As a benefits consultant, our services include conducting a market review for our clients and prospective clients. We solicit quotations from all the insurance carriers in the marketplace and do a cost and benefit analysis. Our recommendations take into account the insurance carriers product features, cost, service standards and technology. Cost is predominantly the major factor in the final decision. Why not choose the insurance carrier who offers the lowest price? John Ruskin, English Philosopher, 1819-1900 says it better than I can:
"It is unwise to pay too much, but it's unwise to pay too little. When you pay too much, all you lose is a little money. But when you pay too little, you stand a chance of losing everything, because the thing you bought is incapable of doing what you bought it to do. The common law of business balance prohibits paying a little and getting a lot - it cannot be done. So, when you deal with the lowest bidder, it is wise to put a little something aside to take care of the risk you run. And, if you do that, you can afford something better".
During a time when employers are building extensive rewards programs to retain employees and making huge investments to attract top talent, the cost of the lowest price is larger than ever.
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