International Medical Insurance Tender on the basis of a concrete example: Julius Br Singapore Renew

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International Medical Insurance Tender on the
basis of a concrete example Julius Bär
Singapore Renewal on January 1, 2009

• Swiss - Global HR Executive Workshop
• Martin Bühler, Managing Partner,
• expatpartners ag
• Geneva, 15 September 2009

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Julius Baers Story Started in 1890
1890

2007
Julius Baer Group Founded1890
IPO on SWX1980
Share Unification2005
First Foreign Subsidiary Opened1940
SBC Acquisition 2005
Creating the largest pure wealth manager
Julius Baer, 1857-1922
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• expatpartners ag is a firm of independent
  insurance consultants.
• Public limited company.
• Domiciled in Zurich, Switzerland.
• We deal exclusively with international employee
  benefits. Main focus on insurance solutions for
  mobile employees.
• We support companies and their mobile employees
  Expatriates, Third Country Nationals, Assignees,
  Local Foreign Employees, Key Local Nationals,
  Trainees and Frequent Travelers in finding the
  best possible insurance solutions.
• Consulting and brokerage services (depending on
  the clients request).
• Licensed by the Swiss Government to provide
  insurance brokerage and consulting services.
• www.expatpartners.ch

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• Excecutive Summary
• Benefits review
• As part of the employee benefits insurance
  renewal exercise, Compensation Benefits
  Department of Julius Bär (CB) reviewed the
  current health care policy and benchmarked it
  against other providers.
• Role of expatpartners ag
• Due to its in-depth knowledge about the
  international medical insurance market,
  expatpartners acted in an advisory capacity.
• Actions taken
• CB visited four insurance companies during a
  field trip and decided to put JBs international
  medical plan out to tender for the local employee
  population in Singapore. Visited the following
  local and international medical insurance
  companies
• AIG, AXA Insurance, DKV and Vanbreda. Current
  provider CIGNA.

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• Tender procedure Actions to take
• Determination of the tender criteria (benefits,
  services, pricing model).
• Preparation of the tender documents.
• Decision which insurance companies to invite.
• Tender/Bidding, i.e. dispatch of the documents to
  the participating insurers questions to answer
  coordination with the participating insurers
  price negotiations, etc.
• Analysis of the submitted offers (price / service
  / benefit comparison).
• Creation of a summary document (pricing, service
  factors, differentiating factors).
• Presentation of the analysis / results.
• If required 2nd round of negotiations /
  organization of a beauty parade (invitation of
  the selected insurers in order to present their
  offers).
• Selection / decision.

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• Reasons why to opt for an international medical
  plan for local foreign employees in Singapore
• International cover enables the local overseas
  employees (mainly European citizens) to receive
  treatment in their home countries in case of a
  more severe incident.
• To provide continuous, comprehensive health care
  benefits for those whose employment takes them to
  another country during their international career
  with Julius Baer.
• Julius Baer have the guarantee that all local
  foreign hires have a comprehensive coverage (no
  lack of cover).
• No disparities - every eligible employee has the
  same level of coverage which will avoid
  conflicts.
• Cost advantages for the Bank (economies of
  scale), but also for the employees (instead of
  having individual insurance solutions).
• Easy and effective administration for the
  employees (focus on the job and not on
  administrative issues).

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• Julius Bär Singapore tender requirements
• A comprehensive product offer.
• Experience and reputation in the international
  medical insurance market.
• Local expertise in Asia/Pacific including a large
  provider network in Singapore.
• Regional claims centre and point of contact (same
  time zone).
• Easy and effective administration (claims
  handling) for the employees (fundamental
  condition).
• Cost-effectiveness including a certain premium
  stability for the future.
• Swiss continuation option (if possible).
• Implementation support.

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• Service offer of the leading health insurance
  providers
• Employees perspective (criteria to be fulfilled)
  
• Private medical insurance, i.e. free choice of
  hospitals and doctors, private ward.  
• No medical underwriting no exclusions, no
  waiting periods, no premium loadings.
• Easy and flexible claims reimbursement process.
• Multilingual 24 hour helpline, e-mail access to
  customer services team.
• Member website incl. access to global provider
  network, country information, claims information
  (reimbursement status), etc.  
• Large provider network mainly in Singapore, but
  also in the rest of the world (direct payment
  agreements).  
• Medical Assistance evacuation/repatriation,
  country guides, alarm centers, etc.  
• For employees leaving the group plan
  continuation option (no medical underwriting)
  with an individual product (if possible
  in-house).
• For employees returning to Switzerland
  continuation option.

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• Service offer of the leading health insurance
  providers
• Employers perspective (criteria to be fulfilled)
  
• Medical insurer with proven experience in
  Singapore.                 
• Dedicated account manager.
• Coverage for all nationalities (no restrictions).
  
• Comprehensive cover and flexible benefit design.
• Professional reporting capabilities, e.g. claims
  report, membership lists, etc.    
• Flexibility on invoicing processes (billing to
  subgroups possible).
• Alliances with domestic insurance companies
  and/or local provider networks.  
• Continuation option for employees leaving the
  Bank or returning to their home country. 

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• Leading providers in this very dynamic market
  (providers with
• a substantial book of business with multinational
  companies and/or international organisations)
• CIGNA International Probably the largest
  provider for corporate expat medical insurance
  solutions. Leading provider in Switzerland.
  Comprehensive service offer.
• Allianz Worldwide Care Grew considerably over
  the last years (very dynamic). Has got a large
  book of business with corporations (mainly in
  Europe).
• BUPA/IHI As largest local medical insurer
  (subsidiaries in many countries) they also have a
  substantial portfolio of international corporate
  clients. Not very active in CH.
• DKV Globality Relatively new in the expat
  medical insurance market, though already a large
  book of business mainly with German, Spanish and
  Benelux corporations. Benefits from the
  international network of its parent company
  Munich Re.
• Vanbreda International TPA provider. Largest
  provider in the international organization market
  and growing in the corporation sector.
• GMC and Mobility Benefits French TPAs. Large
  French portfolio and also a considerable number
  of group clients in the French part of CH.

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• Differentiating Factors (besides the costs)
• Proven experience with clients of a similar size
  and in a similar industry
• Service quality for both employer and employee
  (e.g. language capabilities)
• Claims handling Original invoices requested or
  claims by mail, fax or email accepted?
• Claims handling Any hidden costs for the
  employees?
• Claims centers in different regions?
• Treatment Pre-authorisation necessary?
• Premium payment frequency? Surcharges?
• Continuation options (international and Swiss)
• Size of the provider networks / number of direct
  payment agreements (mainly in the
  countries/cities your expats are located).
• Compliance
• Flexibility of the provider (product range? Cover
  for local employees? etc.)

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• Short list of health insurers invited to tender
• CIGNA International
• Key advantages Well known insurer in the expat
  community in Singapore, cooperation with a local
  hospital network in Singapore, very good service
  offer well represented in Switzerland (e.g.
  continuation, etc.).
• DKV Globality
• Key advantages Local expertise in Singapore
  (and Asia) thanks to a regional claims center (in
  Bangkok and China) very comprehensive benefits
  cost effective solution with a certain premium
  stability (premium guarantee for the first 2
  years).
• Vanbreda International
• Key advantages Local expertise thanks to a
  local representative and a local claims center in
  Malaysia. Comprehensive plans and a very good
  reputation with regard to service quality.

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• Results of the tender
• The winner of this tender was DKV/Globality.
  Reasons for this decision
• Local expertise with regional claims centers.
• Large provider network in Singapore.
• Very comprehensive benefits.
• Low premium costs / cost advantages for the bank
  and the employees.
• Premium guarantee for 2 years.
• No set up cost.
• DKV GLOBALITY provides global health insurance
  cover combined with local assistance services and
  local knowledge.
• Important remark
• The outcome of this exercise would not
  necessarily be the same for other clients, as
  provider offers can vary considerably from case
  to case. Tender processes undertaken by
  expatpartners in the same year (particularly with
  regard to premium costs) resulted in different
  recommendations.

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Julius Bär (CB) Christian Frener 41 58 888 46
67 christian.frener_at_juliusbaer.com expatpartners
ag Martin Bühler 41 44 280 68
68 mb_at_expatpartners.ch