Overview of company transforming the sale of life, annuity and health products. Intellectual property originally developed by a leading actuarial firm and incubated into an innovative solution

1. April 2016
CONFIDENTIAL
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Company Overview

2. Confidential STEP Solutions Group, LLC
Contents
 STEP History
 STEP Vision
 STEP as a Transformation Platform
 Transformation Examples
 Marketplace Portal
 Business Model
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3. Confidential STEP Solutions Group, LLC
STEP History
• Developed internally by Milliman Inc., a leading actuarial
firm
• Developed internally from 2001 until 2008
• Motivated by the complexity and barriers to getting new products to market
using legacy administration systems
• Toolset to enable IT to deliver complex systems quickly
• Applied to develop a complex admin system for a block of Executive Life
products and LTC administration
• STEP acquired the business in 2008
• Modernized the business logic and developed a platform
• Surveyed the market and technology trends
• Objective to build a transformation engine
• Decided to focus on the new business and underwriting processes
• Highest ROI in the near term
• “Grow the business” mandate
• Vision
• Supports innovation initiatives
• Fits into a legacy environment as a hybrid solution
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4. Confidential STEP Solutions Group, LLC
STEP as a transformation platform
• STEP can enable a total transformation of the new business platform
• Accelerate time to decision on policy issuance
• Accelerate time to market targeting new products, channels,
customers
• Reduce the cost of lost opportunity
• Stream line business processes and improve organizational
productivity
• 40% to 60% of operations and underwriting costs can be
reduced depending on the choices made in the setup
• Kick out rules, risk assessments and scoring are applied
consistently
• System manages IGO and compliance processes
• Underwriters work on cases which have been properly
screened and have supporting data at hand
• Auto decisioning can manage a significant portion of the
cases, putting the focus of operations and underwriting
on those cases which require attention
• STEP platform with integrated document and workflow
management helps reduce cost and complexity of technology
platforms by 60%
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5. Confidential STEP Solutions Group, LLC
Transformation examples
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6. Confidential STEP Solutions Group, LLC
Marketplace Portal is One of Six Components
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7. Confidential STEP Solutions Group, LLC
STEP Business Model
• STEP licenses its products directly to carriers, or through a
partnership with a leading Business Process Outsourcing
firm, or licensed with third party vendors in a combined
cloud offering
• SaaS license model
• Annual license fee per product category
• Transaction and processing fees based on business process
interaction
• Enterprise License model
• License fee plus annual maintenance
• STEP Solutions Group is an affiliate of the Dillon Kane
Group, a business incubator based in Chicago
• 250 employees within the DKG family
• Shared back office for HR, admin, insurance, accounting,
finance,legal, space and network administration

8. Confidential STEP Solutions Group, LLC
Key Metrics
• STEP Solutions has been incubated over 7 years
• Technology from Milliman has been modernized and four new
components have been developed
• Significant investments by Milliman and Dillon Kane Group and an
estimated 25,000 hours of R&D investment in new business and
underwriting components
• Legacy implementations provided real time laboratory to develop a
leading edge new business and automated underwriting platform
• 20 person technology and operations team with deep insurance, new
business, underwriting, policy administration and claims expertise
• Pipeline of clients is growing
• First large implementation will go live the first quarter of 2017
• Joint proposal with a leading cognitive intelligence vendor to develop a
marketplace portal for a major insurance company is in process
• A major reinsurer is working with Dillon Kane Group to develop an
insurance marketplace leveraging the STEP platform