Worksite Marketing

1

Nebraska Actuaries Club

• Worksite Marketing
• of Voluntary Products
• Marc Lower, CLU, ChFC, RHU
• Vice President-Worksite Marketing

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Outline for Today

• Define Worksite Marketing
• Identify the primary customer
• Discuss the primary customers needs
• Discuss potential customer solutions
• Q A

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Definition of Worksite Marketing

• Employer-sponsored program
• Voluntary Products offered to employees and/or
  employees dependents
• Employee pays 100 of premium for product(s)
• Usually through payroll deduction

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Common Theme for Todays Benefit Managers

• Weve cut your budget by 10 and/or...
• Lower our benefit expensesand/or...
• Increase the retention of employeesand/or...
• Make our benefit package more attractive to new
  applicants

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Employers Concerns

• Attract and retain talented employees
• The ability to pass cost increases onto employees
• Focus H.R. resources on recruiting and training

Source Deloitte Touche, December 2000
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Employer Spending on Benefits
Source Employee Benefit Research Institute, 2002
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Employee Feedback

• 60 of employees rank health insurance as the
  most important benefit an employer offers
• 77 of employees reported that benefits are very
  important in their decision to accept or reject a
  job

Source Employee Benefit Research Institute, 2002
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Types of Benefits Employers Purchase
Source Worksite Marketing of Voluntary Products,
LIMRA, 1999
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The Primary Customer

• Distributor
• Sell benefits
• Employee
• Purchase benefits
• Employer
• Offer benefits

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Profile of the Distributor

• Employee benefit brokers
• Individual Agents and brokers
• Multi-line brokers
• Worksite marketing specialists

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Employee Appeal

• May be the only access to coverage
• Convenience of buying at work/payroll deduction
• Easy to understand
• Low pressure sale (educational)
• Concept of employer sponsorship

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What Employees Like About Voluntary Benefits
In Agreement

• Better rates / group rates 74
• Payments are made through PD 71
• Convenience of purchase 67
• Employer will provide objective information on
  products/services 66
• I trust my employer to find the best products
  and services 56
• I will get better customer service from the
  provider 55

Source MetLife Employees Welcome Voluntary
Benefits, 2000
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Employer Appeal

• Enhances current benefit package
• Increasing retention and recruitment
• Doesn't require employer contribution
• Lower benefit expenses
• Promotes cost-sharing of benefits
• Increases understanding of cost/benefit
• Gives employee more choice
• Meets expanded range of needs

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Reasons Employers Offer Voluntary Benefits

• Employees asked for benefit 26
• Would get better benefits 18
• Give employees more choices 14
• Offer at no cost 12
• Improve employee satisfaction 12
• Offer a wide array of products 10
• Attract / retain good employees 9

Source Worksite Marketing of Voluntary Products,
LIMRA, 1999
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The Employers Needs

• Price
• Renewable, Age Banded, or Composite Rates
• Product(s)
• Individual or Group
• Life, Health or Disability
• Service
• Enrollment Communication
• Administration/Billing

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Voluntary Products Employers Currently Offer

• All Offering One
• Employers
  Voluntary Benefit
• Suppl Life (employee) 27 64
• Suppl Life (dependent) 19 46
• Cancer plan 15 36
• STD 13 30
• LTD 13 30
• ADD 10 23
• Vision 8 18
• Suppl Medical 8 18
• Dental 7 18

Source Worksite Marketing of Voluntary Products,
LIMRA, 1999
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Employer Interest In Voluntary Products
Benefits Employers Would Consider Adding
Total
Suppl Life (employee) Dental Vision Medical
plan STD LTD Prescription LTC
17 17 9 7 6 5 5 5
Source Worksite Marketing of Voluntary Products,
LIMRA, 1999
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Employer Solutions

• Most Important Factors
• Enrollment Communication
• Billing and Administration

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Enrollment and Eligibility

• Both Web and IVR enrollment capabilities
• Data captured in a single database
• Enrollment is rules driven
• Web bill presentment and reconciliation tool
• Ability to exchange data with Payroll, HRIS and
  other vendors
• Automation impact on Price, Product and
  Participation

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Some Final Thoughts...

• Employer endorsement
• Agreement to see employees on company time
• Advance notice of product offering and dates
• Simplicity of sale
• Enrollment of new hires
• Effective use of technology
• Goal Maximize Employee Participation

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Questions???

• Marc Lower, CLU, ChFC, RHU
• 402-351-2859
• marc.lower_at_mutualofomaha.com