Alain ParentDirector of Sales, Group Insurance

Assumption Life

Agenda

• Who is responsible for our health?

• Why are the cost of Health Care increasing?

• How to control cost?

Questions

Personal evaluation of your group insurance plan provided by your employer…

A – Very generous

B – Generous

C – We would like to increase the coverages

D – Decrease coverages or increase co-payment

E – Status-quo

The additional amounts required will be provided from ?

There is only one budget…

Questions

Who is responsible for your health?

A – Medicare?

B – Your physician?

C – Your pharmacist?

D – Your employer?

E – You?

Questions

Who pays for your health care?

A – The governement, with your taxes?

B – Your employer, group insurance?

C – The insurer?

D – You?

E – A combination of A, B, C & D

Rate Calculation

Risk: Life, AD&D, Dependent Life• Rates are calculated based on the demographic factors of

the group (salary, age, insurance amounts, sex)

Experience: Health, Dental• Rates are calculated based on the group’s overall

utilisation experience and the projected inflation rates.• With ASO plans: the claims plus the ASO fees.

LTD:• Combination of risk and experience

Claims Experience

July 2009 – May 2010 Loss Ratio

HealthPremiumsClaims

$74,166$61,688 83.18%

DentalPremiumsClaims

$22,395$18,448 82.38%

• Health premiums will be adjusted to remove all pooling and travel charges.

• Health claims will be adjusted to remove all large amount drug pooled and travel claims.

• The incurred but not reported claims are not included in this loss-ratio, but they will be added.

Claims Experience - Health

July 2009 – May 2010

Hospitalization $130 0.21%

Drugs $45,192 73.26%

Vision Care $5,370 8.71%

Extended Health $10,994 17.82%

Travel Insurance $0 0%

Total $61,688 100%

Claims Experience - Dental

July 2009 – May 2010

Basic Care $18,448 100%

Major Restorations $0 0%

Prosthetics $0 0%

Orthodontics $0 0%

Total $18,448 100%

Why is the cost of health care increasing?

Possible causes of increasing healthcare cost

• Age of workforce

• Lifestyle

• Increasing rates of utilization

• Increasing rates of chronic disease

• Expensive new drugs

• Cost-shifting by government

Increasing Healthcare Cost

Statistics Canada reports in 2004

• ADULTS– 23.1% were obese– 36.1% were overweight

• CHILDREN ages 2 to 17 (National average)– 8% were obese– 18% were overweight

Conditions resulting from being overweight and obese

• Diabetes

• High cholesterol

• Ulcer

• Depression

• High Blood Pressure

• …

How to control cost?

Health and Dental

Cost Control

Who contributes to the choice or dispensing of drugs?

• Patient (Television, magazines, peers, beliefs, internet, etc.)

• Doctor (Pharmaceutical rep., conferences)

• Pharmacist (Cost, mark-up, dispensing fee)

Dispensing Fees

8.67 8.38 8.68

6.99 6.97 6.72

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When the number of prescriptions paid for in a year for a group reaches the thousands, the difference in a dispensing fee can have a significant impact on the insurance cost.

Cost Control (Health Care)

How can you make a difference when choosing DRUGS?

• Dispensing fees differences

• Generics available

• Drug supply to reduce number of dispensing fees

• Quantity dispensed versus requirement

• Exclude over-the-counter drugs

• Alternatives to drugs

Cost Control (Dental Care)

Options are available

• Is recall exam every 6 months necessary?

• Do I really need another X-ray?

• Ask the dentist what your options are.

• Dentists cost differ.

• Current fee guide

What Can You Do?

Education

• Learn as much as you can about your condition through other sources (request resource information from your doctor, internet, news, work place resources).

• Look for opportunities to improve your own personal wellness.

• Joining a gym is not the only path to better wellness. Wellness consists of making smart choices every day because you and your family’s health are worth it.

• Choices, not chance, determines the improvement of your own health.

Ideas for Healthy Living

EAT LESSEAT LESS

TRIM FAT FROM MEATTRIM FAT FROM MEAT

LIMIT ALCOHOLLIMIT ALCOHOL

QUIT SMOKINGQUIT SMOKING

TAKE A WALKTAKE A WALK

LEARN TO SINGLEARN TO SING

JOIN A GYMJOIN A GYM

TAKE A YOGA CLASSTAKE A YOGA CLASS

PLAY WITH YOUR KIDSPLAY WITH YOUR KIDS

WALK THE DOGWALK THE DOG

GO FOR A RUNGO FOR A RUN

CLIMB A TREECLIMB A TREE

LEARN TO DANCELEARN TO DANCE

PLAY IN THE SNOWPLAY IN THE SNOW

RIDE YOUR BIKERIDE YOUR BIKE

TAKE COOKING CLASSTAKE COOKING CLASS

SWIMSWIM

DRINK MORE WATERDRINK MORE WATER

GET PLENTY OF RESTGET PLENTY OF REST

GO CAMPINGGO CAMPING

JOIN A PADDLE CLUBJOIN A PADDLE CLUB

BUILD A SANDCASTLEBUILD A SANDCASTLE

EAT MORE FRUITEAT MORE FRUIT

GO SNOWSHOEINGGO SNOWSHOEING

PRACTISE BEING GRATEFULPRACTISE BEING GRATEFUL

MEET NEW PEOPLEMEET NEW PEOPLE

TRY ROCKCLIMBINGTRY ROCKCLIMBING

LISTEN TO THE OCEANLISTEN TO THE OCEAN

LEARN TO PLAY AN LEARN TO PLAY AN

INSTRUMENTINSTRUMENT

TAKE AN ART CLASSTAKE AN ART CLASS

GO SKATING ON THE PONDGO SKATING ON THE POND

WATCH THE BIRDSWATCH THE BIRDS

GO CROSS COUNTRY SKIINGGO CROSS COUNTRY SKIING

LEAVE YOUR CAR AT HOMELEAVE YOUR CAR AT HOME

RAKE SOME LEAVESRAKE SOME LEAVES

PLANT A GRADENPLANT A GRADEN

VISIT YOUR FRIENDSVISIT YOUR FRIENDS

ENJOY THE BEAUTY OF ENJOY THE BEAUTY OF

NATURENATURE

SMILE SMILE

LISTEN TO YOUR FAVORITE LISTEN TO YOUR FAVORITE

MUSICMUSIC

GAZE THE STARSGAZE THE STARS

ATTEND A PLAYATTEND A PLAY

LEARN A SECOND LANGUAGELEARN A SECOND LANGUAGE

EAT MORE VEGETABLESEAT MORE VEGETABLES

CUT DOWN ON SALTCUT DOWN ON SALT

READ A GOOD BOOKREAD A GOOD BOOK

VOLUNTEER YOUR TIMEVOLUNTEER YOUR TIME

MEDITATEMEDITATE

RIDE A HORSERIDE A HORSE

LEARN ABOUT ANOTHER LEARN ABOUT ANOTHER

CULTURECULTURE

Full range of benefits or Health and Dental only *

Evidence of insurability for 3-4-5 lives (EHC only) *

Grandfathering clause (Copy of last billing statement)

Less than 41% family content – OK for LTD (2 out of 5)

Less than 50% government funding – OK for LTD

•One year in business

•Extended Healthcare renewal rates below $120 Single / $300 Family

•No active employee on disability *

•Not a home-based business

•One year in business

•Extended Healthcare renewal rates below $120 Single / $300 Family

•Claims experience: 9 months

•Claims experience must be within the last 6 months

Standard Commission Structures

* As much as flat 15% commission on small group!

Bonus:On First-Year Commissions

CreditedThe group insurance bonus is credited to the agent’s account at the beginning of each year , on the preceding year’s group insurance commissions.

Bonus:Total Net Commissions

CreditedThe group insurance bonus is credited to the agent’s account at the beginning of each year , on the preceding year’s group insurance commissions.

Contest Period:

January 3rd – October 30th, 2011

Two Spots are reserved for Group Insurance producers…

1 - Top Spot

2 – Wild Card

(Minimum $250,000 of annualized premiums)

Contest Period

Janurary 1st, 2010 – December 31st, 2011

Qualification Requirements

$1,2M of annualized premiums (net of terminations)