Life Insurance

• Appropriateness of the then-current carrier

• Complete understanding and explanation of all financial aspects of the current plans and arrangements, including survivor income and premium waiver reserves

• Efficacy of the “cost-plus” retiree life arrangement

• Complete understanding of the trust arrangement, including analysis of IRS Private Letter Rulings affecting the arrangement

• Market checks for both carrier capabilities and pricing

ABC worked with our client to:

• Streamline the benefit programs

• Select a new insurer that could offer greatly improved service and substantially better financial arrangements

• Modernize insurer-employee interaction using technology platforms that integrated with the client’s existing in-house and benefit administration provider portals

Our assigned consulting team used:

• Deep knowledge of the group life insurance market

• Significant knowledge of complex products, plan designs, and financial arrangements

• Project management capabilities, to keep both ABC and the client on track to make timely decisions

• Financial acumen and communication skills, to understand and explain the complex arrangements to bidding carriers and the client, as necessary

• Carrier/vendor management skills, making an ally of the then-incumbent, despite potentially losing the business, resulting in all necessary information being received in a very transparent manner

We recommended our client make the following modifications:

• Change carriers

• Maintain legacy claims with the incumbent — which hadn’t been done in previous transitions creating significant complexity

• Address certain plan aspects that weren’t 100% aligned with tax guidance (e.g., imputed income)

• Outsource certain administrative functions to the insurer, as opposed to the benefits administrator (e.g., evidence of insurability, as this function had not been appropriately managed in the past)