Assurant Health Deepening Customer Relationships and Generating Income The Insurance Direct Marketin

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Assurant HealthDeepening CustomerRelationships
andGenerating Income The Insurance Direct
Marketing Forum September 11, 2007
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Todays Discussion

• Introduction of Speaker Chuck Reinicke of
  Assurant Health
• Introduction of Assurant Health
• Alliance Experience
• Introduction of Short Term Medical
• Value Proposition to Buyer
• Value Proposition to Marketer
• Direct-Mail Case Study
• Additional Marketing Opportunities

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A Company You Can Count On
Assurant Health markets products underwritten by
Time Insurance Company.

• Expertise
• Roots trace back to 1892
• Providing individual medical insurance longer
  than any of its competitors
• More than one million customers nationwide
• Leader in Health Savings Accounts
• Strength
• A- (Excellent) AM Best rating
• Outstanding ability to meet claims-paying
  obligations
• One of the nations leading providers of Short
  Term Medical
• 30 Years
• 110 million annual premium
• Commitment
• Health insurance for individuals and families
  its all we do
• Leadership and innovation
• Source A.M. Best Ratings and Analysis, June 2005

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Alliance Partner Experience

• Two decades of experience working with
• Brokerages
• Insurance companies
• Import product divisions
• Independent marketing organizations
• Flexibility to meet your companys unique needs

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IntroductionShort Term Medical Health Insurance

• Target Markets Short Term Medical health
  insurance is designed to protect individuals and
  their families between permanent health coverage.
  Short Term Medical is ideal for those who are
• Recently graduated from college
• Recently lost a job
• Unable to afford traditional insurance
• Waiting for health insurance to begin at a new
  job
• Starting a new business and need health
  insurance
• Nearing age 65 without coverage from work.

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IntroductionShort Term Medical Health Insurance

• Available Markets
• Short Term Medical is sold in 45 states plus the
  District of Columbia
• (Not available in HI, MA, NJ, NY and VT)

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Market Assessment
Short Term Medical Market Size

• According to 2002 U.S. Census data, there are
  approximately 32.7 million uninsured people in
  the U.S. between 18-64 years of age.
• 18.9 million people have an insurance gap of less
  than one year
• 13.3 million have gaps of 6 months or less
• 5.6 million have coverage gaps of seven to 11
  months.
• Approximately 11.4 million can be insured and
  afford to pay for coverage

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Market AssessmentThe Leader In Short Term
Medical Health Insurance

• Large Market
• Assurant Health is the market leader in Short
  Term Medical.
• All carriers combined account for an estimated
  400 million in Short Term Medical premium, or
  10 of the total market.

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Who is Eligible for Short Term Medical?

• 4-5 of the U.S. population needs STM at any
  point in time
• 1/3 of buyers are new college graduates
• Must be healthy and at least 30 days of age and
  under age 65
• Dependent children through age 18 (age 24 if full
  time student) may be covered under parents plan.
• Foreign residents living in U.S. for at least 1
  year (with appropriate documentation).

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What is the value proposition to the buyer?

• Peace of min
• Access to affordable health care is number one
  consumer issue
• Financial protection in the event of an
  unexpected illness or injury
• Significantly lower cost than traditional health
  insurance or COBRA
• Ease in access of obtaining coverage
• Flexibility

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What is the value proposition to the buyer?

• Peace of mind
• No health exam, coverage begins one day after
  purchase, purchase completed in less than five
  minutes
• Lifetime Benefit Maximum 2-5 million (varies by
  state and plan type)
• Choice of doctors and hospitals
• Choice of plan coverage period from 30 to 365
  days (varies by state)
• Pays all covered expenses up to the policy
  maximum after deductible and co-insurance amounts
  have been satisfied
• Choice of deductibles - 250, 500, 1000, 2,500
  and 5,000 (varies by state)
• Choice of co-insurance - 100/0, 80/20 and 50/50
  up to 10,000 (varies by state)
• Payment can be made either one-time or monthly
  via credit card, ACH, or check
• Electronic or paper application submission and
  policy issue

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What is the value proposition to the Marketer?

• Peace of mind
• A high profile marketplace need access to
  affordable health insurance continues to be a
  high priority for most Americans
• A quality product with high consumer value for
  those who need temporary health insurance, you
  can provide an affordable, yet comprehensive
  program
• A proven success model has been successfully
  marketed - both broad based and on a select
  market basis
• Fast start up opportunities to existing customers
  means marketing campaigns may be implemented
  effectively with minimal cost and resources

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What is the value proposition to the Marketer?

• Peace of mind
• Provides additional ways to capture young adults
  31 of Short Term Medical buyers are young
  adults recently graduated from college and
  universities and/or between jobs
• Provides cross sell opportunities to existing
  customers - other insurance and financial
  products, membership, ect.
• A proven value added service to promote
  customer retention by providing an expanded
  product portfolio
• Provides a reasonable financial model for all
  parties - including the consumer

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Case Study Direct-Mail Marketing Campaign
targeting Parents of College Graduating Seniors
What Does Assurant Health Propose to Marketing
Short Term Medical?
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Congratulations to your recent graduate!Did
you know that for many, college graduation means
the end of health insurance coverage for your
dependent - - either on your policy or the
schools health program. As a result, your
graduate may need temporary health insurance to
bridge the gap in coverage from college to their
first job. If your graduate has already secured
employment, they may still need coverage if they
have a waiting period for employer-sponsored
coverage.With the high cost of health coverage
today, no one can afford to be without medical
protection. Its vital to have health insurance
to effectively meet the financial expense of an
unexpected injury or serious illness. If you
havent already done so, I urge you to provide
your recent graduate with temporary health
insurance if they are not currently covered under
an individual medical or employer-sponsored
plan.Assurant Health offers the nations
leading temporary health plan. Plan highlights
include-Highlights bulleted hereShort Term
Medical plan benefits, rates, and an
easy-to-complete application are enclosed for
your review. If you have any questions, call one
of our dedicated insurance representatives at
AGENCY toll-free at 800-800-1234. You may also
visit our web site at WWW.WEBSITE.COM to obtain
additional information, a quote or to apply
online.Remember that medical hardship is the
furthest thing from a recent graduates mind
today. But nobody is immune to emergencies.
Apply today to secure these rates!Sincerely,Ag
ent NameAgency NameEnclosureP.S. Dont be
one of the 40 of parents who mistakenly believe
that adult children living at home are still
covered under their health plans! Please check
your coverage!Disclaimer Add herePlan
benefits vary by state. See the insurance
contract for a complete listing of plan benefits,
limitations and exclusions. Insurance contracts
are issued and underwritten by Time Insurance
Company.
Cover Letter
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Simplified Rate Table Calculation Page
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Simplified Application Form
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Call to Action Page
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Short Term Medical Case Study Direct Mail
Campaign

• Marketer Direct-Mail Campaign Targeting the
  Parents of Assumed College Graduating Seniors
• Program launched in 06
• Units mailed 82,239
  (April, 2006 mailing)
• Policies sold 877
• Response rate 1.06 (sales
  through July 31, 2006)
• Average premium 254.63 per
  policy
• Premium obtained 223,311
• Annual royalty to Marketer _at_.25 55,827
• Facilitation Cost to Assurant Health
• Total printing, collation and insertion
  
• envelope and business reply costs
  20,807
• Postage Standard Class A _at_.217 17,845

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Short Term Medical Case Study Direct Mail
Campaign

• Marketer Direct-Mail Campaign Targeting the
  Parents of Assumed College Graduating Seniors
• Program launched in 07
• Units mailed 96,452
  (April, 2007 mailing)
• Policies sold 947
• Response rate .98 (sales
  through July 31, 2007)
• Average premium 350.41 per
  policy
• Premium obtained 331,845
• Annual royalty to Marketer _at_.25 82,961
• Facilitation Cost to Assurant Health
• Total printing collation and insertion
  
• envelope and business reply costs
  24,113
• Postage Standard Class A _at_.24 23,148

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Short Term Medical Case Study Direct Mail
Campaign

• Marketer Direct-Mail Campaign Targeting the
  Parents of Assumed College Graduating Seniors
• Program Growth Between 2006 2007
• Units mailed 14,213
  (April, annual mailing)
• Policies sold 70
• Response rate (.08) (sales
  through July 31)
• Average premium 95.78 per
  policy
• Premium obtained 108,534
• Annual royalty to Marketer _at_.25 27,134
• Facilitation Cost to Assurant Health
• Total printing collation and insertion
  
• envelope and business reply costs
• Postage Standard Class A _at_.24

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Short Term Medical Case Study Program Launch
08 Forecast

• Marketer Direct-Mail Campaign Targeting the
  Parents of Assumed College Graduating Seniors
• Program launched in 07
• Anticipated Units mailed
  125,000
• Anticipated Policies sold
  1,250
• Anticipated Response rate
  1
• Anticipated Average premium 375
  per policy
• Anticipated Premium obtained
  468,750
• Annnual royalty to Marketer _at_ 25 117,187
• Facilitation Cost to Assurant
• Total printing collation and insertion
  
• envelope and business reply costs
  31,250
• Postage Standard Class A _at_.25 31.250

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What Else Does Assurant Health Propose to Market
Short Term Medical?

• Installation of Short Term Medical hyperlinks
  within select locations of bank and financial
  institution web sites provides consumers access
  to
• Plan information
• Quoting
• Applying for coverage in real-time
• Policy issue in real-time with electronic policy
  option.
• E-Newsletter/E-Blast Marketing to enhance sales
  based on seasonality
• Installation of banner ad to enhance cross-sell
  opportunities
• Display take one display stands at branch
  locations

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Website Marketing

• Internet tools allow the consumer to
• Obtain plan information
• Obtain quotes
• Apply online
• Perform all of these activities in real time

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Targeted Email Marketing
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Take-One Stand and Brochure
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Statement Inserts
Statement Insert during college graduation season
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Assurant Health offers
Summary
Stability

• Over 110 years of keeping promises
• One of the nations leading providers
• Licensed to sell short term medical in 45
  states plus the District of Columbia
• Almost two decades of experience in
  partnering with national distribution
  entities
• Commission and production reporting provided
  electronically
• Web-quoting capability for your agents and
  customers to obtain quotes and even apply online

Leadership
Reach
Expertise
Simplicity
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Thank You