INTRODUCING: A Unique and Leading Edge Group Insurance Plan for Global Advisors March 2003 Agenda: 1. About Benefit Partners • Who Are We? • Products/Services • Our Relationship with Global 2. Why Sell Group Insurance? 3. Benefit Partners’ Unique/Leading Edge Product • What is it? • How does it differ from the marketplace? Agenda: 3. Benefit Partners’ Unique/Leading Edge Product • Target Markets • Case Size • Industry Type • Geographic Location 4. Marketing Support • Sales Meetings • Reports/Renewals/Ongoing Client Service • Marketing Material Agenda: 5. Financial Details • Agents Agreements • Commission Splits • Group Insurance Plans • E-Commerce Sales – Advisors’ Groups • RESP’s – Advisors’ Groups • RESP’s – Benefit Partners’ Groups • Account Ownership/Vesting • Account Protection • How is Commission Paid? • Production Contests Agenda: 6. Question and Answer Session 7. Draw Prizes 8. Lunch 1. About Benefit Partners Who Are We? • An independent professional employee benefits and pension consultancy. • Operating provincially with growth plans to become national in nature. • Experts in the field of collective purchasing benefit plans, e.g.. Consulting Engineers of Ontario (CEO) and Ambulance Service Alliance of Ontario. • Our CEO plan has a 97.5% client retention rate over 5 years! • Clients range from large provincial associations to corporations both public (school boards) and private. 1. About Benefit Partners - continued Products/Services • We provide a complete range of professional advisory services. • We have a compliment of dedicated service personnel and underwriting staff in order to provide timely and accurate service to all clients of the firm. • We have been provided with a mandate to design (recently completed) and market a new collective purchasing plan for The Employers Co-Operative. • We are making this new plan available on an exclusive basis through all Global advisors. 1. About Benefit Partners - continued Our Relationship with Global • We act as benefit plan consultants to the Global Group of Companies and its employees. • We approached Global with the idea of designing a specialized benefits plan that would be available on an exclusive basis through its advisors. • We provide benefits and pension consulting services so as to be able to round out the complete line of financial services available through Global advisors so that they can truly offer one-stop shopping to their clientele. 2. Why Sell Group Insurance? The Facts • Add to revenue of your business or practice. • Sometimes you may be calling a prospect and he is not interested in the product/service that you are offering at that time, group insurance and specifically the unique and leading edge product that we have designed for Global advisors, might create that opportunity to meet with the prospect and therefore allow you to build a relationship for future sales. • Most companies already have group insurance plans and are almost always interested in opportunities to save their businesses $. • Use a door opener for other lines of business . 2. Why Sell Group Insurance? - continued The Facts • Create opportunities to indirectly prospect to all employees within the group. • Create a renewable source of income, group insurance commission typically increases each year with client renewals and remains payable to an advisor as long as the client is retained. • Build a wall around your client (golden handcuffs) by offering more services than you currently provide. • The Bank of Montreal completed research wherein it found out that the bank achieves a 95% client retention rate when it has sold a client 3 or more of its products/services! You can do the same with your clients! 3. Benefit Partners’ Unique/Leading Edge Product What Is It? • Group Insurance is priced based on the level of claims that an insurance company expects to pay plus its administration expenses. • The administration expenses that an insurance company charges a single company is based on its size (number of employees) or amount of premium that it alone pays. • Through The Employers Co-Operative, which is a buying group for a variety of services for companies, we have negotiated a bulk purchase discount on insurance company administrative expense such that the group insurance plan that is being made available to Global advisors should be the most cost effective plan that a company can buy. 3. Benefit Partners’ Unique/Leading Edge Product What Is It? - Continued • The Employers Co-Operative plan is priced on the basis of a $2,000,000 insurance pool. An individual company would have to have at least 500 employees by itself to arrive at the discounts that we can provide! • We use three leading Canadian insurance companies for the plan and the plan is exclusive to Benefit Partners. 3. Benefit Partners’ Unique/Leading Edge Product What Is It? – Continued Sample Projected Savings for a Prospective Client Benefits Savings Calculator Extended Health Care Your Plan T.E.C. Plan Premium $60,000 $60,000 Paid or Cash Claims $55,000 $55,000 Target Loss Ratio 75% 86% Projected Health Care Trend/Inflation 15% 15% Projected Renewal Premium $84,333 $73,547 Renewal Rate Increase/(Decrease) 41% 23% Projected Savings with The Employers Co-Operative Plan $10,787 13% 3. Benefit Partners’ Unique/Leading Edge Product How Does it Differ From the Marketplace? • In addition to the lower expense levels (which translate into lower premiums), the plan also offers the following differences from the marketplace: • Increased influence on the insurance companies offering protection against dramatic increases in rates, • Complete autonomy over plan design and claims experience – therefore your premium reflects what your employees claim and not others, • Quarterly claims experience review to help predict future premiums and to develop a benefit plan strategic plan with. 3. Benefit Partners’ Unique/Leading Edge Product Introducing Work Life Solutions – the online benefits revolution! • The first of its kind in Canada, Worklifesolutions.ca (WLS) is a personalized work/life benefits web site offering a national child, self and elder care referral service, wellness program, emergency on-line medical dossier, family health and work/life libraries, handy financial calculators, and group-rates on products and services that cater to life event needs. This benefit is included in all benefit plans through us. • WLS is an independently hosted web site that employers/employees gain automatic membership in through the TEC benefit plan, and that they can access from work, home or a cyber-café. • Sample snapshots highlighting this website follow. 3. Benefit Partners’ Unique/Leading Edge Product Other Revenue Opportunities • Through the Work Life Solutions Website, every group client becomes a conduit through which to earn other sources of revenue. • Information regarding Global RESP’s will be provided to all employees who are looking for help when it comes to saving for a child’s education. • The WLS website will work as a lead generator for RESP sales. • All leads will be sent to Benefit Partners and will then be routed to the Global agent that was involved in the group sale. • Leads from existing Benefit Partner clientele will be distributed to Global advisors as well. 3. Benefit Partners’ Unique/Leading Edge Product Other Revenue Opportunities - continued • The WLS website also has other products that generate sales fees. These will also be credited to the Global advisor as purchased by employees. • The WLS website will also generate other insurance sales opportunities – all of which go back to the applicable Global advisor. • Other sales leads from existing Benefit Partner clientele will also be shared with Global advisors. 3. Benefit Partners’ Unique/Leading Edge Product Other Revenue Opportunities - continued • In most instances, Benefit Partners conducts employee communication sessions as a method by which to introduce a new group insurance plan. • As the WLS benefit will become a very distinct marketing method to distinguish yourselves and ourselves from the competition, it will provide an excellent opportunity to create awareness for the Global RESP product as part of the employee communication sessions. • EVERY GROUP INSURANCE PLAN BECOMES AN OPPORTUNITY TO SELL MANY OTHER OF YOUR CORE PRODUCTS! 3. Benefit Partners’ Unique/Leading Edge Product Target Markets • Case Size • 10 lives and up • Ideally suited for groups of less than 200 employees • Industry Type • Virtually any industry – however insurance companies have the right to refuse any risk. • Geographic Location • Ontario 4. Marketing Support How will Benefit Partners Support You? • Sales Meetings • In the insurance industry we are always faced with the prospect of providing ‘quotes’ to a prospective client in the hope that the client will buy the product. • This is especially true with group insurance plans. Unlike many other financial services products, a less expensive group insurance quote can be used by a prospective client to improve the rates of its current plan. • You arrange the meeting and we will go with you to close the sale! Our approach requires that we receive a written agreement, in advance of any work being done, by all new prospects. We will be your group experts! 4. Marketing Support How will Benefit Partners Support You? • Sales Meetings • It has been our experience that unless a client is prepared to sign our agreement that there is a very low probability of ever selling that client! • We will make it easy to determine serious clients from those who never intend to work with us! • This approach will allow all of us to focus on legitimate sales opportunities. • Some circumstances might exist where we will quote on a speculative basis, however they will be the exception. 4. Marketing Support How will Benefit Partners Support You? • Reports/Renewals/Ongoing Client Service • Benefit Partners will provide you with all of the necessary reports – both new case marketing and renewal as well as provide all ongoing client service. • In other words we become your group department with no investment on your part. • We offer you a turn-key benefits operation! 4. Marketing Support How will Benefit Partners Support You? • Marketing Material • We will provide you with access to the following marketing material: • Pre-approach letters • Marketing brochures (mid 2003) – in both hard copy and PDF file format • The Employers Co-Operative Website (scheduled completion date of April 15th, 2003) 5. Financial Details Agents Agreements • An agreement between Benefit Partners and any interested Global advisor will be required. Commission Splits – Group Insurance Plans Rolling 12 Month Annualized Commission Year 1 Renewal < $5,000 50% 30% $5,000 - $15,000 50% 35% $15,000 - $25,000 50% 40% $25,000 – $50,000 50% 45% > $50,000 50% 50% * Advisors will receive 75% of the 1st year commission on the first group sold 5. Financial Details Commission Splits – ECommerce Sales - Advisors’ Groups • Split as per group insurance RESP’s - Advisors’ Groups • 100% to advisor RESP’s - Benefit Partners’ Groups • 50/50 All leads generated from an Advisors’ Group will be given to the Advisor. 5. Financial Details Account Ownership/Vesting • An advisors share of any group insurance plan is owned by and vested with the advisor. • Benefit Partners will purchase an advisors’ share if requested and upon terms that are mutually satisfactory to both parties. Account Protection • Benefit Partners will only recognize the original advisor on any group insurance plan sold through it. • In the event that an outside agency/brokerage takes an account away from Benefit Partners/Global Advisor, the insurance company will immediately re-price the program on a stand-alone basis. WLS will discontinue as a benefit to the company. 5. Financial Details How is Commission Paid? • Group insurance commission is usually paid approximately 60 days after the effective date of a new group. • Depending on the size of the group and the duration of the initial rate guarantee period, the amount of the commission advance will vary. • Benefit Partners will make direct payment to the advisors bank account his/her share of the commission for any new group insurance plan or renewal in the same form as it has received from the insurance company. • Global will be allowed the right to audit commission payments to its advisors. 5. Financial Details Production Contests • From time to time Benefit Partners will hold production contests for Global Advisors. • We will very shortly be announcing a contest for the spring of 2003! 6. Question and Answer Session • Thank you for your attendance and attention to the presentation! • If you have any questions we would be pleased to address them at this time! 7. Draw Prizes • At this time we would like to draw 2 business cards from those in attendance for some Benefit Partners golf shirts! 8. Lunch Thank You For Attending! We Look Forward to Working With You!