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Benefits-as-a-Service: Who Wants to Go BAAS Fishing?

Michael McClenahan, GBAManaging PartnerBenefits by Design, Inc.Port Coquitlam, British Columbia

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Agenda

Benefits as a Service (BaaS)A little history trip and current stateHow will BaaS transform the employee benefits industry?What are the threats and opportunities?Taking advantage of the BaaS transformation

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So, what does BaaS look like?

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28 Years Ago

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What was happening in 1991?

• | The end of the Cold War• | Operation Desert Storm

• | Terminator 2 was released

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DEMUTUALIZATION

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1

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What about today?

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What about today?

Technology is transforming benefits as a service. This encompasses programs like:

● Great West Life’s Flexbox● League Inc.

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Meanwhile . . .

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Meanwhile...

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ROBOTS

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Will robots take my job?Insurance Underwriters 1

Review individual applications for insurance to evaluate degree of risk involved and determine acceptance of applications.

99%Automation Risk Level

YOU ARE DOOMED

1 www.willrobotstakemyjob.com

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Will robots take my job?Insurance Sales Agents 1

Sell life, property, casualty, health, automotive or other types of insurance. May offer clients to independent broker, or be employed by an insurance company.

92%Automation Risk Level

YOU ARE DOOMED

1 www.willrobotstakemyjob.com

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Will robots take my job?Personal Financial Advisors 1

Advise clients on financial claims using knowledge of tax and investment strategies, securities, insurance, pension plans, and real estate.

58%Automation Risk Level

ROBOTS ARE WATCHING

1 www.willrobotstakemyjob.com

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What do customers want?

1 Swiss Re: Digital Distribution in Insurance: a quiet revolution

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Maybe we should look at this

differently . . .

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HALOSPORT

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So, that’s all great Mike . . .

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I’m too young to retire . . . . . . and I love my job!

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Be curious!

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Read

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Read

A short and interesting weekly blog that gets you thinking about what’s possible:

https://www.diamandis.com/

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Listen

● Akimbo● Exponential Wisdom● Masters of Scale● The Tim Ferriss Show● Green Shield Canada—

And Now for Something Completely Indifferent

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What makes you stand out . . .

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FrameworkLet’s go back to the first principles and ask:

01 | Who do we serve?02 | What do they need?03 | What do we own?04 | What do we know?

1 The Blockbuster store in Bend, Ore. (Photo Credit: Sandi Harding). Retrieved on April 23, 2019 from https://www.washingtonpost.com/news/business/wp/2018/07/14/why-are-you-still-here-inside-the-last-blockbuster-left-in-america/

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What makes you stand out?

Unbundle from the Supplier

Price is Only One Factor

Provide Value to Your Clients

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Checklist ✔✔✔✔

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How Should Advisors Approach Technology?

Nice to have Nice to haveShould have Should haveMust have (Core)

Digital enrolment

E-CommunicationCarrier Uploads (APIs)

PayrollManagement

Total RewardsStatements

Online HR Records

Benefits Marketplace (Voluntary)

Flexible Benefits

PerformanceReviews

HR Advice

Time Tracking

ShiftManagement

HourBank

1

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Advantages of an Unbundled TPA Model

01 | Best-in-class

02 | Separation of admin from risk

03 | Access to data for you and your client

04 | Removes insurer handcuff

05 | Facilitates greater transparency

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Technology and Processes

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Technology and Processes

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Telehealth

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Can you find a niche?

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Can you find a niche?

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What did we catch with our BaaS fishing?01 | Robots are watching but independent advice is valued02 | Revisit your first principles to define your value03 | Be curious and never stop learning04 | Develop your tool belt05 | Partner strategically06 | Find a niche

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What did we catch with our BaaS fishing?01 | Robots are watching but independent advice is valued02 | Revisit your first principles to define your value03 | Be curious and never stop learning04 | Develop your tool belt05 | Partner strategically06 | Find a PASSIONATE niche

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