the client

A variety of separately operated hotels and restaurants owned by one parent company based in Japan.

the challenge

To negotiate volume discounting based on overall Canadian operations, yet provide effective administration to allow each division to be priced according to plan use. Additional considerations in plan design were the inclusion of unionized staff with periodic collective bargaining and ongoing cost containment measures.

the solution

Underwriting: Overall program pricing and underwriting was transferred to more sophisticated underwriting with lower target margins. We were able to further streamline divisional pricing to more accurately reflect plan use.
Third Party Administration: The use of third party administration made it possible to further refine pricing to reflect varying plan use.
Collective Bargaining: More direct access to union negotiations and collective bargaining decisions within the client's industry assisted in plan design benefit decisions.

the results

The benefits program has been priced and funded to reflect the unique structure of the group. Third party administration has provided more efficient financial management to allow the client to effectively meet division and parent company objectives.