Presenting to the client

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

2. 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 have we done?

3. 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 Features and principals that we must apply in the final proposal

4. 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 What are we trying to accomplish?

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

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

7. 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?

8. 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?

9. 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

10. Utilize our strategy sheet, section 5 to present one idea. Your goal is to get the client to reach for their pain medication and direct the pain to the incumbent. Collective Wisdom

11. Agenda • The Proposal

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

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

14. Seek to understand…

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

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

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

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

19. 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

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

21. Health coverage premiums are on the rise

22. 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) Source: U.S. Census Bureau

23. The Challenge

24. Collective Wisdom How can we help?

25. Collective Wisdom at WORK

26. 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.

27. 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?

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

29. 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 ?

31. 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.

32. 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?

33. 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

34. Additional Findings

35. Employee Benefit Statements

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

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

38. 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

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

40. Service Plan – Section 6 RFD Stewardship Report Time line Under promise over deliver Meet early – don’t wait for the renewal – use the utilization review process for early intervention – beat

41. Timeline Timeline

42. 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 • Relationships – legacy relationship • Timing---Why perfect? • Administrative • Change • P&C is with Brown & Brown. • All eggs in one basket • Me • Service Team • Current open claims • Market place reputation • Personal bribery • Price

43. 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?

44. Get prospect engaged 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 Set up final presentation using the client’s own words Simultaneriously marketing is working on the best program for P&C and for Benefits we procure a AOR

45. I will prospect every day, without rest, to achieve consistent and sustainable results. I will execute each opportunity as if it will be my last opportunity. I will qualify each prospect with the greatest certainty, as if my life depended on it. I will be the greatest salesman in the world and will execute MY “sales process” with great care, enthusiasm and confidence. We will win our prospect’s business, because we are more knowledgeable than our competitors. We will execute this objective by: Gaining attention through innovation & creativity, Creating interest through product knowledge, Creating desire by utilizing my product knowledge and showmanship, Gaining conviction by backing up my claims with evidence and Closing the sale by talking about the reasons for and against, if I must. Mission Statement