, the broker may assist the physician or practice manager in drafting
or customizing policy language for specific insurance requirements.
Servicing and Administration of the Insurance Contracts
This function entails streamlining, to the greatest extent possible, the application process
and assisting the physician or office manager through it, helping them gather documentation
for the underwriters and, ultimately, packaging materials for appropriate presentation to the
underwriters. In addition, the broker assists in the final execution of the transaction and
maintains copies of the relevant documentation. Further, where required, the broker will
facilitate the financing for the insurance transaction.
Monitoring Changes in the Marketplace
An experienced broker follows changes in the marketplace and keeps the physician and/or practice
manager informed about changes in insurance availability and trends, new coverage issues or claim
developments that may affect the practice, developments in policy language, and the activities of
comparable practices with respect to insurance issues. The broker will provide periodic market
updates, carrier and product updates and risk management updates to communicate this information
to the physician and/or practice manager.
Risk Management
Advice in the area of risk management is provided on both a formal and informal basis. The broker
should take a proactive approach in offering services to the practice, but should leave the
utilization of such services to the discretion of each physician or office manager.
Selecting a Broker
Upon selecting a broker, you may be asked to submit a Broker of Record letter (BOR). This letter,
usually prepared on your letterhead, is simply a statement that the designated broker has been
selected by you to investigate and explore insurance options on your behalf. The BOR allows both
your broker and the carrier(s) to begin working diligently in good faith on your behalf without
the concern of duplicative requests being submitted by another broker.
Broker Compensation
Brokers receive their compensation from the carrier. In complying with Aon's Transparency and
Disclosure procedure, we provide to you a complete accounting and disclosure of our compensation
arrangement with the carrier(s).
Justin King
justin_king@asg.aon.com
Delivering Quality
At Affinity Insurance Services, we create personalized client teams that deliver prompt, accurate
and astute insurance and risk management services, solutions and tools. Your client service team
is your insurance and risk management consultant, serving as your unbiased representative in the
insurance marketplace, and collaborating with you to evaluate your risk profile and develop an
insurance program tailored to your business. Our teams work together seamlessly to provide the
value, confidence and expertise that you expect. To review your client service plan in more
detail, please contact a member of your client team.
|
