A Strategic Model for Product Diversification and Broker Revenue Enhancement
1. Realigning the Client Relationship A Strategic Model for Product Diversification and Broker Revenue Enhancement Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice
2. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Southwestern Risk Consulting practice Broker-driven Strategic planning Revenue enhancement
3. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice What we do Help brokers identify opportunities Diversification Product expansion Strategic partnership development
4. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Central focus Unlocking new profit centers Leveraging existing relationships Demonstrating value
5. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice The Beginnings Broker-sponsored vendor audits Operational infrastructure (platform, succession, business continuity/disaster recovery planning) Also reviewed client purchasing patterns Discovered Client plans purchasing multitude of services Fees averaged 45% of admin fees (med, dental) Medical bill repricing, Pre-cert, PBM, Wellness Each product provides TPA stream of revenue No additional responsibilities
6. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Analysis Efficient distribution of labor Broker sells, administrator services But at what cost? Competition for client relationship Effect on retention/customer loyalty Questions of relative value and expertise Who leverages the relationship for maximum financial advantage?
7. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice The reality The TPA received substantial fees for placement of business with vendors, not servicing the account.
8. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Strategic Response Reaffirm primacy and expertise Expand product mix Diversify revenue stream
9. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Reinforce primacy Broker as trusted, valuable advisor Broker as owner of relationship Broker as expert on product and service offerings
10. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Diversification Broker-driven products and services Plans already purchasing Opportunities for increased “same client” sales
11. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice The plan 10,000 lives Identify opportunity Easy to implement No disruption No increase in costs
12. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Turn-key operation We provided: Strategic partners Contract administration Vendor management
13. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice The results 10,000 lives being placed with broker driven service vendor Easy to implement No client disruption Same service level $.50 PEPM $60,000 in revenues
14. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Follow Up Talk about other opportunities Goal of “same client” revenues increase by $1.50 PEPM $180,000 annually
15. Southwestern Risk & Benefits Group, LLC A Strategic, Organizational and Operational Consulting Practice Not just about dollars Re-establishing primacy Demonstrating value and expertise Access to new products and services Diversifying revenue streams Building a new model Broker places business TPA administers plan
