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Assigned market competition for brokerage services and insurance request for proposal

By Terry Haynes posted 11-14-2012 04:11 PM

  
We are contemplating an assigned market competition for our insurance business for an upcoming renewal.  How do you make it a level playing field when the incumbent broker requests the incumbent markets which are clear market leaders?  It would seem that this would limit the competitiveness of the process.  Does anyone have any suggestions regarding this?
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Eric Marsh
12-28-2012 04:57 PM

Terry - I would highly recommed against doing an assigned market competition as a method for selecting your broker. This method is mixing two projects which deserve independent analysis. Broker selection should be geared towards selecting the best broker to serve the needs of your company. Brokers competing against brokers will only truly bring out the best resources and individuals available. Once the broker is selected then the insurance companies must compete for your business. The brokers job is to manage this process and play the companies off of each other. Without a single broker in charge of all companies it is hard to truly obtain the most competitive bid in regards to terms and pricing.