Retailing Health Insurance

1. Retailing Health Insurance Lessons From The Financial Services Vertical

2. Consumer Encounter assists healthcare and financial services brands to design a unique Customer Experience that enhances high margin sales through effective leverage of distribution channels, technology, marketing programs, promotional programs, branding and social media. The team has over 28 years of experience helping service providers enhance their marketing and sales efforts across 12 countries. Confidential Information. May not be used without written approval from Consumer Encounter

3. Learning From Banking During the last decade financial institutions faced a tectonic shift in their business due to the following: • Technology made service and information available anytime/anywhere. • Technology provided transparent pricing through data aggregators like Quicken Loans. • Regulatory changes made it possible for banks to offer additional financial products such as brokerage and insurance. • Technology enabled national providers to easily compete with local providers. • Technology provided customers with more data to make an informed purchase decision. Confidential Information. May not be used without written approval from Consumer Encounter

4. Learning From Banking Technology shifted the dynamic between banks and their customers. Armed with better information, more choices and transparent pricing customers became the dominant player in the bank/consumer relationship. Financial service organizations needed to rapidly transform themselves into retailers of products and services through product customization, competitive pricing, new distribution channel development, enhanced marketing, sales and communications. Confidential Information. May not be used without written approval from Consumer Encounter g

5. Learning From Banking Today, health insurance providers face the same dynamics that banks faced during the past decade in terms of technology, distribution, product, pricing and marketing. Based on the learning derived from assisting major money center banks across 12 countries to become effective retailers of financial services; this document presents a roadmap for health insurers to succeed in this new environment. Confidential Information. May not be used without written approval from Consumer Encounter Consulting

6. A New Customer Base • 12 million new customers/11 million small businesses will flood the insurance market during 2014. • Consumers will be less educated, more racially diverse and more likely to cycle on/off government support. • 60% will have full time employment and have household incomes below the 200% FPL of $46,100 for a family of four. • 20% speak another language. Source: PwC Health Research Institute Confidential Information. May not be used without written approval from Consumer Encounter

7. A Hard To Reach Customer • 31% have either a computer but no internet or do not have a computer in homes at HHI of $55K. • 54% have either a computer with no internet or do not have a computer in homes where Household Income (HHI) is < $25,000. • 40% of Black and Hispanic house holds have either a computer (no internet) or no computer. Confidential Information. May not be used without written approval from Consumer Encounter

8. A Hard To Reach Customer • Smartphone penetration is low for homes with HHI < $35K. Average penetration for ages 18 – 44 is only 61%. Confidential Information. May not be used without written approval from Consumer Encounter

9. The Focus Now • The 2014 deadline have state governments focused on the technology platform. Early health exchange entrants exhibit a large gap between product/platform and desired customer experience. Colorado Health Exchange Screen Shots Confidential Information. May not be used without written approval from Consumer Encounter

10. Who Guides The Consumer? • The plan is for states to recruit an “army” of so-called Navigators. • It is assumed that Navigators will be non-profit community groups, chambers of commerce and trade associations. • Traditional brokers may not be motivated to sell through exchange as they are prohibited from receiving a commission from the exchange. Confidential Information. May not be used without written approval from Consumer Encounter

11. The Big Questions • What do Navigators know about sales, and more importantly, selling insurance? • How will states drive awareness/existence of exchanges? What do states know about marketing? • How do consumers educate themselves about the choices, cost/benefit, regulatory and other key information? • How will the Navigator channel compare/differentiate the various brands/products? Who is going to train them to sell? • How do exchanges/insurers reach this customer base? • How do insurers create a long term relationship with these customers? Confidential Information. May not be used without written approval from Consumer Encounter

12. The Big Solution • States will quickly become overwhelmed by scope of building the exchange. • Insurers will have to become the defacto marketing arm for State Health Exchanges by providing a roadmap and tool kit to: • Differentiate your products from others. • Generate awareness of the existence of health exchanges and governmental requirements for insurance. • Educate customers about the appropriate insurance choices for their specific lifestyle, life cycle and financial situation. • Recruit and train navigators to assist target consumers to make the correct choice and provide a seamless sign up process. Confidential Information. May not be used without written approval from Consumer Encounter

13. The Exchange Marketing Road Map • The Exchange Marketing Road Map is a multi-year activation plan to recruit, engage, convert and manage consumers and small businesses appropriate for Health Exchanges. Confidential Information. May not be used without written approval from Consumer Encounter Consulting

14. The Exchange Marketing Tool Kit • The Exchange Marketing Road Map includes a marketing tool box customized by customer type and communications type. These tools will be fundamentally different from traditional health insurance marketing programs due lack of internet/computer availability, trust, language, educational level of this target Market. • Awareness • Recruitment • Education • Selection • Purchase • Relationship Management Confidential Information. May not be used without written approval from Consumer Encounter Consulting

15. Recommended Marketing Tool Kit • The goal of the Marketing Tool Kit is to power the Exchange Marketing Road Map by leveraging available communications channels and providing appropriate content at each stage in the relationship building process. Confidential Information. May not be used without written approval from Consumer Encounter Consulting

16. Awareness Confidential Information. May not be used without written approval from Consumer Encounter

17. Education Confidential Information. May not be used without written approval from Consumer Encounter Consulting

18. Selection Confidential Information. May not be used without written approval from Consumer Encounter

19. Relationship Management Confidential Information. May not be used without written approval from Consumer Encounter

20. The Roadmap For Navigators Confidential Information. May not be used without written approval from Consumer Encounter

21. For Additional Information For additional information about creating a RoadMap for your brand please contact: Andrew Atkin Consumer Encounter aatkin@Consumer Encounter.com Confidential Information. May not be used without written approval from Consumer Encounter