Life InsuranceAlternative Distribution Channels

Worksite Marketing in Selected Markets 

A Paper presented to the Global Conference of Actuaries

New Delhi, 15-16th February 2005 

John Mungall, FFAAEGON

What is Worksite Marketing?

• Selling products through the affinity of an employer relationship

• Leverage vendor’s relationships with employers

• Delivery via web, phone, mail, and face-to-face.

• Varies by market

Why Worksite Marketing?

• Opens up large market• Benefits from employer

endorsement• Employer moral responsibility• Government initiatives• Discount, comfort,ease of purchase

& payment

The US Market

Definition: “Voluntary, employee-paid, insurance and financial products, paid by payroll deduction”

In force premiums of US$11.6 billionTop company sold $1.1 billion of new

business in 2002

US Products

• Life – top up to employer plan• Health – “gap fill” to employer paid

benefit, e.g., to cover $2000 deductible

• Disability income• Critical illness• Vision, dental

US Case Study

Who? Major retailer, US wide store network

Why? Health benefit cost reduction => 10,000 associates lost entitlement to benefit

What? Broker designed package of medical, term, dental benefits,with low & high options. Paid by payroll deduction

US Case Study (2)

How? Brochure issued by desk-drop. Call centre engaged, website set up, to handle enrolment

What next? Employees sign to acknowledge receipt of brochure. One-to-one advice sessions.

By second renewal, take-up increased to 60%

Provider success criteria

• Strategic focus – bottom line accountability

• Distribution – separate distribution team

• Product – depth and quality• Administration – “price to play”

Why Worksite Marketing? – India

Crucial issues:• Employer benevolence• Replacement of employer paid benefits• Payment by payroll deduction• Gov’t initiatives, e.g., demographic

imperative, health & pensions• For vendors, how to get to the decision

makers in employers?

Life InsuranceAlternative Distribution Channels

Worksite Marketing in Selected Markets 

A Paper presented to the Global Conference of Actuaries

New Delhi, 15-16th February 2005 

John Mungall, FFAAEGON