What are Captive Health Insurance Brokers?

If you are thinking about getting health insurance, you might also be thinking about trying to find the right health insurance policy with the help of a broker.

Health insurance brokers deal with health insurance and health insurance rate quotes all day long, and they know where to look for the right rates, and they’ll also be able to make some good suggestions for your needs based on the information that you give them. However, it’s important to bear in mind that there are many health insurance brokers out there who “neglect” to inform you that they actually seek to sell a specific brand of health insurance, and make you think it’s the best choice for you without explaining their relationship to the insurer they are promoting. These brokers are called captive brokers.

Captive brokers seek to sell people a specific brand of health insurance. So, let’s say you come across a captive broker in your search for health insurance. He or she will give you their professional advice on what you need and then suggest their specific brand of health insurance as the best choice for you. Along the way they will bad mouth other insurance companies and their policies, perhaps pointing out steep costs or poor customer service, or limited range of options. Once that’s done the captive broker will then promote the health insurance that he or she is actually affiliated with. In fact, a conversation framed along these lines could easily be taught to the captive broker as part of his training.

If you find a broker promoting one brand over all others, it’s important that you ask him or her if they’re affiliated in any way with that insurance company. In fact, it might be a good idea to ask that question as early as possible in the conversation.

To learn more about captive brokers, health insurance brokers, and any other aspect of health insurance, be sure to speak with an industry professional. You could also consult with consumer advocacy groups whose primary goal is objectivity.