Creating a Winning Solution for Voluntary
W. Brian HarriganFounder & CEO, GBO
Reinventing Insurance
Our Clients: Consumers, Distributors & Manufacturers
Technology Solutions: Private ExchangesProduct Management & Administration Platforms
38 Years in the industryUnion Mutual (Unum) Johnson & HigginsCEO, UICI, Inc. (NYSE)CEO, ZON-Re, USACEO, Group Benefit Options
The Landscape is Changing…
Sometimes Quickly…the ‘before’
…and the ‘after’
Sometimes Slowly…
The landscape is changing for all:
Consumers (Employees)EmployersDistributors – Agents/BrokersCarriers/Product Manufacturers
– Learning every day– Less is more
– Shifting focus– Product mix
More rapidly than you think!
73%
38%
25%
0%10%20%30%40%50%60%70%80%
2007 2010 2014Source: Towers Watson & National Business Group on Health Survey, March 2014
% of employers “Certain they will be offering company‐sponsored health insurance a decade from now”
Employee Benefits Advisors Survey (LIMRA)70% negatively impact sales of group medical77% in small group
55% fewer employers offer medical benefits60% in small group
75% non-medical products 100% voluntarySource: LIMRA Survey, February 2014
12%
14%
20%
23%
43%
0% 10% 20% 30% 40% 50%
Car Dealers
Retailers
Cable/Security
Google/Amazon
Banks
% Willing to Buy From Business Other than Insurers
Source: Accenture, February 2014
LIFE Foundation Study17% would buy life insurance from a retail outlet11% from a wholesale club (e.g., Costco, Sam’s)7% from a superstore (e.g., Wal-Mart, Target)5% from a drug store4% from grocery & convenience stores
Source: LIFE Foundation, 2013
LIFE Foundation Study – Why buy from Superstore? (e.g., Walmart, Target)Simple ProcessConvenientNo PressureAble to reach someoneResearch already doneProduct would be easy to understand
Source: LIFE Foundation, 2013
I want to avoid pushy sales people
I find it more convenient to research and purchase through the 24-hr web.
I can understand the product without assistance
Source: E&Y Voice of Customer Study, 2012
Why consumers don’t want personal interaction
Voluntary Products Raising Awareness / Becoming Top of Mind
Health
Dental
Vision
Legal
AccidentHospital Cash
Critical Illness
Life
Motor Clubs
Health Screening
Pet Insurance
Travel Discounts
Cell Phone Warranty
Auto & Home
ID Theft Event Liability
Trip Cancellation
Emergency Travel
Home Warranty
Traditional Voluntary
The New Voluntary
Amazon.com Home Page
1995
One-Stop Shopping solutions
What is the Insurance Solution???
50 departments of insuranceRegulatory oversight Compliance requirementsLicensing, appointments
No “Amazon” Experience for InsuranceComplex Industry
3,500+ carriers400,000+ agentsCountless products
Fragmented Market
Carriers and agents concentrate in product niches Auto, Home, Life, Employer, Individual,
etc.
Product‐centric
Agents must use carrier systemsCost prohibitive for agents to create their
own systemsCarrier systems are not consumer focused
Carrier‐controlled
Benefits Landscape
Erosion of Employer‐Coverage
New Distribution Options
Product Awareness
Technology
Erosion of Employer‐Coverage
New Distribution Options
Product Awareness
TechnologyBenefits Landscape
Carrier Solutions
ComparativeRaters
PPACA Solutions
EmployerSolutions
Examples
Target Market
Product Set
Distribution Impact
Product Model
Single carrier, limitedproducts
Consumer‐direct
P&C Focused
Multi‐carrier, limited products
Multi‐carrier, multiple products
Multi‐carrier, limited products
Consumer‐direct
Consumer‐direct
Health Focused
A&H Focused
A&HFocused
Employer‐Focused
Agent Displacing
Agent Displacing
AgentDisplacing
Group Agent Supporting
Agent / Broker Supporting & Enabling
Multi‐carrier, multiple products
Life, A&H and P&C
Consumers, Employees, Affinity Members
OptimalSolution
Attributes of the Optimal Private Exchange Solution
Multiple carriers in multiple linesIndividually owned and fully portableA consistent “learn/quote/buy” process across all productsOpen 24/7/365 – not just in open enrollmentPaid for directly by individuals or through payroll deduction Instant product notification and deliverySelf-service capabilities, access to all information, single
account
Where do we go from here?
Consumers
Brokers & Agents
Carriers
Employers
W. Brian Harrigan203.446.8054
www.groupbenefitoptions.comBrian.Harrigan@groupbenefitoptions.com
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