Get Started

Our 3 steps to understanding and selecting the right benefits for you

I

Watch the Video

Why Group Benefits?

2. Find the right approach

3. Get the Quote

Group Programs

Our most popular plans with premium coverage and stable rates

Pooled Programs

More Programs
5

Essentials

5

Lifestyle

5

Franchise Program

9

Specialty Programs

5

Experienced Based Programs

5

Group RRSP

Individual Solutions

Individual Insurance for your and your family

9

Individual Insurance Solutions

5

Individual Insurance Planner

5

Simplified Planner

9

Contact us

9

Our Story

9

FAQ and Forms

Acquisition Pricing Hurts Clients – Why and How?

Tools

Have you ever started a group benefits plan or changed insurers for a lower price? Only to be told a year later that due to your high claims your rates have increased.

The reality is that almost always the initial rates you were quoted were artificially low. Creating an unrealistic expectation of what the level of benefits should cost.

Effect of acquisition pricing on experience-based plans

When you sign up for cellular or cable services, they let you know your rates are initially discounted as an incentive. You know up-front your monthly payments will increase at some point in the future. You knowingly agree to this and sign up. Acquisition pricing hurts clients since it creates unrealistic exceptions, unlike incentive programs.

In group benefits, this is the problem: the “acquisition pricing” discount is undisclosed. Creating an unrealistic expectation of what your experience-based plan should actually cost. This is something you would not put up with for any other service. Most businesses will budget to the maximum they are comfortable with. Although this undisclosed discount can create problems for years to come.

Example (simplified, but accurate)

Let’s say your annual premium should be $20,000. However, the quote you are presented shows a first-year annual premium of $16,000 (undisclosed acquisition pricing). Let’s assume the insurer has budgeted that 75% of the non-discounted premiums of $20,000 will be paid out in claims. This equals $16,000 in expected claims. Just because you are paying less premium does not mean your staff will claim less. If manual (full price) rates should have been $20,000, there was a reason. At renewal, the undisclosed acquisition pricing discount will be removed, inflation trend added, IBNR (incurred but not reported) reserves deducted from the premiums available to pay claims, plus your claims are factored in. Based on standard industry calculations for experience-based plans, if your group claimed the $16,000 as expected, your rates will likely increase. This can be between 35-56% depending on the size of your business.

How do you deal with a large increase?

Simply put, you need better advice from an advisor. What we normally get is a spreadsheeter.

A Spreadsheeter

A spreadsheeter will usually say that our claims are too high. You need to shop around the market. They may even suggest changing your plan design. This is so your staff can “abuse the plan”. What they don’t usually tell you, is the underlying cause of the large renewal is not that the claims were too high but that the rates were too low. This results in under-funding, creating an unrealistic expectation of what the level of benefits should cost.

So what is a better approach?

An Advisor

An advisor will take the time to ask questions. Finding out what your objective in having a plan. Providing suggestions on how to stabilize rates, making sure your plan is competitive in your industry and much more. They will explain there are no magic fixes! If you want a plan with quality coverage and rate stability going forward, you may need to hit the reset. Start fresh with a properly priced plan within a budget you are comfortable with.

Changing insurers may or may not be part of the solution. Our advisors will help ensure that you have enough information to make an informed decision.

About us

Clear Benefits is a group benefits provider, specializing in pooled benefits programs. We develop, distribute, manage, and service pooled group benefits programs. We work with and support selected advisors.

Each of our pooled group benefit programs features 5 options meeting the needs of almost any small to medium-sized businesses with 3-50+ staff looking for affordable, traditional-style or contemporary coverage.

Contact us today for more information.

Follow Us On Social Media!

Looking at Benefit Plans for your business?

Health and Dental Premium Relief Extended for June

Health and Dental Premium Relief Extended for June

The health and dental premium reduction we provided to plan sponsors for April and May gave relief in real-time. In implementing this, it reflected the anticipated decrease in plan member health and dental claims due to pandemic closure of service providers. We...
Support For Small Businesses

COVID 19: Support For Small Businesses In BC

Small Business BC Support For the latest information on small business supports, resources and advisory services during COVID-19, please visit Small Business BC. Advisors are ready to help by phone at 1-800-667-2272, email and daily digital meetups. See how COVID-19...
Prescription Drug Cost

Prescription Drug Costs Breakdown

Understanding the total cost of a prescription drug claims means learning the 3 main components: 1) Ingredient Cost Actual cost the pharmacy pays the drug company or wholesaler to buy the drug. 2) Pharmacy Markup Percentage charged to cover the expenses involved in...
Why we ask for detailed quote information

Why Ask For Detailed Quote Information?

Why we need detailed quote information from your current plan? Detailed Quote Information tells us a story, enabling us to create the right solution Getting involved in a Group Benefits program is different than purchasing a commodity. Most consumers are...
long term disability

Non Evidence Maximums for Long Term Disability plans

ClearBenefits.ca is pleased to announce new Non-Evidence Maximums (NEM’s) for Long Term Disability in our Pooled Programs. The following enhanced LTD Non Evidence Maximum table applies to new business in both our Essentials and Lifestyle programs:                    ...

Medical Cannabis Coverage

Groups with over 100 lives can request to add medical cannabis coverage to their Extended Health coverage. Medical Cannabis Coverage In October of 2018, recreational marijuana will be legalized in Canada. The legalization of recreational marijuana has sparked a...

Experience-Rated Program: Finding Facts

Since the launch of our Experience-Rated Program, we get asked to provide both Pooled and Experience-Rated quotes. We believe the 1st priority is to understand the client need and what outcome they are trying to achieve. Fact-Finding - A Better way to do...

ClearBenefits.ca Pooled Programs – YTD Performance

We just completed our monthly review and thought I would share an update on the YTD performance of the pool: Fiscal year-end: Nov 30 Renewal rate implementation: June 1 As of August 31, 2018 we are 9 months into our fiscal year Claims are below target for...

Looking for a Company Plan?

Receive a personal call from an advisor right now!

Great! An advisor will reach out to you now. Please check your inbox