THE GLOBAL BENEFITS OF MULTINATIONAL POOLING

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1 THE GLOBAL BENEFITS OF MULTINATIONAL POOLING BELINDA HARRIS GLOBAL BENEFITS MANAGER ACCENTURE

2 AGENDA Accenture s Multinational Pooling Strategy Company Overview Benefits Governance & Challenges Multinational Pooling Advantages Getting Started, Business Approval, Implementation Operating Model, Management Our Journey & Results Learnings Copyright 2017 Accenture. All rights reserved. 2

3 Approximately 411,000 people serving clients in more than 120 countries ACCENTURE COMPANY OVERVIEW Provides broad range of services and solutions in strategy, consulting, digital, technology and operations Over US$32 billion in annual revenue Cover more than 40 industries and all business functions Partner with more than threequarters of the Fortune Global 500

4 OUR GLOBAL BENEFITS GOVERNANCE APPROACH Global = Headquarters Local = Subsidiaries Local Responsibilities Global Responsibilities Strategic Local and Global work together on Strategy and align to objectives Organizational Organizational As an Organization: Local and Global work both along side each other and together Reporting Locals report information to Global for consolidation and delivery to Leadership Compliance Locals are responsible for local compliance Copyright 2017 Accenture. All rights reserved. 4

5 GLOBAL BENEFITS GOVERNANCE Employee Benefits Challenges Lack of information on plan design and/or plan experience Increasing business pressures to contain program costs Simultaneous pressure to deliver more employee value Emerging market salary inflation and demand for added benefits Inefficient or outdated plan designs increasing benefits costs Unknown risks, compliance changes, regulatory requirements Need enablers to realize our global benefits governance strategy and address employee benefits challenges Copyright 2017 Accenture. All rights reserved. 5

7 ADVANTAGES Financial Global / Corporate Cost savings, Potential dividends Reporting, Governance Overall efficiencies / Claims management Non-Financial Central point of contact Global data reporting Consistent information Improved management Local perspectives Access to scale Country / Local Local cost savings Possible international dividends Other opportunities: The power of data reporting Better terms and conditions Global principles Improved service Greater influence Free cover limits Copyright 2017 Accenture. All rights reserved. 7

8 GETTING STARTED INITIAL INVESTMENT: NETWORK SEARCH Conduct inventory of insured plans and business entities worldwide. Work with consultant to share business entity names with pooling networks to discover natural network alignments (e.g. existing policies placed in networks). Determine geographical matches with networks, appropriate number of networks. Lower cost project conducted from an annual ad-hoc project budget. Easy approval, with up side benefits only, no risk beyond project investment. Copyright 2017 Accenture. All rights reserved. 8

9 MAKING A DECISION BUSINESS APPROVAL: CAPITALIZING ON CURRENT STATE Decision based on existing global alignment with a few networks. Potential business savings estimated off existing network aligned premium volume. Future business savings estimated off potential policy additions over time. Easy approval, with up side benefits only; however, no global mandate. Copyright 2017 Accenture. All rights reserved. 9

10 MOVING TO EXECUTE Negotiate terms, service agreements, rules of engagement with networks IMPLEMENT: BALANCING CULTURE Establish principles, rules of engagement, and integrate into local process Determine target countries/plans based on volume, experience, etc. No global mandate to move policies: only require network partners are invited to opportunities Copyright 2017 Accenture. All rights reserved. 10

12 OUR BENEFITS RENEWAL PROCESS Global = Headquarters Local = Subsidiaries Step 1 Global s local procurement and country teams about 3 to 4 months prior to the benefits contract renewal date. Step 2 Local request quotes from market, including all pooling partners (where available). Remarketing should be completed at least every 2 years (for Life / Accident / Disability) and 3 to 4 years (Health Care). Step 3 Local submit remarketing summary and recommendation prior to final vendor selection to Global. Step 4 Global reviews proposals, may ask pooling partners to refine proposals, and respond to Local. Step 5 Local finalize provider selection and inform Global. Global will determine whether to pool any contract placed with pool partner. 12

13 ACTIVE MANAGEMENT Partner with Local & Broker for benefits renewals Share renewal dates and hold periodic progress calls with pooling partners Review semi-annual & annual reporting for opportunities Conduct semi-annual or annual training for Local & Broker Report annual results to stakeholders Copyright 2016 Accenture All rights reserved. 13

14 ACCENTURE S MULTINATIONAL POOLING OUR JOURNEY 2009 Network Search Started Network Relationships 2016 Established Global Non- Disclosure Agreements 2017 Pooling Experience Review Validated Strategy Brought in New Team Member 2011 Pooling Experience Review Validated Strategy Brought in New Team Member 2014 Refresh Network Search Validated Strategy Amended Service Agreements Continue Program Development 2012 Revised Financial Mechanisms 2013 Pooling Experience Review Developed Target List Actively Manage Copyright 2017 Accenture. All rights reserved. 14

15 ACCENTURE S MULTINATIONAL POOLING EXPERIENCE WITH INSUROPE Total Insurope dividends from 2009 to 2016 reporting years total approximately US$2.26M, distributed back locally to offset future premiums 2009 Pool Started 4 Countries 12K Lives $3M Pool Premium Limited Carry Forward with 3 year Stop Loss 2017 Current State 10 Countries 37K Lives $6.4M Pool Premium Limited Carried Forward with 2 Year Stop Loss Future Continue pool expansion Insurope Network Members asked to quote alongside other pooling partners Copyright 2017 Accenture. All rights reserved. 15

LEARNINGS Know your culture, business relationships, and local decision drivers Establish rules of engagement and develop a growth road map Create strong relationships and partnerships with

16 LEARNINGS Know your culture, business relationships, and local decision drivers Establish rules of engagement and develop a growth road map Create strong relationships and partnerships with stakeholders and providers Provide information, education, and transparency around strategy Do not accept complacency; review and reevaluate regularly; explore different approaches Copyright 2017 Accenture. All rights reserved. 16

17 QUESTIONS?

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