Presenting to the client

During any stage of the sales process it’s the actor not the script! Execution Presenting to the client

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 Where are we?

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. Collective Wisdom

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? Group Feedback

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? Features and principals

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 Goal

One Unlimited Two How many Benefit Broker’s can access a carrier at the same time?

Volume Negotiating Relationship Identifying different options A broker can get a different price by?

Plan design ideas Cost Containment initiatives Services/ Resources Long term strategy All of the above Based on what you know, you should choose a broker for their?

By understanding how they can help you quoting Case studies Identifying value added services and expertise Based on the last three slides what is best way to choose a broker?

Agenda • Where the pain talks and bullshit walks.

Village of Johnson City Presented by Tim Thomas – Assistant Vice President of Employee Benefits Jeff Wittig – Senior Vice President of Employee Benefits

Agenda • The Problem • Analysis Recap • The Brown & Brown Advantage • Village of Johnson City Analysis and Solutions • Why Brown & Brown?

Seek to understand…

In detail A summary Certain items Just for viewing In what way do you review this information

Agenda • Summary of the Challenge and F&B’s

Major Drivers of Rising Costs Where the premium dollars go… Medical Benefits Sample 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.

Major Cost Drivers: Age Percentage of the Top Spenders by Age Group Sample The Empire State Data Center Population Estimate Program, accessed October 2007

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... Sample 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

Health spending consistently exceeds inflation Health care spending vs. inflation Percentage change compared with the previous year Sample Source: Kaiser Family Foundation, using National Health Expenditure data from CMS

Health coverage premiums are on the rise Sample

All of these Pressures Lead to an Unsustainable Trend Government-based coverage among adults (ages 20-64) Employment-based coverage among adults (ages 20-64) Sample Source: U.S. Census Bureau

The Challenge

Collective Wisdom How can we help?

The Black Box

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 Setting up the Final Presentation

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 Analysis Findings Recommendations • 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 • Would like to implement wellness but not sure which areas to focus on. • Very interested in a program. A FOUNDATION OF THE CUSTOMERS WORDS WITH RECOMMENDATIONS TO MEET THEIR OBJECTIVES AND GOALS

To engage our prospect To collect data for a survey To get the prospect talking To give us perspective Why do we sometimes ask questions before we make our point?

Backing up claims Sincerity Through your relationship Hard work Confidence How do you gain conviction from your client?

You are knowledgeable You have wellness experience You understand exactly what they have and have not done They trust you This slide will only work, relative to creating desire if ?

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.

Conviction Closing Desire Attention What is the purpose of this last slide?

Cost Strategies continued... Analysis Findings Recommendations • 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 • “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.” 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

Concise Clear Unique & Original Inexpensive What is most important about the final proposal

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? Closing

Showmanship Painting mental pictures Being specific Being Socratic All of the above How do you create desire at your final presentation?

Service Plan – Section 6 RFD Time line

Why Brown & Brown REASONS FOR REASONS AGAINST • 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 • 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

Make sure your client will not give the incumbent a last look Having the best price Having the best program Understand what the client is thinking The most important thing in getting an order is to?

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

Presenting to the client