Following the repeal of the Glass-Steagal Act in 1999, the financial services industry became increasingly complex and competitive. Barriers that once kept financial disciplines separate were dissolved to create an environment where banks could offer insurance, insurance brokers could become financial advisors, and so on.
While competition is a good thing, this burst of activity, coupled with the ever-changing regulatory environment to include the more recent Patient Protection Act and Affordable Care Act, contributed greatly to the chaos and confusion that has become the healthcare insurance and financial services industry today. During the timeframe following the repeal of Glass Steagal, our attorney partners reported seeing an enormous increase in benefits litigation. Through extensive research and evaluation of numerous case studies, they concluded that the vast majority of litigation stemmed from too many financial and insurance advisors trying to venture too far outside of their core competencies on their own – without accessing the right specialists and experts. While they were now legally able to become licensed and integrate multiple disciplines; practically speaking, they continued to maintain separation and divisiveness between the various areas of expertise. Their business models were disjointed and broken.
Within even the largest national consulting and brokerage firms, our research uncovered the broken structure resulting from internal profit centers that forced diverse disciplines to operate in silos. If an advisor of a national consulting firm needed access to a peer’s expertise, they had to “buy” it and reduce income to their own profit center. Therefore, while the nationals had many of the needed experts on staff at various locations across the country, employers were rarely accessing the right experts within those firms for any specialized discipline.
PremierSource was founded in 2000 in response to employer cries for a single-source solution that would deliver proven, fully integrated and collaborative expertise in all areas of employee benefits, human resources, risk management and business consulting. These disciplines don’t operate in a vacuum, but are all interrelated parts of an employer’s overall risk management and cost management business strategy. We recognize the importance of staying true to core competencies – but we also recognize the need for the efficiencies and integration of a single-source, collaborative solution. Our model delivers the best of both worlds.