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Selling Creative ASO Employee Benefit Solutions to Your Best Prospects

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Selling Creative ASO Employee Benefit Solutions to Your Best Prospects

  1. 1. Selling creative ASOemployee benefit solutions toyour best prospectsRobert J. Crowder CLU, GBAPresidentMay 2012
  2. 2. Goals/Objectives for TodayYou will have a better understanding of: How the insurance environment is changing Selling a commodity vs. customized solution The right questions to ask your prospects ASO plan design flexibility
  3. 3. Present Employee BenefitsEnvironment COSTS SUPPLIERS MARKET
  4. 4. Clients often become dissatisfied with abenefits relationship because they don’tunderstand it. W eh high avThin k premiums are too et oh av eb en Cost increases ev efi ery year! ts Voodoo insurance compan er y Plan doesn’t cov math what I need
  5. 5. Fact: Few insurance companies are controlling 80%+ of the small case marketplaceArguably: The insurance industry has turned small employee benefit plans into a commodityThe only difference in the offerings between variousinsurance companies is the colour of the letterhead … andprice IMO
  6. 6. So what is your choice? GWL Empire Manulife DFS Sun Life StandardStop … I want to get off!
  7. 7. So what is your choice?Don’t sell a commodity, …sell a customized solution
  8. 8. How?To sell a customized solution, you need the tools to doso…You need an ASO solution
  9. 9. A benefits plan is a promise madeby the employer to the employees How will that promise be defined?
  10. 10. Parts of the promise Life Insurance, AD&D CI Out of CountryHigh CostLow Freq INSURANCE requires insurance Long Term Disability Extended Health Care (Claims over $5,000) Low Inflation CLIENT RISK LINE High Inflation Dental CareLow CostHigh Freq BILL PAYMENTS Extended Health Care requires administration Short Term Disability services (Claims under $5,000)
  11. 11. Traditional Funding vs. A.S.O. Funding Risk charges Risk charges + + “GAP” Anticipated Your actual claims claims + + Plan operation Plan operation expenses expenses = = Your premiums Your costs www.thebenefitstrust.com
  12. 12. INSURANCE This portion of the benefits plan should be designed according to YOUR CLIENTS’ needs, instead ofjust a standard insurance package. BILL PAYMENTS
  13. 13. Owners and Executivesshould receive 100%benefits$1,000 in non-eligibleclaim costs require $2,000in after tax moneyNo double administration
  14. 14. Health Care Spending Accounts $ $ Employee’s Plan Sponsor $ $ CRA eligible expensesUnused Account Balances can be carried forwardinto the next benefit year Part of the benefit promise
  15. 15. The Benefits Trust Process Monthly Contribution Insurance Premiums $ Life, AD&D, LTD, Stop Loss, Critical Illness, Out of Country Claim Transactions $ Health, Dental, STD Plan Operation Costs $ Administration, Producer Compensation, Taxes Monthly Account Balances ($) YTD Account Balances ($) No Surprises
  16. 16. Who is an Ideal Prospect? Unique Benefit Owner/Operated Requirement Profitable Company 1 to 50 employees
  17. 17. How do sell a customized solution?Start having different conversations withyour clients. …ask different questions
  18. 18. …What is your compensation philosophy?…What are the groups within your group? …What is unique about your company?
  19. 19. It’s question time…Answers to these questions (and others) willhelp you to guide your client to their customizedemployee benefit solution.
  20. 20. What is your compensation philosophy?8 lives, new case, no prior coverage•7 Executives (base salary $150,000+)•1 employee•International green power consultingPhilosophy: The best of the best.Offer: “We will always find you the cheapest price”
  21. 21. The customized solution•$500,000 of AD&D Coverage•$250,000 of Business Accident Coverage•$25,000 of Critical Illness coverage•Out of Country Emergency Medical Coverage•$5,000 Stop loss coverage•100% EHC and Dental coverage with no limits,caps, or maximums. Expenses must meet CRAdefinition.•Budgeted contributions, monthly statements
  22. 22. The result•Appointed on the case•Larger than average premiums, and larger thanaverage commissions•Plan has been put in a drawer, and client hashappily moved on to key business issues•Hang up on your prospecting calls
  23. 23. What are the groups within your group?15 life case•2 owners•1 key staff member•3 important employees•9 employeesExisting plan: off the shelf 80% plan for everyone,increasing annually, moved twice in 5 years
  24. 24. The customized solution15 life case•Same pooled benefits as previous plan•Owners and key employee: 100% EHC and Dentalcoverage•Important employees: 85% EHC and Dentalcoverage•All other employees: 80% Core pay-direct drugplan and HCSA based on years of service
  25. 25. The result•No more client frustration•Increase in overall premium, and increase incommissions•10 minute renewal•Owner hangs up on your prospecting calls
  26. 26. What is unique about your company?45 life case•Distinct and unique culture•Employee empowerment•Individual responsibility•Owner office red mug - green mug policyExisting plan: conventional design with noemployee choice
  27. 27. The customized solutionCore Insurance, with Health Care Spending Account andGroup RRSP plans complementing each other Employee-Paid Employee Contribution Mandatory Benefits Mandatory $500 per year 2.0% per year Life, AD&D, CI, OOC, Stop Loss + Employer promise 5% of salary Choice of Choice of HCSA And/or GRRSP dollars dollars Voluntary GRRSP contributions
  28. 28. The result•One budget decision made annually by the client•Employees each make decisions about the future•Fits with culture•Increase in premiums, and increase incommissions•Hang up on your prospecting calls
  29. 29. Ask the questions… Remind the client of the questions and their answers
  30. 30. Get off the treadmill …• Sell customized solutions • Increase profitability in your benefits block • Take three steps forward
  31. 31. The Benefits Trust SystemTM Monthly Contribution Insurance Premiums $ Life, AD&D, LTD, Stop Loss, Critical Illness, Out of Country Claim Transactions $ Health, Dental, STD Plan Operation $ Costs Administration, Producer Compensation, Taxes Monthly Account Balances ($) YTD Account Balances ($)
  32. 32. Thanks for your time Questions? www.thebenefitstrust.com

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