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Presenting to the client
During any stage of the sales process it’s the actor not the script!
Execution
Where are we?
• You have completed the first meeting.
• You have completed your initial analysis for the purpose of generating more questions.
• You have interviewed the client.
• Now – you are preparing for your final meeting
Collective Wisdom
Section 5: Solutions & Sales Strategies Worksheet
• You must bring forward the opportunities from Section 2 as well as the answers to the questions generated as requested in Sections 3 and 4.
• Discuss and document the opportunity to help the client based on your interview and other empirical data you have.
• What documents will you show the customer to prove your point? Be specific – provide copies if possible. For instance, if you find they do not have an ERISA-required wrap document, you may show them an article that explains the need for one and perhaps a sample plan.
• Next you must explain the benefit and emotionally involve the client. Specifically, how will you make the client ecstatic about your new idea and simultaneously blame their current broker for not implementing or advising them of your idea, observation or comments earlier? End result: will they wonder what their current agent is doing???
• You must come up with a non-insurance related analogy to make your point. How can you get them to relate to what you are saying? For example, let’s say your idea was to implement an HRA, self insure the deductible and implement a MERP. Your analogy may be, “If you reviewed your cell phone bill and found that you were paying for twice as many minutes as you were using, wouldn’t you select a new plan?” Of course they would, so next you would say, “Well, if you are paying for a $500 deductible and only 20% of your participants are going above this, should you select a new plan?”
• You must come up with possible objections and how you will handle them. For example, utilizing the HRA example above, you might hear, “Well we do not want to take any risk!” Then you must formulate your answers.
Group Feedback
• What is the foundation for your pain?
• What is your analogy?
• How will you create desire?
• What is one anticipated objection?
• How will you use showmanship?
Features and principals
• What type of solutions are we looking for?
• How do we quantify the benefit?
• Specificity
• How to we gain conviction
• How do we make an impression– Showmanship
• Concise and Succinct – ms. Georgia
• What are the five steps• How do you create desire • Meat on the bone• Confidence• What is most important after
confidence• An example of tenacity• Concrete:
– Walk through like at the airport and eliminates the possibility someone will get sick?
Goal
• We are going to present the opportunties we gained from seeking to understand starting with the client’s own words. This is our foundation to create desire.
• We must use analogies– What you don’t know you don’t know
• We will not be surprised but the client will• We are going to show them the printout from our
magical calculator
How many Benefit Broker’s can access a carrier at the same time?
One
Unlim
ited
Tw
o
23%
0%
77%
1. One
2. Unlimited
3. Two
A broker can get a different price by?
Volu
me
Neg
otia
ting
Rel
atio
nship
Iden
tifyi
ng d
iffer
ent o
...
0%
85%
0%
15%
1. Volume
2. Negotiating
3. Relationship
4. Identifying different options
Based on what you know, you should choose a broker for their?
Pla
n des
ign id
eas
Cost
Cont
ainm
ent i
nit...
Ser
vice
s/
Res
ource
s
Long
term
stra
tegy
All
of the
above
0% 0%
100%
0%0%0%
1. Plan design ideas2. Cost Containment
initiatives3. Services/4. Resources5. Long term strategy6. All of the above
Based on the last three slides what is best way to
choose a broker?
By
underst
andi
ng h
..
quotin
g
Cas
e st
udies
Iden
tifyi
ng v
alue
add..
69%
31%
0%0%
1. By understanding how they can help you
2. quoting
3. Case studies
4. Identifying value added services and expertise
Where the pain talks and bullshit walks.
Agenda
Presented by
Tim Thomas – Assistant Vice President of Employee Benefits
Jeff Wittig – Senior Vice President of Employee Benefits
Village of Johnson City
The Problem
Analysis Recap
The Brown & Brown Advantage
Village of Johnson City Analysis and Solutions
Why Brown & Brown?
Agenda
Seek to Seek to understand…understand…
Seek to Seek to understand…understand…
Seek to Seek to understand…understand…
Seek to Seek to understand…understand…
In what way do you review this information
1. In detail
2. A summary
3. Certain items
4. Just for viewing
Summary of the Challenge
and F&B’s
Agenda
Major Drivers of Rising Costs
Medical Benefits
Where the premium dollars go…
Based on 2006 financial filing with the NYS DOI on aggregate premium revenue collected by more than 20 insurers. Percentages have been rounded to the nearest whole number.
Sample
Major Cost Drivers: Age
Percentage of the Top Spenders by Age Group
The Empire State Data Center Population Estimate Program, accessed October 2007
Sample
Major Cost Drivers: Cancer
Cancer diagnoses per thousand members have risen 35% from 2001 to 2005
80% of cancer patients have drug and chemotherapy costs that exceed $10,000 annually
22% of cancer patients have drug and chemotherapy costs exceeding $50,000 annually
9% of cancer patients have drug and chemotherapy costs exceeding $100,000 annually
These costs do not include other costs for office visits,surgery, imaging, lab, etc...
Figures based on a blended average taking into account membership diagnoses from Rochester HMO, CNY PPPO and Indemnity, Utica PPO and Indemnity and Univera HMO population
Sample
Health spending consistently exceeds inflation
Health care spending vs. inflationPercentage change compared with the previous year
Source: Kaiser Family Foundation, using National Health Expenditure data from CMSSam
ple
Health coverage premiums are on the rise
Sample
Employment-based coverage among adults
(ages 20-64)
Government-based coverage among adults
(ages 20-64)
Source: U.S. Census Bureau
All of these Pressures Lead to an Unsustainable Trend
Sample
The Challenge
How can we help?Collective Wisdom
The Black Box
Setting up the Final Presentation
• The Analysis• What did the customer
say – worded as positively as possible.
• What Documents did you review
• Example• “We only review our
experience at renewal.” “We do not review during the policy term.”
• We reviewed a copy of the last renewal.
• Recommendations• Based on what the
customer said and what we reviewed – what do we recommend?
• Conviction• What documents do we
show the customer to back up or recommendations or claims?
• From your strategy worksheet you use your plan to discuss your recommendations
Benefit
• What is the benefit to the customer? What is the financial value? What is the physic value? What is the ease of doing business value.
• These can be verbalized or can be conveyed in any effort you want.
• You have to make sure you have buy in and you should be reasonably conservative. Each benefit is another brick in building your case.
• REDUCED PREMIUMS• HEALTHIER POPULATION• GREATHER PRODUCTIVITY
Wellness Support
• Would like to implement wellness but not sure which areas to focus on.
• Very interested in a program.
• Education tools to identify cost drivers and areas of focus
• ZyWave internet resource
• Strategic alliance with Wellness
Coaches and Wellness by Choice.
• Dynamics
– Premium incentives
– Plan incentives
• Soft Dynamics (Behavior Change)
– Education
– Coaching
Analysis Findings Recommendations
A FOUNDATION OF THE CUSTOMERS WORDS WITH
RECOMMENDATIONS TO MEET THEIR OBJECTIVES AND GOALS
Why do we sometimes ask questions before we make our point?
1. To engage our prospect2. To collect data for a
survey3. To get the prospect
talking4. To give us perspective
How do you gain conviction from your client?
1. Backing up claims
2. Sincerity
3. Through your relationship
4. Hard work
5. Confidence
This slide will only work, relative to creating desire if ?
You a
re k
nowledg
eable
You h
ave
welln
ess
e...
You u
nders
tand
exa
c...
They
trus
t you
0%
33%
67%
0%
1. You are knowledgeable
2. You have wellness experience
3. You understand exactly what they have and have not done
4. They trust you
Cost Savings Analysis I. Program Returns from Improvement in Health Risks The table below represents our estimated average cost savings per 100 employees. These savings estimates are based upon the historical results and outcomes achieved from the implementation of our workplace wellness process. The “# of EEs” represents the average number of employees per 100 that have shown an improvement for a given health risk. The “Savings” is the average estimated amount expected to be saved per employee for each Health Risk Improvement. Note, the average cost of our program is a function of employee population and demographics, location, and service configuration, and averages $7.00 to $9.00 per employee per month.
Health Risk Improvements
# of EEs
Cost Savings
Total Savings
EEs who reduced body fat class from overweight to normal 1
8
X $275
$2,200
EEs who reduced body fat class from obese to overweight 2
5
X $2,500
$12,500
EEs who have increased their exercise to at least 20 minutes for 2 + days/ week 3
12
X $500
$6,000
EEs who stopped using tobacco products of any kind 4
4
X $1,600
$6,400
EEs who went from high risk for stress or depression to a lower risk status 5
8
X $3,000
$24,000
EEs who went from high risk for alcohol use to a lower risk status 6
3
X $2,400
$7,200
EEs who went from high risk for diabetes to a lower risk status 7
7
X $1,000
$7,000
EEs who completed an HRA 8 98 X $100 $9,800
Average Workers Comp Savings per 100 Employees $16,000
Total Possible Cost Savings per 100 Employees $91,100
Sources for Cost Savings: 1: Journal of Occupational and Environmental Medicine May 2004. http://www.joem.org 2: Journal of Occupational and Environmental Medicine May 2004. http://www.joem.org 3: Univ. of Michigan Health Management Research Center. http://www.umich.edu/news 4: CDC. www.cdc.gov 5: Milliman and Robertson Consulting. http://ubhc.umdnj.edu/ 6: George Washington Univ. Medical Center. http://www.alcoholcostcalculator.org/ 7: American Diabetes Association. https://www.diabetes.org/home.jsp 8: C. Everett Koop Health Awards. http://healthproject.stanford.edu/
Case Study -Buffalo Board of Ed.
• 2006 – 2007 plan years the Buffalo Board of Ed. transitioned from three carriers to one and left the community pooled products.
• $32 million in savings over two year period and full access to plan data and streamlined administration.
• The BBOE has over 7500 active and retired employees in over 40 plan variations.
• Since the initial two year period we have helped the BBOE manage their plan to single digit increases including the ’09 -10 upcoming plan year.
What is the purpose of this last slide?
1. Conviction
2. Closing
3. Desire
4. Attention
• “Cost & percentage increase has gone up every year. It is a mystery why insurance has gone up so much. We do not believe our current broker has done their best to negotiate on the behalf of the village.”
• Claims analysis– To help identify cost drivers– To monitor high claimant activity– To develop cost containment initiatives – To prepare for collective bargaining– To support the budgeting process
• FLRx reporting– Village of Johnson City’s drug profile
– Available generic options
RecommendationsAnalysis Findings
Cost Strategies continued...
Incurred May 1, 2008 through November 30, 2008Paid through December 31, 2008
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
Claims Experience: $735,353 $656,240 $718,755 $856,950 $568,580 $691,459 $716,825
Premiums: $829,666 $830,083 $814,884 $812,989 $824,964 $972,083 $968,767
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
How are claims trending?What is driving claims costs?How many high claimants?
How does this affect budget?
Inpatient Hospital Stays:
Research cause of increasing costs
• Often due to large claimant (s) and not overall increased admissions (compare number of admissions to previous year)
• Plan Design Changes– Implement or increase inpatient co-pay– Apply deductible to inpatient stays– Make sure there is incentive to use network provider– Make sure the plan includes pre-certification– Make sure the carrier has a utilization and case management program for non-routine care– Consider disease management
• Behavior Modification– Implement Health Risk Assessment (HRA) to identify unknown high risk situations and
possible large claims BEFORE they occur– Incorporate HRA with wellness program to keep healthy people healthy and work to improve
high risk situations – Just identifying one possible large claim can save tens of thousands of future claim dollars
What if analysis
Additional Findings
What is most important about the final proposal
1. Concise
2. Clear
3. Unique & Original
4. Inexpensive
Closing
• Whom is comfortable with bring up every aspect of why they should not buy?
• How do you read people• Making sure• What is the next step?• How does that align with your qualification?• Understanding how you are leaving it – are you sure?
How do you create desire at your final presentation?
1. Showmanship
2. Painting mental pictures
3. Being specific
4. Being Socratic
5. All of the above
• Service Plan – Section 6 RFD
• Time line
Why Brown & Brown
REASONS FOR
• Collective Wisdom of Benefits Team Nationwide
• Sixth Largest broker in the world..
• Carrier Relationships
• Full & complete marketing of all plans
• Self Insured and Fully Insured Experts
• 3 Pronged service team-
•Consultant, Marketing & Acct Mgt
• Quarterly utilization visits
• Valuable HR assistance
• Employee Benefits Communication
• Unlimited access to Account Manager
• Could end relationship at any time if not satisfied
• Decentralized- National resources w/ local execution
• No additional cost to your company
REASONS AGAINST
• Terminate your current broker
• No perceived financial Benefit
• Relationships – legacy relationship
• Timing
• Administrative
• Change
• P&C is with Brown & Brown.
• All eggs in one basket
• Me
• Service Team
• Current open claims
• Market place reputation
•Price
The most important thing in getting an order is to?
1. Make sure your client will not give the incumbent a last look
2. Having the best price3. Having the best
program4. Understand what the
client is thinking
• Engage the prospect in a new way of looking at things – We can’t do the same thing and except different results
• Collect all information• Review information and finalize list of questions • Interview Client– Seek to understand• Garner opportunties from doc review and client interview –
Collective wisdom – Magic calculator• Set up final presentation using the client’s own words as
your foundation• Do not alienate the client – alienate “Bob” – your
challenge!
SUMMARY