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

Pricing was transferred to more sophisticated underwriting. The use of third party administration (TPA) made it possible to separate company billings with invoicing based on the unique factors of each participating company.
Our direct access to union negotiations and collective bargaining decisions within the client’s industry allowed us to assist in plan design and pricing decisions. Insurance company negotiations allowed the 6 participating companies to be priced on the combined insured volumes. 

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 divisional as well as parent company objectives.