Challenges
Short Description
Download Challenges...
Description
The Blue Cross SME Plan An alternative solution to traditional group benefits
Accelerating your commissions with the Blue Cross SME Plan An alternative to traditional group benefits
1. Challenges 2. Opportunities
Agenda
3. Productivity Multiplier! 4. SMEs Plan introduction
5. Ticket to success = SME Bootcamp
Challenges Challenges
Keeping a steady flow of qualified prospects coming into your pipeline Increasing your success rate when prospecting Generating ongoing revenue Generating recurring revenue
Challenges Keeping a steady flow of qualified prospects coming into your pipeline
Challenges
How much time and effort do you spend to get 10 new qualified leads/prospects a month?
What are you doing to achieve that?
Are you prospecting, networking, spending marketing dollars, getting referrals…?
Generating Ongoing Revenue How much time does it take to earn $5,000 in first year commission in one sale?
Opportunity
10 qualified leads = 2 appointments 2 appointments = 1 sale
Generating Recurring Revenue How do you get paid without making a new sale?
Opportunity
RENEWALS
The Accelerator SME Business from our top producers
Opportunity
Average policies per sale
10
Average premium per sale
$20,000
Average SME commission
$5,000 FYC $1,400 Renewal
This is what we refer to as a Productivity Multiplier!
SME Revenue Opportunity Opportunity
Success Factors Opportunity
Niche Provide products and services to a group that advisors and insurers have overlooked Network With whom do you have an affinity? Branding Yourself Being known in certain industries i.e. food processing, manufacturing, retail, medical, dental, etc. Unique product offerings Providing flexibility for both the owner and employees
Success Factors 99% of Ontario’s businesses are made up of small and medium size enterprises
Opportunity
50% of Ontario’s jobs are with small and medium size enterprises Average income of a fulltime SME employee in Ontario is $52,000
Source: Statistics Canada
Ontario SME Businesses Opportunity
Source: Statistics Canada
EMPLOYEES
BUSINESSES
5-9
60,607
10-19
44,306
20-49
33,298
50-99
12,167
Opportunity Summary Challenge #1
Opportunity
Keeping a steady flow of qualified prospects coming into your pipeline Opportunity #1 SMEs with no group plan are all looking for cost effective solutions to:
Source: Statistics Canada
Attract talent Keep good employees Keep employee motivated
Opportunity Summary Challenge #2 Generating ongoing revenue
Opportunity
Opportunity #2 Employee turnover creates opportunity Growing SMEs will contact you every time they hire a new employee
Source: Statistics Canada
Opportunity Summary Challenge #3 Generating recurring revenue
Opportunity
Opportunity #3 You get higher renewals than traditional group insurance Plus, a persistency bonus
Source: Statistics Canada
SME Plan An alternative to traditional group benefits
Target Customers Ideal for small businesses of 5 lives plus
Product
Eligibility Must have OHIP coverage
Product
Not hospitalized or disabled when the contracts comes into effect Must be able to meet all requirements of the SME declaration
Highlights Product
Combines all of the strengths of a small group plan with all of the strengths of an individual plan Flexibility
Portability Stability
Usability
Features Excellent selection of benefits with NO medical underwriting up to specified limits
Product
Ability for each employee to purchase additional amounts by completing a health statement (underwriting will apply) Can add Express Plan benefits to enhance coverage
Reduced Medical Underwriting 85% participation required
Product
Benefit Highlights Product
Disability Excellent and well priced ROP benefit Regular occupation to age 65 (optional) Non-cancellable Portable Life T-65 Can be converted anytime prior to age 65 to a T100 with no medical evidence (up to $200,000)
Benefit Highlights Drug Benefit Choice of $1,500/person/year or $10,000/person/year (with 2 additional health questions)
Product
Extended Health Choice of Regular or Enhanced benefits Dental No waiting period Root canals eligible immediately 1st year is pro-rated
Year
Amount Coinsurance
Year 1 $750
70%
Year 2 $1,000
75%
Year 3 $1,250
80%
Case Study #1 Family business (5 lives)
Case Study
Father, mother, two sons and a cousin
100% family content Problem: Unable to find traditional group coverage due to family content restrictions.
Solution: Purchase a Blue Vision SMEs Plan where each person selects different benefits that suit their needs.
Case Study #2 Case Study
Corporate Head Office (60 lives) Problem: Owner wanted comprehensive coverage for the administration staff, but only wanted to offer minimal benefits to the other employees. Solution: Owner purchased comprehensive coverage for the administration staff and paid $10 per month of benefits for each of his other employees. This also allowed the other employees to have access to preferred medical underwriting for other benefits which they were able to pay for on their own.
Case Study #3 New Machine Shop
Case Study
Problem: Need to insure 6 lives and had a budget of only $250 per month.
Solution for only $39 per employee per month: BENEFIT
AMOUNT
DI due to Accident
$1,000 per month
Term Life 65
$25,000
AD & Loss of Use
$25,000
Accidental Fracture
$5,000
Extended Health and Hospital Due to Accident
Case Study #4 Case Study
Manufacturing Company Problem: Only 9 of 17 employees wanted DI benefits Solution: 9 employees purchased $1,500 per month of DI due to Accident and Illness with a 30 day waiting period up to age 65 8 employees purchased $500 per month of DI due to Accident and Illness with a 120 day waiting period and a 2 year benefit so that the group could qualify for an SME Plan.
Case Study #5 Medical Clinic
Case Study
Problem: 5 life group. Only 4 employees needed benefits as the fifth had spousal benefits elsewhere. Group did not initially meet the minimum participation requirements of 85%. Solution:
Fifth employee purchased $10 of Express Plan benefits in order to meet the participation requirements.
Case Study #6 Retail Shop
Case Study
Problem: All 5 employees applied for the SME Plan and 2 employees were uninsurable.
Solution: SME was issued on the remaining 3 lives.
Case Study #7 Marketing Company
Case Study
Problem: Group of 12 where 2 employees have existing individual coverage with Blue Cross.
Solution: Blue Cross issued the SME and included the 2 members with the individual benefits as part of the SME participation. The group now qualifies for higher benefits 11+ lives
Case Study #8 Office
Case Study
Problem: Group has $3,000 per month of LTD coverage (5 year regular occupation) with another group plan.
Solution: Blue Cross issued an SME and grandfathered $3,000 per month of DI (regular occupation to age 65) with ROP.
Summary
Assistance Program
http://www.blueadvantage.ca
How to successfully sell an SME SME Boot Camp
Step 1 Attend Blue Cross SME Boot Camp Step 2 Look for SME prospects who…
Need to attract talent Need to retain good employees Have no group insurance or are not pleased with current insurer Want to differentiate themselves from their competitors Are growing
Step 3 Get trained and coached by your Blue Cross Sales Representative Step 4 Sign up TODAY
View more...
Comments