There are two major factors impacting the marketplace for all insurance brokers captive and independent alike. First, the major payroll companies have created their own in-house insurance agencies.  It began with Workers’ Comp and has now expanded to Business Liability and Employee Benefits.  ADP is now the largest insurance agency in the United States.  Paychex is the 4th largest.  Both companies have for years partnered with workers comp agents, but now as the “New case” production of those independent agents slows down the big two payroll companies’ swoop in and move all their clients to their respective in-house PEOs, taking the workers comp along with them.  Many work comp brokers believe they can’t compete against giant agencies like the ones owned by ADP and Paychex, well you can!

Why can the payroll companies market so successfully to a broker’s book of business you ask?  Well they contact the client every two weeks, maybe as often as weekly, and the soliciting envelopes are always opened, that’s where the paychecks are!  The client only asks for a comparison quote to start.  If that looks good the payroll company explains how easy it will be when they pay the premiums by taking out smaller amounts with each payroll and then pays the carrier for the client.  What a great deal right?  Lower cost and less work, who could say no?  Well, the clients you have moved over to HR Ledger will never get the solicitations because we don’t sell insurance.  Protect your clients and your book!

Unfortunately, as the broker you are most often the last to know that a move is pending, normally the first indication is a BOR or non-renew notice from the carrier with no time to step in and stop the process.

A great trend in Workers’ Comp. Insurance is the pay-as-you-go or real-time premium model.  Clients pay a premium based on the incurred risk (number of hours worked).  Offering pay-as-you-go Worker’s Comp. requires a willing payroll company.  HR Ledger® is more than willing and we are able.  As of this writing, we port data to 33 carriers and/or agencies.

As a broker you can provide a solution which:

You have a friend in the Payroll Business.