Successful Strategic Alliances

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Successful Strategic Alliances

• Inter-Company Marketing Group
• 24th Annual Meeting Conference
• February 6, 2008

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Todays Objectives

• Learn the motivations behind strategic alliances
• Identify the characteristics of successful
  strategic alliances
• Examples of successful (and unsuccessful)
  strategic alliances
• Prescriptions for keeping alliances healthy for
  the long term

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Todays Panel

• Jim Kenneally, Chief Marketing Sales Officer,
  HPA
• Tom DeNoma, Associate VP, Nationwide Health Plans
• Brian Robertson, EVP, Fringe Benefit Group
• Michael Shevlin, SVP, Munich Re America Healthcare

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• Strategic Alliances
• Jim Kenneally
• Chief Marketing Officer
• Health Plan Administrators

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To Be or Not To Be (the expert)

• Motivators Behind Strategic Alliance
• Geography
• Product
• Process
• Management- Financial and Administrative
• Distribution
• Mutual Admiration Society

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Characteristics of Success

• Know your Strengths and Weaknesses
• Proper Expectations
• Financial
• Sales
• Plan for the Future
• Two-Way Street
• Operational
• Exit Strategy

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IHC Strategic Success

• Aegon Companies
• Fidelity Security
• BCBS of AZ
• Maxin Insurance Group

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Long-Term Success

• Know Who You Are
• Know Who You Want To Be
• Know Who Your Partner Is
• Try To Know Who Your Partner Wants To Be
• Have Clear Expectations on Both Sides for
  Measurements of Success

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• Nationwide Specialty Health (NSH)Why Strategic
  Alliances?
• Tom DeNoma
• Associate Vice President
• Nationwide Health Plans

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Characteristics of a Successful Strategic Alliance

• Alignment of Interest
• Strategic
• Financial
• Both Parties bring something to the table
• Trust your partner to do the right thing or work
  to fix it
• Underwriting
• Reputational
• Break bread before you make bread

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NSH Four Market Segments

• Sports Leisure
• KK
• Education
• CHP
• GM Southwest
• Travel
• Meridan
• Employer
• Medical Stop Loss RMTS
• Group ADD StarLine
• Limited Medical Fringe
• Generic Rx - Medco

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What keeps an alliance healthy for the long term?

• Both parties need to be involved
• Look for ways to help each other grow
• Trust / Relationship
• Both parties need to win
• Allow partners to do what they do best
• Strategic Fit

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• Strategic Alliances
• Brian Robertson
• Executive Vice President
• Fringe Benefit Group

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Fringe Benefits Group

• Marketing organization and TPA
• Proprietary products
• History of Strategic Alliances
• Successful alliances with
• Nationwide
• Standard Security Life (IHC)
• John Hancock
• Transamerica
• United Healthcare

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Strategic Alliances for Program Managers

• Find the right carrier
• Add unique value
• Create clear boundaries
• Communicate, Communicate, Communicate

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• Strategic Alliances
• Mike Shevlin
• SVP, Business Development
• Munich Re America HealthCare

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Motivations Behind Strategic Alliances

• Growth without increasing resources
• Leap-frogging several steps in the development
  process
• Accessing Best in Class expert resources
• Adding credibility through the endorsement affect
• Leveraging skills and assets

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Characteristics of Successful Strategic Alliances

• Well-defined Goals will dictate your needs
• Objectives of an alliance should benefit all
  parties
• Joint planning and decision making involve all
  parties
• Trust, openness, and information sharing
• Staff / Key member continuity

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Examples of Successful Strategic Alliances

• Small Group Medical
• Risk Taker, Program Administator, Fronting
  Carrier, Actuary
• 2. Individual Medical
• Risk Taker, Program Administrator, Fronting
  Carriers, Actuary
• 3. Mini Medical
• Risk Taker, Program Administrator, Fronting
  Carrier, Actuary

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Examples of UNsuccessful Strategic Alliances
Carnivorus Vulgarus and Velocitus Delictibus
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What Keeps an Alliance Healthy for the Long Term?

• Communication
• Communication
• COMMUNICATION!
• Good Results
• Joint efforts / projects (not just sharing
  prospect lists!)
• Flexibility / Adaptability to Changes

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• Thank you very much
• for your attention!