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