Learn about how to effectively shop for employee benefit plans by understanding the different type of plans, how pricing works and what to ask your advisor.

1. Shopping the market
for group benefits
beneplan.ca
President, Beneplan
Vince Principato

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2
“I just got a quote for our team’s health benefits
plan, how do I know if it’s a good deal?”

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Agenda
1. Benefits At A Glance
2. Two Main Funding Approaches
3. Fully Insured vs. Self Insured (ASO)
4. Pricing Of Benefits And Renewal Factors
5. The Hydro Analogy to Benefit Pricing
6. Marketing “Lowball” Prices
7. What To Ask Your Broker
8. Case Study

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Benefits at a Glance
Employee Benefits has been around for a long time and with a few exceptions,
the offering and pricing model has not changed much over the last 20 years
Benefits continue to rise in
cost by an average of 8%
YOY, mainly due to drug
costs
Aside from Salaries &
Rent, Health insurance is
top 3 expense for
employers

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Accountants
How do we
control cost?
Everyone has an interest

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Accountants
How do we
control cost?
Plan Administrators
How can we administer
benefits as efficiently as
possible?
Everyone has an interest

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Accountants
How do we
control cost?
HR Managers
Are we offering the best to
our employees and new
hires?
Plan Administrators
How can we administer
benefits as efficiently as
possible?
Everyone has an interest

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Accountants
How do we
control cost?
Employees
I want more and
better coverage!
HR Managers
Are we offering the best to
our employees and new
hires?
Plan Administrators
How can we administer
benefits as efficiently as
possible?
Everyone has an interest

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Accountants
How do we
control cost?
Employees
I want more and
better coverage!
Owners
How do I make
everyone happy?
HR Managers
Are we offering the best to
our employees and new
hires?
Plan Administrators
How can we administer
benefits as efficiently as
possible?
Everyone has an interest

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How can all of these perspectives be
met and reconciled?
…understanding the pricing methodology!

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How can all of these perspectives be
met and reconciled?
…understanding the pricing methodology!

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2 Categories of Benefits
Pooled BenefitsExperience Rated Benefits
• Life, Accidental Death,
Long Term Disability
• Benefits rarely realized,
difficult to predict
• Pricing of this benefit is complex:
actuaries make predictions based
on group demographics, men vs
women, industry type etc.
• Prescription Drugs, Dental,
Vision, Paramedical etc.
• Benefits used on regular
basis, predictable
• Pricing of this benefit is simple:
previous claims + fees

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Experience Rated Benefits
There are 2 ways to go about funding your experience rated benefits (Drugs, Dental, Vision, Paramedical etc.)
Fully Insured
Low Risk
• Your company pays Insurer to take
on all the risk and pay all the claims
• No refunds of premiums or deficits
for employer
• Higher cost because of the Insurer
fee structure and risk-taking
• Typically reserved for smaller
groups of less than 50 employees
Self Insured (ASO)
High Risk
• Contracts the Insurer or Third Party
Administrator (TPA) to run their benefits
programs at a specific fee to process claims
• Your company is “the insurer” by paying all
the claims and assuming all risk
• If there is surplus, company keeps, if there is
deficit, company must pay out of pocket to cover
• Typically reserved for larger groups of 100+ employees

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Experience Rated Benefits
There are 2 ways to go about funding your experience rated benefits (Drugs, Dental, Vision, Paramedical etc.)
Fully Insured
Low Risk
Self Insured (ASO)
High Risk
Stop Loss
Level
$10K or $15K

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More employees = less claims volatility

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Which funding arrangement
works best for your business?
10
Beneplan

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“My renewal rates have just gone up! I
don’t understand why it got so much
more expensive!”

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Premiums = Claims + Expenses
Benefit Pricing & Renewal is simply an exercise in
budgeting and projections.

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Where Do My Premiums Go?
The vast majority of paid premium is used to directly pay claims and remaining portion is
needed to pay administrative expenses. These figures vary based on size of group.
Admin
Fees
28%
Paid
Claim
s
72%
2.2%
5.1%
10%
10.7
%
Advisor
Commissions
Profit
Taxes
Overhead

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Renewal Factors for Experience Rated Benefits
IBNRTarget Loss Ratio Trend Credibility Stop Loss Charges

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Represents the insurer’s admin fees, margins and overhead. It is
expressed as % of premiums that go towards covering claims and
can range between 71%-84%.
Ex: If TLR was 80%, then 80% of premiums go towards claims
and 20% go towards insurer admin fees which actually represents
a 25% margin (20:80 or 1:4 ratio).
Renewal Factors for Experience Rated Benefits
IBNRTarget Loss Ratio Trend Credibility Stop Loss Level

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IBNR = Incurred But Not Reported Reserves, aka Incurred But Not
Reported Claims.
Represents a fund of money that insurers charge for and
“employers” need to fund for “time delayed” claims.
An example of “time delayed” claims is when an Employer leaves
an insurer on November 30th but October and November claims
are received by the insurer in December. The IBNR fund is used to
pay these claims.
Renewal Factors for Experience Rated Benefits
IBNRTarget Loss Ratio Trend Credibility Stop Loss Level

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Renewal Factors for Experience Rated Benefits
IBNRTarget Loss Ratio Trend Credibility Stop Loss Level

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Inflation % to account for the rise of health, drug and dental
costs. Dental is dictated by the dental fee guide. Health & drug
is dictated by new medications on the market & provincial health
plan changes.
Renewal Factors for Experience Rated Benefits
Target Loss Ratio Trend CredibilityIBNR Stop Loss Level

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Expressed as a % of how much the underwriter believes the
claims experience of the company. The more employees and
longer your company has benefits, the higher the credibility.
Renewal Factors for Experience Rated Benefits
IBNRTarget Loss Ratio Trend Credibility Stop Loss Level

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Also referred to as Pooling, it is re-insurance coverage that protects employers for
claims that exceed predetermined levels (ie drug costs exceeding $10,000 per
employee per year). Think of it as the employer’s deductible per employee.
Renewal Factors for Experience Rated Benefits
IBNRTarget Loss Ratio Trend Credibility Stop Loss Level
Stop Loss
Level
Insurer Pays
Employer Pays
$10,000

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The Hydro Analogy To Benefit Pricing
Assume you are a newly hired accountant and your manager has
asked you to prepare a 2020 budget for the company’s hydro.
What do you do?

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Start with Historical
Let’s assume you find the spend figures for last 3 years:
2019: $57,500
2018: $55,000
2017: $50,000

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Start with Historical
Let’s assume you find the spend figures for last 3 years:
2019: $57,500
2018: $55,000
2017: $50,000
Now we need to calculate the weighted average. We calculated this by multiplying each year with
respective weights - high for most recent year, low for older years.
2019: $57,500 * 70% = $40,250
2018: $55,000 * 20% = $11,000
2017: $50,000 * 10% = $5,000

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Start with Historical
You conclude that the weighted average is$56,250
Let’s assume you find the spend figures for last 3 years:
2019: $57,500
2018: $55,000
2017: $50,000
Now we need to calculate the weighted average. We calculated this by multiplying each year with
respective weights - high for most recent year, low for older years.
2019: $57,500 * 70% = $40,250
2018: $55,000 * 20% = $11,000
2017: $50,000 * 10% = $5,000

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Next, Layer In More Factors
To get a more accurate estimate for our hydro budget we think about
including the following factors:
Delays between meter
reading and billing
received by the
employer
Upgrades to more
efficient appliances
Administration fees
Hydro rate
increase

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Doing the Math

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Doing the Math
3 year weighted average of hydro bill $56,250

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Doing the Math
3 year weighted average of hydro bill $56,250
Upgrading to energy efficient equipment, save 5% -$2,813

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Doing the Math
3 year weighted average of hydro bill $56,250
Upgrading to energy efficient equipment, save 5% -$2,813
Meter time delay, add 4% +$2,250

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Doing the Math
3 year weighted average of hydro bill $56,250
Upgrading to energy efficient equipment, save 5% -$2,813
Meter time delay, add 4% +$2,250
Hydro rate increase, assume 3% +$1,671

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Doing the Math
3 year weighted average of hydro bill $56,250
Upgrading to energy efficient equipment, save 5% -$2,813
Meter time delay, add 4% +$2,250
Hydro rate increase, assume 3% +$1,671
Management fee, assume 10%* +$5,736
*Multiplied based on the sum of all previous items

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Doing the Math
3 year weighted average of hydro bill $56,250
Upgrading to energy efficient equipment, save 5% -$2,813
Meter time delay, add 4% +$2,250
Hydro rate increase, assume 3% +$1,671
Management fee, assume 10%* +$5,736
Total 2020 Hydro Budget $63,094
*Multiplied based on the sum of all previous items

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Applying it to Dental
3 year weighted average of dental claims (claims history) $56,250
Adding a dental deductible, save 5% -$2,813
Time Delay Claims (IBNR), add 4% +$2,250
Dental fee guide increase (trend), assume 3% +$1,671
Insurer Admin fee (TLR), assume 10%*
Total Dental Premium
+$5,736
$63,094
*Multiplied based on the sum of all previous items

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“Hi John, I can save you 20% on your
benefits cost if you switch your plan to me!”

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"I shop the entire
market"
“Special arrangement with
insurance company”
"I get a special
deal"
"Part of a larger
group”
“I charge
lower fees”

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The Truth Behind These
Marketing “Lowball Prices”
Aggressive discounts offered by
insurance companies in order to
entice businesses
Annual savings in first year can
range from 10% to even 30%
Typically, the premiums quoted
are not enough to pay for the
anticipated claims. Renewals
sky rocket in subsequent years
Lowball prices are also made
possible by manipulating time
delay claims (IBNR factor)

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Remember, Premiums = Claims + Expenses
If the quoted premiums are equal to or less than your claims,
you are dealing with a Marketing “Lowball Price”

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Ask the right questions
1. What is the “Target Loss Ratio” for Extended Health Care (EHC) and Dental?
2. What are the “Incurred but not reported reserves” (IBNR) for this quote and how
are they calculated?
3. What are the “Trends” that will be applied to the EHC and Dental?
4. What is the Stop Loss or Pooling Level?
5. What is the Stop Loss or Pooling charges?
6. If Rate Guarantees are being offered ask if there are any conditions that must be
adhered to, for Example: changes in employee population, any restrictions, read fine
print.

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Read the fine print!

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A Real Case Study Example
A current Beneplan client recently received attractive pricing plan from
competing carriers for the same coverage.
Let’s evaluate their best course of action

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Client Background
Trade Association based in
Mississauga
20 full time
employees
Beneplan customer since 2015
$10,845 in refunds to date
Current Monthly Premium
$5, 444

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Which Offer Should They Take?
Beneplan
Current Carrier A Carrier B
Monthly Premium
Annual Premium
$5,444
$65,328
-
CA$4,529
CA$54,343
-17%
CA$4,931.12
CA$59,173
-9%
CA$5,423
CA$65,078
-0.4%
Beneplan
Renewal
% Change YOY
vs Current

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Which Offer Should They Take?
Beneplan
Current Carrier A Carrier B
Monthly Premium
Annual Premium
$5,444
$65,328
-
CA$4,529
CA$54,343
-17%
CA$4,931.12
CA$59,173
-9%
$5,423
$65,078
-0.4%
Beneplan
Renewal
% Change YOY
vs Current

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Which Offer Should They Take?
Beneplan
Current Carrier A Carrier B
Monthly Premium
Annual Premium
% Change YOY
vs Current
$5,444
$65,328
-
$4,529
$54,343
-17%
CA$4,931.12
CA$59,173
-9%
$5,423
$65,078
-0.4%
Beneplan
Renewal

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Which Offer Should They Take?
Beneplan
Current Carrier A Carrier B
Monthly Premium
Annual Premium
$5,444
$65,328
-
$4,529
$54,343
-17%
$4,931.12
$59,173
-9%
$5,423
$65,078
-0.4%
Beneplan
Renewal
% Change YOY
vs Current

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Buyer Beware
We must look at the renewal factors and see how they affect
premiums in Year 2 & Year 3

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

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Renewal Factor Breakdown
Renewal Factors
Target Loss Ratio
Incurred But Not Reported (IBNR)
Trend
Stop Loss or Pooling Level
Maximum Rate Increase
Guarantee (Year 1)
Rate Guarantees
Maximum Rate Increase
Guarantee (Year 2)
Stop Loss or Pooling Charge
Credibility
Single
Family
Health Dental
Beneplan
84.50% 84.50%
5.00%
of Claims
9.00% 5.00%
$3.00 n/a
n/a
n/a n/a
n/a n/a
$6.00 n/a
100.00% 100.00%
Health Dental
Carrier A
82.80% 82.80%
12.00% 8.81%
$2.86 n/a
n/a
n/a n/a
n/a n/a
$6.66 n/a
0.00% 0.00%
Health Dental
Carrier B
76.80% 76.80%
9.80% 10.09%
$2.08 n/a
n/a
$4.85 n/a
0.00% 0.00%
10.0% 10.0%
n/a n/a
n/a n/a n/a n/a n/a n/a
$10,000.00 $10,000.00 $10,000.00
5.00%
of Claims
6.00%
of Premiums
6.00%
of Premiums
6.50%
of Claims
6.50%
of Claims

64. Shopping The Market
64
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

65. Shopping The Market
65
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

66. Shopping The Market
66
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

67. Shopping The Market
67
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

68. Shopping The Market
68
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

69. Shopping The Market
69
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

70. Shopping The Market
70
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

71. Shopping The Market
71
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

72. Shopping The Market
72
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

73. Shopping The Market
73
Monthly Premium
Y1
Beneplan
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Carrier A Carrier B
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis

74. Shopping The Market
74
Monthly Premium
Y1
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Total Premiums Paid Over 3 Years
-0.4%% Change YOY 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis
Beneplan Carrier A Carrier B

75. Shopping The Market
75
Monthly Premium
Y1
$5,423
Current Y2
$5,529
Y3
$6,346
Y1
$4,529
Y2
$6,008
Y3
$6,949
Y1
$4,931
Y2
$5,255
Y3
$7,410$5,444
Total Premiums Paid Over 3 Years
-0.4%% Change YOY vs Current 3%
$206,801
13% -17% 33%
$209,824
16% -9% 7%
$211,155
41%
Detailed Renewal Analysis
Beneplan Carrier A Carrier B

76. Shopping The Market
76
Playing the Long Game
This costing exercise showed that the perceived savings in year 1
offered by the other carriers were quickly eaten up by the large
renewal increases in year 2 & year 3.
After seeing this, the client stayed with Beneplan.

77. Thank You
Vince Principato
President, Beneplan Inc.
vprincipato@beneplan.ca
Desk: 416-863-6718 x235
Cell: 416-832-4797
500-150 Ferrand Dr. Toronto ON M3C 3E5 | Beneplan.ca
Questions?