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Sample Case Studies
ABC adds value to our clients’ businesses with each engagement. Working with ABC, our clients are able to gain access to not only the best minds in the industry, but also access to industry best practices to ensure that benefit programs are optimized and aligned with overall corporate and employee objectives. Below is a sampling of some of ABC’s work with some of the most preminent companies in the world.

Innovative Use of Captive Reinsurance at Fortune 50 Telecommunications Company
American Benefits Consulting has assisted a major telecommunications carrier with the expansion of its Captive’s risk portfolio to include personal lines coverage via reinsurance. Their captive has been extremely innovative in offering its employees and retirees Voluntary Benefit programs to maximize the financial advantage by increasing the amount of unrelated third party premium.

Through their captive, they offer employees and retirees the opportunity to purchase their own personal auto and/or homeowners insurance from MetLife Auto & Home, Liberty Mutual or Travelers Insurance. Employees and retirees can purchase these coverages at a group discount from the normal retail rates charged by these three insurance companies and employees have the convenience of having their premiums deducted from their paychecks.

Divestiture and Benefits Optimization at International Manufacturing and Services Conglomerate
After a corporate divestiture which left over 150,000 employees worldwide, 40,000 of which were in the US, ABC was engaged to market the Life and Accident programs for the new organization. There were significant challenges associated with the project, including the fact that historical experience for the combined entities had not been separated by business unit under the legacy contract and there was a single, inadequate rate for active and retired employees which had caused the plan to run at a significant deficit.

ABC conducted an RFP and was able to achieve savings, a six-year rate guarantee, and meet all of the clients objectives with a new insurance carrier. Using a custom developed auditing tool, ABC was able to separate legacy premiums by business unit and separate claims by social security numbers to determine a reasonable claim cost for the new company. Armed with reliable data and a clearer picture of how the new, streamlined organization would fare from an actuarial perspective, ABC was able to create a scenario that gave several major carriers the confidence to get much more aggressive with their quotes. In addition, ABC worked closely with client benefit administrator and the new carrier to ensure an efficient, electronic enrollment, EOI processing and plan management solution.

Life & Disability Benchmarking and Rate Reduction at International Health & Beauty Aid Company
ABC was asked by an International Health & Beauty Aid company to provide a comprehensive review of the design, plan provisions, and funding of their current life and disability programs. ABC conducted a benchmark analysis and determined that the benefits offered were very competitive and extremely rich (above benchmark). Using a claim file from the carrier, we were able to remodel the claims and develop cost savings for increasing the service waiting periods and revising the benefit percentage to a number of lower cost options.

Group Life, Disability, STD & LTD Vendor Management at International Media & Entertainment Company
ABC was hired by a leading Media & Entertainment Company to work with their Procurement Department to release a formal RFP on their domestic Group Life Insurance Program. The RFP process resulted in the migration to a new carrier at an approximately 25% per year savings. After the rate guarantee expired, standard procurement policy required another RFP. A new carrier was selected out of the RFP process, leading to no increase to current rates despite loss ratios over 100%. In addition, the new carrier positively addressed rating deficiencies of the previous carrier and agreed to include a mechanism that provides rate changes only in the event of dramatic experience shifts. This provides the ability to achieve paid premium truly approximating paid and pending claims plus a very small administrative fee, plus taxes, with very low reserve requirements.

The Disability renewal that was presented required a 40% increase for LTD as well as an increase in STD fees. Through carrier negotiations we were able to show that the experience driving the renewal increase was attributable to a specific segment of the group. Additionally, we recommended plan design changes that would mitigate any further negative experience. The result was a renewal at the present rate for both the LTD and STD.

Personal Lines coverage through a Captive at International Minerals & Manufacturing Company
In 2004, ABC's client expanded its Captive insurance program to include personal lines coverage. Prior to the rollout of the revised program, they had offered a single Auto & Homeowner’s product to its employees from just one insurer. The offering was not actively marketed, yielding low participation and low perceived benefit from employees. With ABC’s assistance, the company rolled out a new program offering to active employees and retirees via its Captive that offered products from MetLife Auto & Home, Liberty Mutual, and Travelers. Today, the three insurers conduct joint marketing to potential participants via ABC resulting in increased employee participation while participants enjoy the convenience of automated payroll deduction.