4/13/2010

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Jumpstart Nondues

Revenue with an

Affinity Insurance

ProgramWednesday, April 14, 2010

2:00 – 3:00 pm Eastern Time

Hosted by ASAE Business Services, Inc. and Aon’s Affinity Insurance ServicesHosted by ASAE Business Services, Inc. and Aon’s Affinity Insurance Services

Your Presenters:

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Amy DohertySenior VP

Aon Association

Services

Amy has more than 17 years of property & casualty insurance

experience with Aon Association Services. She currently manages the

ASAE-Endorsed Association Business Insurance Solutions portfolio of

products.

Q&A

Perspective:

Insurance

Company

Perspective:

Program

Administrator

Perspective:

The

Association

Tony BenedettoExecutive VP

NASW Assurance

Services, Inc.

John has been a member of ING Association Sales for 13 years and has

been the GM for the past eight years. His prior experience includes 10

years in direct marketing group insurance and investment products

through the countries leading financial institutions.

John F. Breyer, CLU General Manager &

National Sales Director

ING Association Sales

Tony serves as the chief executive of both the NASW Assurance

Services, Inc. and NASW Insurance Company, Inc., which provide

various benefits and services to members of the National Association

of Social Workers. Tony currently serves on the boards of the ASAE

Insurance Co., NASW Assurance Services, and Assurance Services

Insurance Co.

Marty joined Aon six months ago as the Executive VP of Life and

Health. He has 15 years of experience with Marsh/ Marsh

subsidiaries and managed association L&H and P&C group insurance

programs from the broker perspective.

Martin Greubel, CLU Executive Vice President

Aon’s Affinity Insurance

Services

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Overview

�Association Perspective

�Program Administrator Perspective

�Insurance Carrier Perspective

�Q&A

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Polling Question

� Yes

� No

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Does your association currently endorse/sponsor an

insurance program for your members?

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The Association Perspective

Tony Benedetto

NASW Assurance Services, Inc.

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Why Offer a Program?

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� Does membership have its privileges?

� Reduce reliance on dues only income

� Add to the value proposition

� Build loyalty

� Improve member acquisition

Why Offer a Program?

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Selecting the Right Partners

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There is a great deal to consider:There is a great deal to consider:

� It really is a partnership

� What is important to each party

� Make them compete to get it and keep it

� Get the right people involved and build a consensus

� Business agreements and clear contracts

There is a great deal to consider:There is a great deal to consider:

� Picking the right partners

� Everyone has a “sweet spot”

� Things don’t work exactly as planned

� Consolidation in the industry

and economic upheaval

Challenges and Pitfalls

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It’s Getting Confusing Out There

Following today’s headlines is dizzying…Following today’s headlines is dizzying…

� Mergers and acquisitions anymore

� Add on new problems:

� Bankruptcy, poor investment performance,

government bailouts, etc.

� New CEOs, underwriting cycles

� Your members are relying on you to navigate

them through it

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When It’s Time to Change Partners

There are Yellow Lights to look for:There are Yellow Lights to look for:

� Change in leadership

and/or key personnel

� Lack of resources and

commitment

� Where are the new ideas

� Poor performance

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Level of Association Involvement

How involved should the Association be?

� Tolerance for risk

� Intellectual capital

� How much time are you willing (can afford) to

spend?

� What are your core competencies i.e.,

marketing, service, advocacy, information?

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Level of Association Involvement

Phase I – Research

• ASAE Business Services as a resource

• Feasibility Study with Beecher Carlson

• Board and Association involvement

Phase II – Design

• Elements of successful program

• Select providers

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Case Example: Creative NASW Insurance Company

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Level of Association Involvement

Case Example: Elements of a successful program

• Transparent to consumer/member

• Access program profits

• Ownership and control

• Diversifies revenue

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NASWIC Reinsurance Captive

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Questions for Tony?

To submit your questions:

1. Type your questions in the box located in the lower left corner.

2. Click the “Send” button.

Program Administrator

Perspective

Marty Greubel, CLU

Aon’s Affinity Insurance Services

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Types of Insurance Programs / Products

� Life, Accident & Health (L,A&H)• Life Insurance• Long Term Disability / Short Term Disability

• Long Term Care Insurance• Medical Insurance

� Dental, Vision, Catastrophe Major Medical, Medicare Supplement

� Property & Casualty (P&C)• Professional Liability (E&O)

• Management Liability (D&O, Employment Practices Liability, Fiduciary Liability, Fidelity, Kidnap & Ransom)

• Commercial Property, General Liability, Auto, Umbrella

• Workers Compensation• Umbrella Liability

• Specialty Insurance • Personal Lines Products (Homeowners, Auto, Personal Umbrella)

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Key Players in the Program Partnership

� Association Sponsor

� Program Administrator (PA)

or Broker

� Insurance Carrier

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Critical Elements to be Considered

� Homogeneity of membership

� Total member size and universe• Law of large numbers can attract insurance company and product

options

� Profession or class of business of members• What types of insurance products do your members purchase?

• What are the member’s “pain points” in terms of insurance • What other insurance providers are dominant in the space

• What other associations “compete” for your members and what do they offer?

� Members with small to mid-size operations

� Member needs, demographics determine product offering

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The Three - Way Partnership

• Well designed insurance programs• Comprehensive coverage• Competitive rates• Active association oversight• Excellent service to members• Creative and consistent marketing efforts• Transparency of reporting/sharing data • Risk management and risk reduction strategies

Sponsoring Association

Program Administrator

Underwriting Carrier

1. The sponsoring association

2. The program administrator

3. The underwriting carrier

All partners must have the same focus for success:

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Process to Launch a Program

� Program evaluation and recommendations• Conduct comprehensive membership survey

• Review & select partners � Program administrator and insurance carrier

• Determine desired compensation structure for your association

� Product Portfolio Review

• Determine insurance product portfolio

• Program administrator conducts market review

� Review competitive landscape

� Conducts comparison of forms, products and pricing

� Develop customized insurance solutions for members

� Launch comprehensive marketing & communication plan

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Evaluating an Existing Program –

Selecting a Program Administrator

� Request for proposal (RFP)

� Work independently on RFP or with a consultant

� Assess PA expertise closely with respect to how it aligns with your association’s goals

� Evaluate proposals and select new PA or stay with incumbent

� How much information does your association have regarding member participation & statistics for the current program?

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� PA can conduct insurance carrier RFP

� PA and association evaluate responses, rely on PA for their overall market intelligence

� Association selects new insurance carrier partner or stays with incumbent

� Information on member participation in program is key to successful transition to new PA or insurance carrier

Evaluating an Existing Program –

Selecting a Program Administrator

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Indicators of a Successful Program

� Short Term:

• Strong flow of new business opportunities

• Support from board members and others creating a circle of influence

• Strong quote to bind ratio

• Positive initial member feedback – serving a member need

� Long Term:

• High retention rates and sustained growth

• Member participation and satisfaction

• Provides association non-dues revenue stream

and opportunities for member acquisition

• Underwriting profitability and critical mass

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Keys to Success - Summary

� Proprietary insurance programs designed around the needs of its members• Exclusive access, coverage & pricing

• Unique risk management tools crafted for membership

� A program administrator as trusted advisor• Provides exceptional customer service

• Acts as a dynamic marketer and sales partner

• Acts as claims advocate

� A financially stable and experienced insurance carrier

� Marketing & product innovation for the “life” of the program

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Questions for Marty?

To submit your questions:

1. Type your questions in the box located in the lower left corner.

2. Click the “Send” button.

4/13/2010

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Insurance Company Perspective

John Breyer

ING Association Sales

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Why your choice of carriers is critical to a

successful Member Benefit Insurance Program.

Partnering with a Carrier:

� Company Ratings

� Financial Stability

� Product Offerings

� Strong Customer Service

� Experience in the Affinity industry

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Company Ratings:

� A.M. Best

� Moody’s

� Fitch

� Standard and Poor’s

Four Major Independent Insurance

Rating Organizations:

A+

A- A+

B+

Financial Stability

�Fortune 500

�Forbes Global

�Strong capital base

�Proven industry leader

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Product Offerings

� Demographics of membership

� Strong member affinity

� Competitively priced

� Ease of application

� Attractive marketing methods

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Strong Customer Service

� Solid carrier/TPA Partnership

� Dedicated carrier Account Management

responsibility

� Smooth and timely implementation

� Periodic plan design and financial reviews

� Home office support

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Experience in the Affinity Industry

� Affinity market focus

� Products designed to help promote

membership growth

� Experienced staff

� Solid relationships in the Affinity market

� Client retention

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Summary

� Financial sound company

� Carrier/TPA relationship

� Cutting edge product portfolio

� Competitive pricing

� Customer service

� Creative Marketing methods

� Program management

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Questions?To submit your questions:

1. Type your questions in the box located in the lower left corner.

2. Click the “Send” button.

Tony Benedetto

Executive Vice President

NASW Assurance Services, Inc.

tbenedetto@naswasi.org

(301) 668-4875

John F. Breyer, CLU

General Manager &

National Sales Director

ING Association Sales

John.Breyer@us.ing.com

(612) 372-1863

Martin Greubel, CLU

Executive Vice President

Aon’s Affinity Insurance

Services, Inc.

martin.greubel@aon.com

(319) 491-6617

Amy Doherty

Senior Vice President

Aon Association Services

amy_doherty@asg.aon.com

(202) 429-8571