Transcript Folie 1

Global HR Executive Workshop - Geneva 15.9.2009 | SEITE 1
International Medical
Insurance Tender on the
basis of a concrete example:
Julius Bär Singapore Renewal on
January 1, 2009
Swiss - Global HR Executive Workshop
Martin Bühler, Managing Partner,
expatpartners ag
Geneva, 15 September 2009
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Julius Baer’s Story Started in 1890
1890
Julius Baer
Group Founded
1890
Julius Baer, 1857-1922
2
2007
First Foreign
Subsidiary Opened
1940
IPO on
SWX
1980
Share
Unification
2005
Creating the largest pure
wealth manager
SBC
Acquisition
2005
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 expatpartners ag is a firm of independent insurance consultants.
 Public limited company.
 Domiciled in Zurich, Switzerland.
 We deal exclusively with international employee benefits. Main focus on
insurance solutions for mobile employees.
 We support companies and their mobile employees – Expatriates, Third
Country Nationals, Assignees, Local Foreign Employees, Key Local
Nationals, Trainees and Frequent Travelers – in finding the best possible
insurance solutions.
 Consulting and brokerage services (depending on the client’s request).
 Licensed by the Swiss Government to provide insurance brokerage and
consulting services.
 www.expatpartners.ch
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Excecutive Summary
Benefits review
 As part of the employee benefits insurance renewal exercise, Compensation
& Benefits Department of Julius Bär (C&B) reviewed the current health care
policy and benchmarked it against other providers.
Role of expatpartners ag
 Due to its in-depth knowledge about the international medical insurance
market, expatpartners acted in an advisory capacity.
Actions taken
 C&B visited four insurance companies during a field trip and decided to put
JB’s international medical plan out to tender for the local employee
population in Singapore. Visited the following local and international medical
insurance companies:
 AIG, AXA Insurance, DKV and Vanbreda. Current provider: CIGNA.
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Tender procedure – Actions to take
 Determination of the tender criteria (benefits, services, pricing model).
 Preparation of the tender documents.
 Decision which insurance companies to invite.
 Tender/Bidding, i.e. dispatch of the documents to the participating insurers;
questions to answer; coordination with the participating insurers; price
negotiations, etc.
 Analysis of the submitted offers (price / service / benefit comparison).
 Creation of a summary document (pricing, service factors, differentiating
factors).
 Presentation of the analysis / results.
 If required: 2nd round of negotiations / organization of a “beauty parade”
(invitation of the selected insurers in order to present their offers).
 Selection / decision.
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Reasons why to opt for an international medical plan for local
foreign employees in Singapore
 International cover enables the local overseas employees (mainly European
citizens) to receive treatment in their home countries in case of a more
severe incident.
 To provide continuous, comprehensive health care benefits for those whose
employment takes them to another country during their international career
with Julius Baer.
 Julius Baer have the guarantee that all local foreign hires have a
comprehensive coverage (no lack of cover).
 No disparities - every eligible employee has the same level of coverage
which will avoid conflicts.
 Cost advantages for the Bank (economies of scale), but also for the
employees (instead of having individual insurance solutions).
 Easy and effective administration for the employees (focus on the job and not
on administrative issues).
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Julius Bär Singapore tender requirements
 A comprehensive product offer.
 Experience and reputation in the international medical insurance market.
 Local expertise in Asia/Pacific including a large provider network in
Singapore.
 Regional claims centre and point of contact (same time zone).
 Easy and effective administration (claims handling) for the employees
(fundamental condition).
 Cost-effectiveness including a certain premium stability for the future.
 Swiss continuation option (if possible).
 Implementation support.
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Service offer of the leading health insurance providers –
Employee’s perspective (criteria to be fulfilled)
 Private medical insurance, i.e. free choice of hospitals and doctors, private
ward.
 No medical underwriting: no exclusions, no waiting periods, no premium loadings.
 Easy and flexible claims reimbursement process.
 Multilingual 24 hour helpline, e-mail access to customer services team.
 Member website incl. access to global provider network, country information,
claims information (reimbursement status), etc.
 Large provider network mainly in Singapore, but also in the rest of the world
(direct payment agreements).
 Medical Assistance: evacuation/repatriation, country guides, alarm centers, etc.
 For employees leaving the group plan: continuation option (no medical
underwriting) with an individual product (if possible “in-house”).
 For employees returning to Switzerland: continuation option.
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Service offer of the leading health insurance providers –
Employer’s perspective (criteria to be fulfilled)
 Medical insurer with proven experience in Singapore.
 Dedicated account manager.
 Coverage for all nationalities (no restrictions).
 Comprehensive cover and flexible benefit design.
 Professional reporting capabilities, e.g. claims report, membership lists,
etc.
 Flexibility on invoicing processes (billing to subgroups possible).
 Alliances with domestic insurance companies and/or local provider
networks.
 Continuation option for employee’s leaving the Bank or returning to their
home country.
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Leading providers in this very dynamic market
(providers with
a substantial book of business with multinational companies and/or international organisations)
 CIGNA International: Probably the largest provider for corporate expat medical
insurance solutions. Leading provider in Switzerland. Comprehensive service offer.
 Allianz Worldwide Care: Grew considerably over the last years (very dynamic). Has
got a large book of business with corporations (mainly in Europe).
 BUPA/IHI: As largest local medical insurer (subsidiaries in many countries) they
also have a substantial portfolio of international corporate clients. Not very active in
CH.
 DKV Globality: Relatively new in the expat medical insurance market, though
already a large book of business mainly with German, Spanish and Benelux
corporations. Benefits from the international network of its parent company “Munich
Re”.
 Vanbreda International: TPA provider. Largest provider in the international
organization market and growing in the corporation sector.
 GMC and Mobility Benefits: French TPAs. Large French portfolio and also a
considerable number of group clients in the French part of CH.
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Differentiating Factors (besides the costs)
 Proven experience with clients of a similar size and in a similar industry
 Service quality for both employer and employee (e.g. language capabilities)
 Claims handling: Original invoices requested or claims by mail, fax or email
accepted?
 Claims handling: Any hidden costs for the employees?
 Claims centers in different regions?
 Treatment: Pre-authorisation necessary?
 Premium payment frequency? Surcharges?
 Continuation options (international and Swiss)
 Size of the provider networks / number of direct payment agreements (mainly
in the countries/cities your expats are located).
 Compliance
 Flexibility of the provider (product range? Cover for local employees? etc.)
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Short list of health insurers invited to tender
 CIGNA International:
Key advantages: Well known insurer in the expat community in Singapore,
cooperation with a local hospital network in Singapore, very good service
offer; well represented in Switzerland (e.g. continuation, etc.).
 DKV Globality:
Key advantages: Local expertise in Singapore (and Asia) thanks to a regional
claims center (in Bangkok and China); very comprehensive benefits; cost
effective solution with a certain premium stability (premium guarantee for the
first 2 years).
 Vanbreda International:
Key advantages: Local expertise thanks to a local representative and a local
claims center in Malaysia. Comprehensive plans and a very good reputation
with regard to service quality.
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Results of the tender
The winner of this tender was DKV/Globality. Reasons for this decision:
 Local expertise with regional claims centers.
 Large provider network in Singapore.
 Very comprehensive benefits.
 Low premium costs / cost advantages for the bank and the employees.
 Premium guarantee for 2 years.
 No set up cost.
 DKV GLOBALITY provides global health insurance cover combined with local
assistance services and local knowledge.
Important remark:
The outcome of this exercise would not necessarily be the same for other clients, as
provider offers can vary considerably from case to case. Tender processes undertaken by
expatpartners in the same year (particularly with regard to premium costs) resulted in
different recommendations.
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Julius Bär (C&B)
Christian Frener
+41 58 888 46 67
[email protected]
expatpartners ag
Martin Bühler
+41 44 280 68 68
[email protected]