Success Story – “Medical Insurance Policy”

Success Story – “Medical Insurance Policy”

Company Description
Commercial Fleet Management Company

Company Situation and Problem

  • Client had accessed the same local medical broker and medical Insurance company network for several years
  • Insurance committee structure requiring internal consensus building with CFO and HR Director
  • Broker and Insurance company provided good service and coverage – Client was “Happy and Satisfied”
  • Health Care Insurance premiums had risen approximately 5% per year with broker compensation increasing
  • Complicated combination of HRA and HAS contributions and funding
  • No creative plan designs brought forth by the holding broker “status quo”

Paladin Actions & Recommendations

  • Paladin’s Strategic Insurance Partner conducted numerous internal interviews with the CFO and HR to determine cost structure, plan design, servicing requirements and regulatory pressure required to run the medical program
  • Assembled technical data such as: Summary Plan Descriptions, renewal letters, actual loss data, premium payments, historical insurance costs and completed contractual/policy wording reviews
  • Information was distilled into data points that Paladin’s Strategic Partner was able to use as benchmarking criteria and allowed comparison of the client’s insurance portfolio characteristics to national peers with The CMR Database®
  • A Request for Proposal (RFP) was created and sent to qualified broker specialists identified via the database. Paladin mediated the entire bid process, secured competitive proposals and developed a Final Report offering new options and plan designs

Client Results

  • New broker and specialist carrier were identified beyond the client’s localized territory expanded from “shopping locally” to sourcing nationally
  • A new customized insurance product was presented and accepted by the client
  • Premiums were reduced by 15% with a new plan design that will offer a refunding option based on favorable losses
  • A superior brokerage servicing platform was presented to HR and offered advanced systems and expanded internal HR assistance to make their job less burdensome

Better Insurance Policy with a Better Carrier with Higher Service Levels from the New Broker for 15% Lower Premiums