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Published by amartinez, 2017-12-15 10:22:19

2018 HAA plan

2018 HAA plan

39500 High Pointe Boulevard,
Suite 400
Novi, MI 48375
(877) 591-0300

2018

Strategic
Planning

www.haaweb.net

Integrity.
Continuity.
Innovation.

TABLE 04 GEORGE B FORD AGENCY
OF 12 UNITED STATES INDEMNITY

CONTENTS & CASUALITY COMPANY
14 FDI Risk Managers
18 Health Alliance Administrators
22 Financial Designs
24 CompOne Administrators
26 ManageAbility
28 ManageAbility IME
32 Startech Software

34 Infomation Technology
38 Rizikon
42 Marketing
44 Finance, Administration & Human Resourses

04 George B. Ford Agency Inc.

The FDI Group
of companies
impact over

4K lives
per day

As we move into 2018, our focus continues
to be the consistent implementation of the
best insurance solutions for our clients’
changing market.
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06 George B. Ford Agency Inc.

2018 P&C Insurance
Outlook

Being agile will be the new normal in
2018 as insurance companies face a
marketplace that is changing more
drastically than perhaps ever before.

THE INCREASED CONNECTIVITY that have continued to pressure
among household and workplace investment income, a condition that
devices, the development of will likely persist for years to come.
autonomous vehicles, and the
rising threat of cyberattacks are Even with low interest rate returns,
transforming the way people live and Insurance Companies continue to
the risks they need to mitigate with post strong financials along with
insurance products. average capital and surplus at its
highest level in 10 years. However,
Insurance companies/agencies excess capacity is undermining
for that matter will need to adapt profitability, as seen by falling net
their business models to address income and return on average
these changes, which can be viewed equity (ROAE). With high capacity,
as both threats and opportunities the insurance industry expects to
for growth. The overall uncertainty see downward pressure on rates,
in today’s economy, will impact the especially in commercial lines, as
insurer growth prospects in 2018. insurers compete with new and
Insurance companies in general are existing players for market share in
still faced with low interest rates an overcapitalized environment.

George B. Ford Agency Inc.

GBF HAS BEEN consistent in bringing that gives us another solid company GBF in 2018
single-digit percentage growth on that has the capability to write in all
a year-by-year basis. In order to states. We’ll have a continued focus GBF has been consistent
increase premium volume organically, on feeding our key profit sharing in bringing single-digit
hiring new Sales Producers will be a carriers to maximize both our growth percentage growth on
main priority. goals and profitability in order to hit a year-by-year basis.
Contingent Bonuses at the end of In order to increase
Currently, Commercial Lines (CL) 2018. premium volume
continues to be a very competitive organically, hiring new
marketplace due in large part With the homeowners market – Sales Producers will be a
to insurance carriers having an we’ve seen a resurgence in residential main priority.
abundance of surplus. CL continues home building in Michigan in 2017
to make up close to 70% of GBF’s and we don’t foresee this slowing
premium volume and not much down in 2018. GBF continues to
should change for 2018 in that have great success in writing new
respect. Starting in November of 2017, home & auto business with Citizens
we’ll have the ability to sell Chubb Insurance. Although, our success
Insurance small business products with Citizens is positive, we are
that gives us another solid company lacking on new business success with
that has the capability to write in all Frankenmuth and a few of other of
states. We’ll have a continued focus our carriers. In order to improve on
on feeding our key profit sharing our quote to closing ratios relating
carriers to maximize both our growth to new business, we’ll look to add an
goals and profitability in order to hit additional personal lines carrier to the
Contingent Bonuses at the end of mix in order to complement our new
2018. business appetite.

08 George B. Ford Agency Inc.

GBF - Growing the
Sales Team for
Future Growth

As stated in last year’s Strategic plan – agencies are faced
with three choices when running an Independent Agency
in today’s marketplace, which are Milk It, Sell it or Grow
it. These three choices will continue to influence the
insurance industry mindset throughout 2018.

HOWEVER, IT’S BECOME apparent having a dynamic “Sales Team”. Along with the GBF Staff
over the years that GBF’s agents So deploying human capital on mentoring the new producers,
have steadily lacked in the area the Sales side for GBF will make MarshBerry will also run a
of new business production. the biggest difference in securing Sales Performance Program
There is a combination of the agencies future growth. throughout the year with each of
factors affecting our lack of We’ve realized as agency we’re these producers to better gauge
new business production such going to need talented young their strengths and weaknesses
as age, health, and attitude producers to replace the growing as they immerse themselves
and probably the most percentage of producers that are in the insurance industry sales
deciding factor - complacency. nearing retirement age. process. The overall goal is
As an independent agency, to make sure that any new
the lifeblood of an agency is With that being said, during producer we bring on board gets
retaining 85%-95% of Renewals 3rd Quarter of 2017, GBF hired the right education, mentoring
and having a steady flow of New MarshBerry Consulting Services and backroom support, so they
Business Production. When to help recruit 1-2 new Sales can do what they were brought
you have both (Renewals/New Producers to GBF. Lucky enough, into do, which is SELL.
Business) hitting on all cylinders GBF was able to hire two new
this gives GBF a better chance Sales Producers from this
of maximizing our Contingent program – Kerry Kreutzberg &
Bonuses at the end of the Mohamad Abdulaziz. They both
year with our top performing officially started on September
carriers. 25, 2017 and recently became
P&C licensed. They are now
Aside from any Mergers working on developing their sales
pipeline funnel using sales tools
& Acquisitions (M&A’s), GBF provided by GBF & MarshBerry.

understands that growing the

agency depends greatly on

Goals
for 2018

• Growing the Sales Team by adding additional
Producers by year end 2018

• Making sure all new Producers are educated on
Product, Coverages & Market Appetite

• Maintain profitability with all insurance carriers,
especially those who generate larger profit
sharing dollars for the agency

• Continue to have the right mix of carriers that
complement our agency appetite

• Transition Drew Goebel to a Full Time Sales
Producer by end of 2018

• Utilizing Online Sales Lead Generation

• By end of 2018, have the new Producers cross-
sell Home/Auto Insurance

10 George B. Ford Agency Inc.

Insuretech
Conference – My
Takeaway

InsureTech is a one-of-kind insurance conference
that brings together Insurance Companies, Brokers,
Agents, Tech, Entrepreneurs and Investors together
for a 2-day conference to engage and learn about
how insurance and tech co-exist with each other.

ATTENDING THIS YEAR’S how we buy insurance and of aggressive pricing and
conference in October, it was what types of items we insure Artificial Intelligence (AI) claims
eye-opening to see the vast with it. Over the years, VC’s have handling. Important to note
amount of insurance startups poured billions of dollars into that consumers are increasingly
in our marketplace. Considering all different types of companies open to interacting with more
this was only the 2nd Annual claiming they can upend companies online or better yet
Insuretech Conference, it traditional industries whether from their mobile devices.
brought in roughly 3,500 through the use of technology or
attendees and next year it’s the unique appeal to millennials. In closing, given the lack of
slated to have over 5,000 -- brand loyalty in the insurance
impressive to say the least. There is already a good industry and enhanced
number of Insurance carriers mobility of today’s web-savvy
What was apparent at this having moved from resisting consumers, there probably
conference, both Venture online and direct insurance has never been a better time
Capitalist (VC’s) and Venture sales to partnering with and for talented entrepreneurs to
Arms (VA’s) really do love investing in startup companies build companies that change
insurance. What’s telling is the like Metromile, Lemonade, the landscape of the insurance
sizeable chunk of financing for Trov – to name a few. These industry.
these insurance startups comes companies mentioned are
from insurance companies perceived as “disruptors”
themselves, many of whom in the traditional insurance
have dedicated Venture Arms marketplace. In essence, they
(VA’s). Along with this VC’s are eliminate the agent and sell
betting that in the coming years, direct to the consumer based
we’ll see major shifts in on an underwriting model

UNITED STATES INDEMNITY AND
CASUALTY COMPANY LIMITED

12 US Indemnity & Casualty Company Inc.

Philadelphia
Insurance Company

MCNISH AGENCY / USI&C - Philadelphia Great American –
Insurance business relationship has become USI&C
very difficult and presents an uncertain outlook
for 2018. Due to significant underwriting THE PREVIOUS PLAN to leave our
changes initiated by Philadelphia, USI&C accumulated surplus on deposit with
finished 2017 with gross written premium of Great American from our prior quota
$400,000 which is $600,000 less than 2016. partnership will be reevaluated in the
first quarter of 2018. Since the end
In the fourth quarter of 2016 McNish closed of our agreement in June 2015 we
their MGA Premier Marketing Services. Premier determined it would be in our best
was generating surety business from agencies interest to keep our surplus with Great
contracted directly with Premiere. Premiere’s American. That may not be the case for
MGA agreement with Philadelphia required the future.
agents to use Premiere to access Philadelphia.
This business placed written in the Philadelphia Our surplus at the end of 2106 was
/ USI&C quota share program. In late 2105 $364,000. That amount has now been
Philadelphia began contracting directly with the reduced to $340,000 as of October 2017.
independent agents recruited by Premier. The This surplus decrease was due to an
erosion of the Premiere agent network adversely open back injury claim filed in 2014. We
effected the viability of Premier. are waiting to hear from Great American
as to what options are available to us.
The USI&C - Philadelphia Insurance Quota In the past Great American had offered
Share Agreement remains in place for 2018. to assume the IBNR claims for a one
Unless Philadelphia’s underwriting and pricing time reinsurance charge. Once we fully
philosophy changes 2018 opportunities to write understand our options we determine
new surety business will be limited. which direction we will go.

USI&C 2018 Goal

USI&C is well capitalized with in excess of $3 million
of surplus. Mark Churella, Sr’s objective for 2018
is to find new opportunities to put our surplus
to better use. In the first quarter of 2108 we will
begin to identify areas outside of the surety bond
business that may be a good fit for USI&C.

FDI RISK
MANAGERS

14 FDI Risk Managers

Overview

FDI Group is a full service program manager,
consulting firm, and administrator with emphasis
and focus primarily for approved self-funded
workers compensation insurance programs.
Our professional team of employees provide
individual employers and groups with a wide
range of services and risk financing options.

FDI RISK MANAGERS explores provided to the client by Employer
and provides the experience assuming the predictable Characteristics:
and expertise to design losses and transferring the
and implement workers unpredictable losses to a - O ne with better average
compensation insurance third party insurance entity. claims experience over
programs that help reduce All must be completed and many years
employers’ net cost through coordinated to offer the
a well-managed cost client a reasonable risk vs. - O ne with historically
containment program in reward ratio. The Risk Control worse claims experience
coordination with Comp component is the pro-active than average but who
One Administrators and and custom claims/loss would be committed
other entities within the FDI control services provided by to controlling their w.c.
Group. Comp One Administrators. costs.

Techniques that constitute Who is a self-insured When structuring a Self-
a solid Risk Management W.C. Candidate? Insurance W.C. Program,
Strategy consist of Risk it normally requires the
Identification/Risk Analysis/ Virtually employers from all risk (client) to assume a
Risk Finance and Risk private and public sectors are higher degree of exposure
Control. We identify potential candidates for self-insurance. than provided under the
risks and provide creative Employer size is one who is Traditional marketplace and
solutions to manage those currently paying a minimum this may not be desirable
risks. Analysis review consists $500,000 to $750,000 annual for some risks , but the
of review of current risk, premium for their workers’ benefits should allow the
gathering historical risk compensation insurance may client to improve their cash
information and assessing have a desire to consider flow, have better claims and
risk tolerance. Risk Finance this approach as realistic. loss control services and
consist of designing (Smaller premium size may more direct control overall
an effective insurance/ want to consider joining a on their w.c. program. They
reinsurance structure that self-insured group.) will also receive the benefits
will allow the rewards to be

from underwriting profits which Many factors will shape the landscape of self- FDI Risk Managers, Inc.
is normally assumed by the insurance in the next 5 to 10 years, The future
insurance carriers in the standard economic activity, the tightening of credit markets,
marketplace. but the four main issues appear to rise to the top
are: The Impact of Health Care Reform/Regulatory
Focus management Environment/Rising Medical Costs/Employers
attention on Risk Finance Turning to Unbundled Claims Options.
and Loss Control
the number of employers One have now been appointed
• Pricing and coverage stability choosing self-insurance and by Bridge Excess Solutions
• Improved services large deductible programs to represent Bench Mark
• Greater Input and Control from has continued to rise. This is Insurance Co. for excess workers’
primarily due to the significant compensation insurance. Bridge
Client cost savings under the expense Excess is a new MGA formed
• Access to underwriting Profits side and combined with a more to underwrite excess workers’
focused emphasis proper claims compensation in Michigan,
and Investment Income management and on loss control Ohio, and Indiana. They have
• Improved allocation of and accident prevention. a partnership with Benchmark
Insurance Company an A- VII Best
Expenses to Identified Needs New Excess Workers’ rated carrier. They desire to focus
of Client Compensation Carrier underwriting in the Retail/Service
Appointment & Hospitality/ Manufacturing /
The Future of Self- Schools & University/Nursing
Insurance: As reported last year both & Healthcare Facilities. We are
FDI Risk Managers and Comp one of three appointed TPA’s
According to Mark Wilhelm
of Safety National Insurance
Corporation Workers
Compensation Self-Insurance has
been a profitable arrangement
in the short and should be
profitable in the long-term. He
has reported that self-insurance
is almost always the most cost-
effective option available for
employers. The biggest strength
of self-insurance is it gives the
employer total control over its
insurance program with the least
amount of frictional costs.

He also stated that Self-
Insurance along with large
deductible w.c. has grown
steadily over the years. Now,
almost 50% of America’s
workforce is covered under
self-insured or large deductible
workers’ compensation. Although
insurance rates have increased
and decreased over the years,

16 FDI Risk Managers

and there will be only a few solicit accounts directly to clients
additional agents/brokers due to potential conflict with agents
appointed. They could possibly that provide business opportunities
replace a void in the Michigan/ to Comp One. Therefore, our only
Indiana middle-market segment business activity is through current
of self-insurance that became agents/brokers or new business
available with the departure of opportunities via Comp One
Citizens and the Accident Fund contacts.
over the past few years. We
are pleased to have them as a We anticipate 100% Retention of
market. business. We did however lose one
expected small account in 2017 as
Activity/Retention/ the manual premium for the school
Success district was under $100,000, thus
not a good qualified self-insured.
FDI Risk Managers operates We were successful in obtaining a
as a wholesaler and does not new individual Ambulance Service
account that was of good size,
Summary lowered their Specific and Aggregate
Retentions as well as lowered the
It is the feeling that FDI Group is pricing of their excess. We also
well position to continue growth placed them on a Two-Year Program.
in the regional area for self-
insurance and FDI Risk Managers We were also again successful in
should benefit. We are currently negotiating the Excess Aggregate
well position in the excess Loss Fund for the 2017/18 policy
workers’ marketplace and well period of MAAS as well as the prior
capable of assisting any client/ four years -that allowed MAAS to
agent in the effective delivery hold their member’s manual rates
of insurance/risk management for a total of five consecutive years.
services. This made our Fund Administrator
extremely happy.



18 Health Alliance Administrators

Year in Review

2017 marked the 5th Anniversary for HAA and it
proved to be an interesting year. We began the
year knowing we would sell less new business
than we had in 2016 due to lack of price and
product in the Individual market.

LAST YEAR WE exceeded the ACA directly impacts our carriers offer this resource.
our individual goal of 4,000 sales and revenue each year. Therefore, HAA agreed to
members in January, this year build an agent portal for HAP
through October we are 96% As a result of the individual but we have had challenges
to our 2,700 member goal. market losses, HAP asked getting the needed data from
On the group side, however, HAA to service all agent HAP. Our work on the portal
we started the year strong sold individual business in continues in preparation of
as HAP had great product April. Our block of business our upcoming meetings with
and price in the small group increased by 5,000 members, HAP Leadership. We hope to
market. However, Blue Cross however, we agreed to get the buy in that will pave
Blue Shield of Michigan service this business at no the way to get the data from
(BCBSM) refiled their rates cost to HAP. HAP hired a new HAP.
beginning 3rdquarter and CEO, CFO, COO and CMO
HAP’s competitiveness this year. The new leaders HAA launched our new,
decreased significantly. have set a new tone for HAP revised website that is
We are currently 81% to which includes a change to getting rave reviews and is
goal through October and HAP’s culture. Their initiatives being compared to a website
believe we will come very closely match how HAA has launched by our competitor,
close to meeting our group always operated so we are Action Benefits. Action
goal. Our retention rate for excited to see the additional Benefits charges agents for
existing business through changes. The CEO and CFO their website which includes
October is 93%. Through the visited HAA to gain feedback a live chat capability with
end of this year, HAA will be on our experience with expanded business hours.
managing $206 million in HAP. The new leadership HAA also completed our first
annual premium for HAP. We understands what HAP needs agent survey which yielded
are currently servicing 994 to accomplish so we are high marks for our team.
groups with 19,000 members, confident that HAP’s future The survey was designed to
over 12,500 individual will be bright. Meetings make sure we are providing
members and 1,500 Medicare with the COO and CMO are the level of service the agents
members. Total income for scheduled for the end of expect.
the year decreased $500,000 November. HAP had also
due to the individual market been struggling with finding IT As HAA heads into peak
changes. This demonstrates resources to build an online season, our team is busier
how the instability of the agent portal that houses their than ever with Medicare
individual markets caused by book of business. All other open enrollment, January
renewals, and new group

business. Unfortunately, HAP fired two Due to the individual market changes, we stand to lose 50% Health Alliance Administrators, Inc.
Senior Managers in the Underwriting of our business, which will cause another hit to our bottom
department so they have had significant line for the 2nd year in a row. HAA will build upon our
backlogs. Generally all January renewals current sales and marketing activities to exceed our goals.
are distributed by now but we have over
60 groups that are overdue. Agents are on the small group and Medicare • Provide more training on all product
anxious to get the renewal information markets, where the most opportunity lines and additional topics, both in-
and we fear this may impact our overall exists. person and via webinars
retention rate.
In 2018, we plan to: • Communicate more regularly with
2018 will bring new opportunities agents, including face to face visits,
for success internally at HAA and care calls, and email communication
externally with our partners – HAP and
the agent community.

Refining Our Internal • Build upon our agency profiles to Operations
Operations - 2018 move more producers into higher
categories 2018 IS GOING to be a year of
2018 ENVIRONMENT – The individual organizational change for HAA,
market in Michigan continues to - . K ey agencies – continue to partner including staff changes and a
suffer the negative impacts of the and produce reorganization of departments.
Affordable Care Act marked most As the landscape of our industry
recently by President Trump’s - . Regular producers – identify continues to evolve and digress all at
Executive Order cutting funding additional potential the same time, it is important that we
for the Cost Sharing Reductions. review our business model to keep
Therefore, Michigan residents will - . N ew producers – educate and up with industry changes and service
have higher than usual rate increases motivate to sell HAP products expectations from our agents and
in the individual market ranging partners at HAP.
from 17-50%. HAP made a business - . Dormant agents – reach out and
decision not to participate on the investigate why Since our inception, we have
Marketplace and we expect that our traditionally sought industry
individual book of business will be • Become more consultative on all size experienced employees who could
cut in half as a result of individuals groups consult on their area of expertise, but
needing to choose another carrier also handle day-to-day administrative
offered on the Marketplace in order - . Know our sweet spots and where tasks. This model worked well for
to receive a subsidy. we beat the competition the past five years, but we now find
ourselves at a pivotal turning point.
The small group market continues - . R ecognize good vs. bad Based on the volume of business
to be stable. However, there has opportunities we are managing, the consulting
been a change to the small group demands along with administration
definition which will push groups - . Sell the strength of HAP requirements has become challenging.
that were formerly small to the large We find ourselves needing a better
group (50+) market which is currently - . G ain feedback on lost business balance of experienced consultants,
not as competitive. Many groups still administrative support and increased
maintained their old plan which was • Consult with HAP regularly to remain automation. The challenge with
allowed again for another year but competitive in all markets that shift is 75% of our staff fall in
many of those group went to an ACA higher wage brackets. Therefore,
plan due to more competitive rates. - . Small group - provide competitive tough decisions need to be made for
data if there is a need to refile staffing in 2018. We will be looking at
Even though many attempts have rates, assist with design of 2019 all options including decreasing staff,
been made to change the ACA nothing plans changing full time positions to part
has been successful, so it remains the time positions, and reducing hours
law of the land. - . Large group – provide feedback during non-peak seasons. We need
on product and pricing changes to to carefully balance our needs during
Sales assist with planned refile in early busy time versus non-busy times to
2018
HAA HAS NOT been given our 2018
goals yet, however, our focus will be - . . Medicare – provide product and
price competitive data to ensure
that HAP remains competitive in
2019

- . Individual – assist with design
of 2019 plans, work with HAP to
assess ability to go back on the
Marketplace in 2019

20 Health Alliance Administrators

deliver the service our agents of membership, billing and status communications in all
have come to expect. claim issues that HAA works on areas of our business (service,
warrants this change. renewals, consulting issues,
As part of the reorganization, new business, quoting) will
all small group renewal HAA has always been known also be a contributing factor to
functions will transition from for the excellent service we overall improved service.
Agent Service to Enrollment. provide our agents. In 2018,
Small group renewals is we are striving for outstanding Recent staffing changes
process driven with defined service. We will accomplish at HAP has a direct impact
timeframes. Based on the this through expanding our on our team. It is essential
success we have experienced care call efforts, publishing that HAA strengthen and
with processes and oversight and following agent service maintain relationships with
in the Enrollment department, standards, setting clear key individuals and forge new
renewals are best suited under expectations on turnaround positive relationships with the
that umbrella. With renewal times, re-visiting internal new players at HAP. Cultivating
functions being removed from escalation procedures with our HAP relationship helps
the job description, the primary definitive timeframes and solidify our continued
focus for Agent Consultants leveraging Act!. Our continued partnership.
would be service. The volume effort in automating agent

Conclusion

For the second time in our HAA HAS A first-class team, however, our business
6 year history, HAA income model needs to be better poised to handle the
will drop. However, income changes in our business volumes, whether significant
is expected to remain above or insignificant. We expect the internal changes at
the 2015 level. The $500,000 HAP, specifically in underwriting, to increase HAP’s
loss in individual business competitive position in the market later in 2018.
is expected to be offset by
new group business and We will remain committed to achieving our goals,
Medicare business. being profitable, reorganizing our team and providing
the best service to our customers. We will continue to
increase sales and agent exposure to HAP. In 2018, HAA
will be resilient to change to take advantage of every
opportunity to increase revenue and exceed our goals.

Finanical Designs, Inc.

22 Financial Designs Inc.

A year in
review / 2017

At the very end of 2016, we were advised that we
would no longer be selling or servicing the SBAM
Lincoln Financial Plan effective January 1, 2017. Just
like that we lost over $20,000 in annual revenue.

A BUSINESS DECISION 2016. Income is up from a few lines of business
was made to transfer the last year due to a life policy to new carriers so that
business to the BCBSM sold by Mark Churella that the enrollment and data
Managing Agent that produced $175,000 in transfers could all happen
handled each writing agent’s commissions. With those within the Paylocity Online
book of business. The commissions removed, Benefits system. By doing
agents were not pleased Financial Designs is trending so, we effectively removed
with this move since they ($36,703) below 2016 income the need for any paper
had the opportunity to place due to the loss of SBAM applications except in
the business through that business and attrition. situations requiring Evidence
MA originally, but chose us of Insurability from the Life
instead. This was the only Our commission splits and Disability carrier. We
remaining product we were from HAP business sold and also introduced LifeSecure
actively selling. The HAA LifeSecure business through Accident insurance and
team continued to service Al Holdorf are not included in will be conducting Open
the remaining Financial the numbers above but are a Enrollment meetings in
Designs groups on the revenue source for Financial December. We introduced
books. Designs. the LifeSecure Accident
insurance to the employees
Income for Financial On the Signature in October and had very
Associates account, we favorable feedback.
Designs through September successfully renewed
the account and moved
was $205,840 compared to

$67,543 through September,

Our New Norm – 2018

HAA will continue to HAP COMMISSION SPLIT income is expected to decline

service the groups that due to HAP’s decision to withdraw from the Marketplace.
are currently on the LifeSecure income should increase as Al sells more of
books. Any increase in these policies alongside high deductible plans during open
revenue to Financial enrollment.
Designs will be a result
Signature Associates will be easier to administer since all
benefit lines have an electronic data feed with the carrier.

of life insurance policy At some point in the future, we hope to find a new product

commission. line that makes sense to add to the Financial Designs

portfolio. Until then, it is business as usual.

22 F D I G r o u p 2 0 1 8 S t r a t e g i c P l a n n i n g

CLAIM COMPANIES OF
THE FDI GROUP

24 Claim Companies of the FDI Group

2018
Strategic Plan

“Give a Good Idea to a mediocre team and they
will screw it up. But give a mediocre idea to a
great team and they will either fix it or come up
with something better!”

WE HAVE BEEN talking about In his book “Creativity, Inc.” Ed Catmull,
getting the right people on our founder of Pixar Animation and the
bus for years. It is very clear that President of Pixar and Disney Animation,
by keeping our focus on this one points out that it’s not the manager’s job
particular goal as well as knowing to prevent risks. It’s the manager’s job to
our customers and competitors, make it safe for others to take them. Our
at the same time…. we have been focus at the FDI Group Claims Companies
able to measure our continued has been to promote an environment
success. Our customer base that allows for a company communication
and sales revenue continues structure, “where everyone can talk to
to grow within the FDI Group everyone”, and promote solid teamwork
of Claims Companies. We have within our Sales and Operations Managers
had the number of clients using Group. This has been Paramount to our
our services more than double continued success.
in the past three years. More
remarkable, we have gone from Ed Catmull outlines, ‘that one cannot
doing business and handling assume that general agreement will
claims for over 200 companies lead to change and success. It takes
(including Insurance Companies, a substantial amount of energy and
Self-Insured Employers, Third Party commitment from the team to move
Administrators and various Law a group forward, even when all are on
Firms), to doing business with over board.’ Our Leadership team within the
400 Companies. Claims Companies has shown many times,
just such energy and commitment.
This is a direct result of practicing the
following three key principals of business: Building and Sustaining our “Road to
Success” has also been in direct proportion
1. Hire the Winners, to our honesty and candor within our
2. Know your Clients, and Leadership Team… broadening our view
3. Engage your competitors head on with and our ability to remain teachable and
flexible, allowing us to stay ahead of our
every opportunity. casualty claim industry. The following
sections outline our various claims
companies; providing a synopsis of their
activities in 2017, and their goals for 2018.

24 F D I G r o u p 2 0 1 8 S t r a t e g i c P l a n n i n g



26 CompOne Administrators

Headline?

CompOne continues to place focus on securing
new business while maintaining current
relationships with clients, agents, brokers and
excess carriers.

THE REPUTATION OF 2017 by the numbers:
CompOne remains
well-regarded within the • CompOne currently handles claims for 65
industry. The brokers, self-insured employers and 3 workers’
agents and potential compensation funds.
clients are confident
that we are vested in • Customer retention was 98%.
providing them the
service they require. • Gross revenue increased by 15% and
As a result, we have expenses increased by 17% (January-
secured another large August 2017).
and reputable workers’
compensation fund, a the business organically number one focus is
temporary service, a will lead this to be a always trying to grow
manufacturer, a county successful undertaking. our business organically.
road commission and However, growth through
an ambulance service. In The CompOne team acquisition remains a part
addition, the Safety and will place emphasis on of our plan over the next
Loss Prevention team growing the integrated two (2) to three (3) years.
continues to provide disability program, by If the right opportunity
high quality services securing new STD, LTD, arises we would consider
and ongoing customer and FMLA contracts. As the acquisition of another
satisfaction through the technology within TPA, which could also
education programs, our industry continues accelerate the growth
site compliance audits, to advance, CompOne trajectory of our other
regulatory guidance, remains dedicated to service lines (MBR, NCM,
developing new system enhancements; and IME).
audit processes and on-line claims reporting,
training material to enriched reporting As we focus on client
keep us ahead of our perimeters, and data growth, we understand
competitors. tracking based upon it is the CompOne team
customer needs. that has made us the
In 2018, CompOne successful and reputable
CompOne’s objective is company we are today.
will continue to focus on striving to be the largest Employee retention is key
TPA provider within and we will commit to
increasing out of state Michigan, increasing our developing an employee
client list within Indiana retention program.
business within Indiana and progressing into
the Ohio market. Our
and Ohio, through the

relationship with our

excess partners, including

Bridge Excess. Determine

whether purchasing an

existing TPA or growing

Strategic Goals

Claims 1. Expand CompOne’s capabilities functionality and reporting
to handle General Liability capabilities.
Claims and Auto No Fault Claims
(continuation of 2017 goal). 3. Design and implement an
employee retention program.
2. CompOne will work with Startech
to continue enhancing system

Safety 1. Develop web-based training programs (OSHA, MIOSHA, NFPA,
and Loss options for a select category of etc.)
services.
Prevention 2. Be a member of the Rizikon 2017 5. Publish articles (approved by Sr.
goal team (#1, #2), in pursuit of Management Team) in a National
EHS Magazine to help promote
a cloud-based “Client Service, and strengthen our brand.

Consultant Billable Hours 6. Evaluate new and current
conferences for 2018.
Tracking System” solution.
7. Develop an audit process that
3. Focus on customer satisfaction reviews the number of hours
by enhancing the scope of and services rendered by
services we offer; site compliance current customers, so our team
audits, regulatory guidance, and can follow up with clients for
developing new audit processes additional sales opportunities.
and training materials, to keep us
ahead of our competitors. 8. Start to market our Industrial
Hygiene services.
4. Enhance our knowledge base
by attending certified education

Sales 1. Move our TPA operation into business partners and agency
Goals Ohio. Get licensed, establish partners.
EDI with Ohio, bill review
requirements, determine 4. Obtain a list of current clients
customer base, staffing who are self-administering their
requirements, etc. Target launch integrated disability programs
date is Q2. and work on a plan to acquire
those lines of business.
2. Continue to develop agency
relationships in Indiana and look 5. Take advantage of changes
for new business opportunities within our competition that
there. differentiate CompOne from the
rest of the industry.
3. Identify and strive to add one
(1) self-insured group in 2018. 6. Focus on working together as a
Develop relationships with self- team and developing sales staff
insured group administrators by to grow CompOne’ s book of
leveraging relationships with our business.

28 ManageAbility

Headline?

Medical Bill Review 2017 by the
(MBR) & Utilization numbers:
Review (UR)
• ManageAbility MBR/ maintain a bill review
THE BEGINNING OF 2017 UR has 287 customers dashboard with access by
found MBR in catch up mode. that includes: MAI and their customers.
There were 10,000 plus Insurance Carriers,
bills in inventory and the Self-Administered, Self- 4. Reporting in Eclipse MBR:
turnaround time was way Insured Employers, and Working with the Software
above where it should be. Self-Insured Funds. Developers, create and
With the implementation of maintain a reporting
production goals and staff • Customer retention structure for MBR and their
being held accountable, Bill was 99.5% clients.
Review Analysts were able
to work together under • Gross revenue 5. System Edits: Create and
the new structure to move increased by 102% and maintain system edits to
the inventory down to expenses increased include all fee schedule rules
around 4,000 bills and the by 40% (January-August and regulations, NCCI edits,
turnaround time to much 2017). etc.
more acceptable levels.
analysis, trending, and 6. Create a UR Training
The OPS department was feedback. Manual.
streamlined, given structure 2. Improve the implementation
and are now able to get bills process for new accounts. 7. Streamline the UR process:
to Oncourse by next day. Our 3. Dashboard Development: Improve UR output through
data entry vendor, Oncourse, Working with the Software
is now being monitored daily Developers, create and
which has decreased their
turnaround time from four
(4) to five (5) days, down to
2 days and sometimes even
next day (as their service level
agreement states).

2018 will be the year of
continued implementation
of streamlined processes,
increased structure, and
greater efficiencies.

Goals for 2018:

1. Develop a QA Process and
create a Best Practices
manual: to include review,



additional nurse training 2017 by the ahead. We will continue
to decrease time spent on numbers: to better understand our
each case while maintaining customers, guidelines and the
review integrity. • ManageAbility NCM trends in the marketplace.
has 57 customers. We will improve our internal
Nurse Case communication between
Management • Customer retention sales and operations through
(NCM) was 92%. quarterly meetings. Our current
case management software
MANAGEABILITY NCM HAD a • G ross revenue has provided some challenges
good year in 2017. There were increased by 11% and for us and we will continue
over 20 new customer referral expenses increased to manage that system while
sources. The first quarter by 8% (January-August at the same time developing
of 2017 saw the addition of 2017). our own software platform.
three (3) new case managers Developing our own software
to the ManageAbility staff • Total referrals will give us greater control in
throughout lower part of the decreased by 2%. keeping the system relevant
state. New staff is a sign of and up to date.
growth and after their initial month between the three
six month start-up they were of them. Overall customers
averaging 160 hours per continue to praise the efforts
of our case managers and the
results they provide.

As we head into 2018 we
look forward to the challenges

Goals
for 2018

1. Increase our case
management revenue and
referrals.

2. Assess the need for
additional case managers
in Michigan due to
increased business and
case managers moving to
part-time employment.

3. Improve our cash flow and
increase revenue by better
managing Accountant
Receivables and Short Pays.

4. Evaluate the need and
increase our presence
with marketing with social
media.

5. Develop our own case
management software
system and transition away
from Advocate.



32 ManageAbility IME

Headline?

ManageAbility IME’s primary focus in 2017
was concentrated on increasing market share
through expansion of our clientele base.

THE ADDITION OF a new will consolidate A/R activity 2017 by the
Account Executive has allowing us to monitor numbers:
strengthened marketing trends and be more
efforts and 35 new organized in our approach • M anageAbility IME
customers have been to collections as well. currently has 113
added this year in our customers.
continued quest to grow In 2018, our main objective
and diversify our caseload. is to grow our Michigan • Customer retention
We’ve also experienced physician panel, thus was 99%.
an increase in Workers’ increasing our clientele
Compensation (WC) volume base to attract potential • Gross revenue
in comparison to 2016 contracts and expand our increased by 7% and
which has contributed to market share. The addition expenses increased
quicker turnaround times of a Physician Recruiter who by 36% (January-
on payments resulting in will seek out prospective August 2017).
an overall lower no show physicians to join our panel
rate. Additionally, the will aid in this effort. This • Total referrals
Account Receivables (A/R) position will also serve a increased by 7%.
process was reviewed and dual role as a biller to relieve
customized further based responsibilities from others all departments, but
upon the understanding on the team to be more simultaneously the rollout
of how each client focused on other tasks of the client/physician web
processes payments, and to increase our revenue. portal will be a marketing
the implementation of Implementation of the tool we can use to promote
this procedure has yielded new software will not only our services to garner new
better payment outcomes. streamline processes and business.
The new software platform promote efficiency amongst

Goals for 2018

1. Continue growing the Compensation (WC) 5. Consider leasing
Michigan physician volume and non- space or offering
panel to offer a litigated auto cases. block time based on
comprehensive volume.
selection to our 3. Utilize IME-specific
clients to attract software to increase 6. Examine/Monitor
potential contract(s). efficiency amongst all A/R activity to define
departments. reasonable limits and
2. Continue diversifying identify delinquent
our clientele 4. Client/Physician accounts to
base to include web portal customize payment
more Workers’ implementation. approach, as needed.



34 Startech

2017 by the numbers: • Fremont POINT & STREAM Claims &
Payments integration through EDI
• Startech currently has 11 interfaces
customers.
• Utilization/Bill review functionality
• Customer retention was developed & implemented
90%.
• Established HAA to HAP EDI integration
• Gross revenue increased communications and first TEST cycle has
by 55% and expenses been completed
increased by 13% (January-
August 2017). • MEEMIC Queue enhancements, new EDI
interfaces, and new reports development
2017 List of Accomplishments: in progress

• 30 plus enhancements added to Total • Fee Schedule development, testing and
Eclipse product implementation in progress

• 10 plus new EDI interfaces developed and • Migrated to latest Fusion charts and
some of the existing were updated upgraded Total Eclipse dashboard

• Emergent Health Partners and Monroe Startech projects
County Road Commission data to support 2018
conversions completed strategic goals &
objectives:
• Developed new IME software
• HAA web Agents/Users login information 1. DOCStore structure re-org for
claims growth and enhance
migrated to new portal documents access security
• Completed planning phase of new
2. Develop new Application for
Consumers Energy project Case management
• Executed new SOW for CE development
3. Enhance Reporting capabilities
and implementation project of Total Eclipse
• aClaimant integration with Total Eclipse
4. HAP/HAA Agent portal
(Mobile Claim submissions through EDI development
interfaces)
5. Develop TEXT messaging
Application for customer
communication

INFORMATION
TECHNOLOGY

36 Information Technology

Headline?

Information Technology is critical for the FDI’s
mission and its successful operations, and
information technology is needed to create a
strategic advantage for the FDI Group.

WHEN INFORMATION TECHNOLOGY • Data center upgrades (Power
initiatives align with the strategic goals of redundancy & capacity, rack
the FDI Group of Companies, the impact restructures, Network equipment
can be transformative – empowering upgrades & configurations, and
business to enhance customer decommissions).
experience, and improving business
operations to deliver quality of services. • Upgraded internet bandwidth on both
Novi & Okemos locations.
The FDI Group Information Technology
Strategic Plan is to leverage information • Procured new infrastructure for Total
technology and development strengths to Eclipse SQL server and SFTP server
advance the mission of the FDI Group, to upgrades.
help achieve the goals identified in the FDI
Group of companies Strategic Plan, and to • 1099 software upgraded for Vendor TIN
shape the future direction for information verification.
technology (IT) initiatives to create a
competitive advantage for the business. • Intranet and other applications
The Information Technology plan is the infrastructure upgrades done.
result of a process that involved strategic
thinking and business discussions. Cyber Security:

2017 List of • Evaluated and rolled out a Cyber Security
Accomplishments: Training program and 80% users
completed the training.
Information Technology:
• Developed number of Information
• Identified, procured and installed Security Policies and implemented to
necessary infrastructure and software minimize the cyber security threat risks.
components to support the application
upgrades (ACT platform for both HAA • Completed external Penetration testing
and ManageAbility). and mitigated high risk vulnerabilities.

• Upgraded backup server and re- • Procured and installed SOPHOS new
configured for reliable backups. appliance for SPAM and secure emails.

• Upgraded Network Attached Storage. • A significant time spent on server
patching and added cybersecurity
protection tools.

The IT Strategic Plan represents a
collaborative effort across the companies

to ensure that we realize the full IT projects to support
benefits of IT. The below will provide 2018 strategic goals &
overarching goals and respective objectives:
objectives set for the 2018 year:
1. Rollout new Ticketing 4. Upgrade SFTP
1. Leverage our information technology System to replace the infrastructure and
infrastructure and development free limited version enhance security
capabilities to foster innovation and
excellence. 2. Procure and install 5. Implement a backup
new Unified Threat Domain Controller
a. Maintain and enhance the Management (UTM)
IT infrastructure to support appliance for network 6. Procure and install
the operations and software security new infrastructure for
development needs. SAGE ERP upgrade
3. Upgrade Total
b. Provide a secure computing Eclipse Application 7. FAXPRESS upgrade to
environment that ensures data infrastructure and FOIP
privacy and integrity and mitigates consolidate SQL
cyber-security threats. database instances

2. Advance business processes and
operational efficiencies through
effective implementation of
information technology and software
enhancements.

a. Support, upgrade, and enhance
current processes, and required tools.

b. Evaluate and implement new
technologies to improve operational
efficiency.

c. Ensure excellent service to enable
the effective use of technology, and
resources.

d. Leverage mobile technologies
for application access and
communications.

37

38 Rizikon Risk Management Solutions

During the past year we developed marketing material,
built business infrastructure, expanded service
capabilities and increased staff.

FOR THE FIRST twelve months of hold the breadth of knowledge There are a number of factors
operation, the primary market of necessary to fulfill such a role. that place Rizikon in a positive
focus was on Occupational Safety. It was this conclusion that led position as we venture into
This area of service accounts the leadership to make the expanding our current capabilities
for the majority of our current decision to realign the role Eric and look to penetrate into new
business income and offered Waidelich would fulfill within the markets. The first and foremost
the least resistance into market organization. is that current demand for the
penetration. It was projected that types of services we offer have
this market would account for One critical undertaking has steadily increased over the last
eighty percent (80%) of our overall been the determination of decade. Secondly, organizational
business. product pricing. Models that were awareness to risk, the hazards
considered, included: they pose and the importance to
Rizikon began developing its • Cost-plus pricing. address them proactively has now
marketing infrastructure that could • Competitors’ pricing. become a business philosophy that
support the future creation of a • Perceived value to the client. is embraced both nationally and
more sophisticated, results-driven internationally. In short, demand
strategic marketing program. Open 2017 Action Items: is currently rated “moderate-high”
The objective was to develop
fundamental marketing materials. As we have entered into the With much of the foundation
This included catalogs, brochures month of October, there are two laid through the affiliate
and flyers (digital & print), company action items that remain “open”. companies, we are in an
website, and booth backdrop They include: excellent position to begin
so that we could attend several 1. Institute cloud-based “Client pursuing business outside
national conferences as vendors. the market segments we have
Service Tracking System”. historically focused on.
Recognizing the growth of safety, 2. D evelop a documented process
loss prevention (SLP) services within with trending pointing toward
CompOne, and commitment to the to track services rendered, and further growth over the next
launch of the Rizikon business unit, invoice generation. decade.
the leadership approved the hiring
of a third safety professional. Chris Both of these items remain a However, with youth comes
Wilfong was brought on board in priority. However, there were higher growing pains. As Rizikon moves
October 2016. priorities within the larger context into the marketplace to support
of the FDI Group of companies, the needs of the clientele, a best
In July of 2016, Rizikon moved which required the team-members in class organizational structure
into a relationship with JetCo attention. In recognizing that the must be implemented. If for no
with the anticipation of building current methodology is functional,
collaborative relationship it was agreed that we would work to
with third-party to assist with complete these objectives during the
securing government contracts. fourth quarter of the calendar year.
It was determined that due to the
complexity and range of services
offered by Rizikon, JetCo did not



40 Rizikon Risk Management Solutions

other purpose, because acquire contracts with these 2018 Action
the clients will demand it. organizations. There will be a Items
The consultants and service time in which Rizikon controls
providers we utilize have to a percentage of the market The key areas of focus for the
be recognized as exceptional, and the competitors will next fiscal year include:
both in experience and recognize us as a threat and
credentials. discontinue using our services. 1. S ecure new contracts and
Based on historical experience successfully complete them with
In 2018, the Strategic and future projections, we high degree of client satisfaction.
Marketing Plan will focus believe that Rizikon will hit
on three main objectives: this plateau in approximately a.. Achieve vendor status with key
capacity-building, media seven to ten years. brokerage firms.
expansion, and targeting
the high-value market. The The strengths that Rizikon b.. A chieve direct vendor status with:
majority of activity will be has at its disposal is image
driven by the newly hired and size. The FDI Group i..H ealthcare organizations.
manager of marketing and leadership and Rizikon
social media. Rizikon team staff are well respected ii.. . County, Federal & Tribal
members will provide support professionals and have entities.
and input in helping Hannah the ability to move the
Pikula accomplish these organization into the new iii.. A ssociations, Risk Pools and
marketing objectives. markets based on reputation SIWC Funds that utilize third-
and relationships. Our party consultants.
The following companies size provides Rizikon the
(Aon, Brit/Lloyds of London, unique advantage of being iv.. Manufacturing
CMI York, Marsh, USI, and Willis) operationally nimble and
are the primary competitors financially competitive. v.. . F ormer CompOne TPA clients,
we will face in the marketplace. who were heavy users of their
However, it is interesting With the correct Safety and Loss Prevention
to note that two of these mechanisms in place, Rizikon Services.
organizations have outsourced will successfully identify
work to Rizikon and CompOne opportunity, establish 2. T o secure highly qualified
SLP, within the last year. systems to meet the need professionals.
of the client at a competitive
Under the Rizikon umbrella, rate, and provide exceptional a.. Expand pool of 1099
it is our belief that we service while maximizing professionals which hold
will be well positioned to profitability. university degrees, recognized
industry certifications, and
impressive work experience.

3. T he continuous development of
new products and services, (R&D
Innovation)

4. D evelop and implement a cohesive
marketing strategy.

a. Hannah Pikula is lead with Rizikon
staff assisting.

MARKETING

42 Marketing

Looking
Forward:
2018 and
Beyond

The Marketing department will
be structured to work jointly with
business development and sales
teams with the primary goal in
mind: delivering high quality leads.

THE “HOW TO GENERATE LEADS”
infographic that will serve as the frame
for the department’s development into
2018.

The initial step is to define a brand
strategy for FDI Group. A clearly defined
mission, vision, and values guide FDI
Group’s reason for existence, with all
branding decisions following suit. Brand
guidelines with visual standards, audience
research, and competitive market
analysis occur at this stage, bringing
internal teams and stakeholders closer to
understanding the brand.

A brand’s strategy should answer the following
questions:
• Why do we do what we do?
• What is our unique value add?
• How do our service lines/companies contribute

to this greater intention?

The next phase before a brand “launch” is
to create all the assets that support our brand

strategy. This occurs in two Customer Acquisition Cost Lifetime Value (LTV) :
focuses: web design and content (CAC): “cost of convincing” projected revenue
development. Web design
requires a gathering of user Marketing Expenses Determine:
requirements, a clear sitemap # of Customers Acquired = Cost • Average Customer Lifetime /
and wireframes that are easy Per Customer
to update. Simultaneously, Retention
content strategy develops Table 3 • Profit Margin per Customer
by creating clear narratives • Avg. Gross Margin per Lifespan
surrounding service offerings, promoting, then reporting.
mission statement, and “reasons With our results, we can (highly unique to industry &
to believe”. Content strategy is focus on improvement and sales cycle)
implemented through goals (see experimentation through three
KPIs), current resources, topics, major lenses - see table 2. and testing of the marketing and
medium choice, and strategic sales departments. This, however
scheduling. Working through these lenses, is not the end, as reviews and
we can see where campaign testimonials to service delivery
After both pieces are data can become visitor data funnel directly back into content
established (website is launched, and eventually conversion data. curation. They reinforce brand
sales materials, strategic calls-to- It is here where marketing and strategy, mission, and values.
action (CTAs) on landing pages), sales efforts align, and there is a
we turn our attention to what Key “handoff” of a specific prospect to Additional testing after lead is
Performance Indicators (KPIs) the sales and business development captured or handed off to sales
marketing team will present on a teams. They then determine the tdhirS(aeSetcEactOaironc)nhin(Erfelnucgeoinmnceme Omenpadtriekmdeti6izn-a1gt2ion
monthly basis. Again, the “launch” current level of awareness and months after initial marketing
phase is broken into two focuses: nurture to a lead. inv• eKstemywenotr)d- see table 3.
analytics and ongoing content
development. The lead is the outcome of all • Research
combined efforts, disciplines, • Link building
Common KPIs from Google • Guest Posting
Analytics that are indicative of Conversions
content performance include, but Email
are not limited to: Conversions:
• CTAs clicked • Design
This campaign data will inform • Gated Content Downloads • Timing
what, how, and why we publish • Email subscriptions • Testing
social media, digital, and print
content. Content effectiveness Social Media Marketing
is tested in steps A – C: Creating
content, publishing and/or • Research
• Trends, People
Activity • Conversation
• Sentiment
Visitors per Source
• Direct
• Search
• Social
• Referral
• Sales/Tradeshow

Table 1 Table 2

44 Finance, Administration & HR

2018 Strategic Plan

Finance

A Financial Strategic Plan is a road map to grow your
business. It defines your strengths, weaknesses and

RESEARCH INDICATES THAT future. Reviewing Currently most of our independent
companies should first identity our weekly cash- company financial statements
their 5 year long-term goals and flow statements reflect a profit, however some of our
then identify what is needed to be might mean going
successful to put your company
on the right trajectory to achieving back to change companies are not as profitable as our
your 5 year goals. While it may
seem unimportant at times when estimates for sales original proforma.
your business if profitable, it’s not. and expenses. Cash
A company’s long term financial
goals represent its commitment to a flow is king. to running our businesses. Utilizing
strategy that is innovative, updated, A financial plan the financial statements to measure
unique, value-driven and superior our businesses against what we
to those of its competitors. For helps you transform your goals and did in prior years and to measure
internal decision making purposes, opportunities into reality. Once we our businesses against others like
your mission statement guides both determine the areas of financial ours and our competitors is of high
management and employees to growth that we will pursue, our priority. Our financial plan should
make the right decision; decisions projected sales and expenses should enable us to perform differently
that are in line with helping the be monitored and updated on a from our rivals or to perform similar
company achieve its mission. For regular basis. A financial plan is all services in a more efficient manner.
external parties, such as customers, conceptual until you start to fill in the Identifying our strengths, weaknesses
prospected customers and bankers, numbers. Financial analysis plays an and opportunities is a classic model
your mission can inspire them to integral role in our strategic planning, of internal and external analysis
take the actions that you want. our profitability targets and decision providing management information
Financial goals help you identify making. Although expenses are to set priorities and fully utilize
which strengths you must develop monitored monthly, expense budgets our companies’ competencies and
in the near future to improve your currently do not exist and should be critical weaknesses that need to be
companies. A financial forecast implemented in certain areas of the corrected.
focusing on profitability is necessary FDI Group.
to simplify being successful in In business, growth is an
steering your business. Financial goals and metrics are key imperative, not an option. But only
to enabling us to operate efficiently one in ten companies succeeds
We must realize that our and effectively. We must utilize our in achieving sustained, profitable
financial goals are not the same financial statements to measure growth. The Finance Department of
as accounting. We should not get our businesses independently the FDI Group continues to strive
confused about this because the against what we did in prior years to make effective financial choices
financial statements that we review to measure our businesses against that allocate resources and support
focus on profit and loss statements, other companies like ours. We maximum value in return. Our goal
balance sheets and cash flows. should use these comparisons to is to identify and capture revenue
Accounting looks back in time, revise our projections in the future. and cost savings opportunities
starting today and taking a view whenever possible.
of the past. Business planning or The most important reason to
forecasting is a forward-looking view, monitor our financial targets is for our The role of finance in the strategic
starting today and going into the own benefit, so that we understand planning process has become more
how to project how our businesses relevant than ever.
will do. This is for our own internal
benefit. A financial forecast is an

ongoing, living document and a guide

FINANCE,
ADMINISTRATION &
HUMAN RESOURCES

46 Finance, Administration & HR

Current and Comparative Financial Positions - Profitability, Revenue and

Comparisons to Prior Year as of August 2017

G EORGE B. Ford Agency – The remaining the same and loss improved in 2017 from
combined revenue for GBF revenue decreasing. Revenue 2016. Although a 2017 net loss
encompassing contingent decrease by 22.3% in 2017 of ($45,193) is noted, it has
income, commission income, compared to 2016 ($1,433,542 improved over 2016 by 53.1%.
FDI Risk Manager Income, vs $1,844,655). Expenses The 2016 loss was ($96,391)
Excess WC Income and remained level in 2017 and for an improvement in 2017 of
Management Fee Income increased by 1.3% or in the $51,198. CompOne ranks #1
remained level to the same amount of $12,729. in fluctuation on a cash basis
period of 2016. A slight due to its customers primarily
increase of 1.3% or $24, M ANAGEABILITY – being invoiced quarterly. On
867 has occurred, however Manageability’s departmental an accrual basis 2017 vs 2016
expenses have decreased by combined profit increased records a location combined
4.1% or ($80,221). Therefore an on a record level over 2016 increase in revenue of 20.1%
increased 2017 profit occurred due to the procurement of or $370,231 while combined
of $98,040 compared to 2016 the MEEMIC contract. Profit location expenses note an
for a loss of ($7,049). The increased from a loss of increase of 16.5% or an
exciting addition of two new ($4,870) in 2016 to profit increase of $319,032 in 2017.
producers currently in training of $859,841 in 2017 for an
will add anticipated revenue to additional $864,712 in net S TARTECH SOFTWARE –
the organization. profit. Net revenue increase Startech Software provides
greatly while expenses only software development and PPO
F INANCIAL DESIGNS – increased in 2017 by $343,264 provider services to some of our
ANCILLARY (Life and Health) or by 8.7%. Projected future own entities at either a minimal
– Life Insurance revenue also revenue for Bill Review is cost or at no cost. Their financial
remained consistent with 2016. expected to decrease due to an statements remain similar to
A slight loss in revenue of 1.9% adjustment with the MEEMIC that of 2016. A net loss in 2017
occurred in 2017 or $305,266 contract. has decreased from the prior
compared to $311,305 for year by 5.2% or by a net loss
2016. Expenses decreased M ANAGEABILITY IME – decrease of $13,513.
significantly in 2017 for a The gross revenue of MAI
change of 49.0% less than 2016 IME increased by 7.3% and R IZIKON – Rizikon, holding
(2017 - $87,863 compared $110,041 over 2016 while second in line to our newly
to $172,129 for 2016). The physician payments increased formed companies, is ready
decrease in expenses of by $132, 473 or by 15.3% and waiting for new sales.
$84,266 increased the Life thus reflecting a decrease in Loss Prevention sales 2017
Department profit to 56.2% net revenue of ($22,432) or decreased by 41.3% or
higher or $217,403 for 2017 (3.5%). Expenses increased ($10,966). This appears to be
compared to $139,175 for 2016, by $134,836 in 2017 and by a large percentage due to the
The Life Department remains a 36.1% over 2016. Net profit low revenue recorded. In 2017
source of ancillary products for for 2017 decreased by (61.1%) expenses have been increasing
both our HAA and GBF agents. or by ($157,267) compared to due to conventions and
2016. The company reflects trade show that we expect to
H EALTH ALLIANCE an example of how a startup eventually become fruitful. 2017
ADMINISTRATORS – HAA’s business profitability projection expense increased by 22.5%.
profitability decreased can change notably from its The net loss line for 2017 is
significantly in 2017 or by original proforma. ($1,585) or 112.7% less that that
51.0% ($407,824 for 2017 and of 2016 - $12,535 profit.
$831,668 for 2016). This is C OMPONE ADMINISTRATORS
due primarily to the expenses – Novi and Okemos net accrual

Accounting/Administration Finance, Administration & HR

Our Accounting Department continues to operate as
efficiently as possible with the current automation
and software applications that we have.

HOWEVER, THERE ARE set-up, administrative and user training for the ManageAbility
some existing software end training will be during the accounting position for several
upgrades and new software first quarter of 2018. Finance months. The replacement for
installments that are essential will now easily be able to our current receptionist must
to aiding us with efficiency. track and provide automated possess the demeanor, voice
SAGE, Quickbooks and reports relating to expenses for and capability of handling an
Applied Systems are all in
need of being upgraded. conventions, trade shows, etc. average of 520 calls a day that
The Accounting/ we currently receive routed
We are excited to announce through the receptionist desk.
that we are currently in the Administrative Department
implementation stages of will be experiencing the loss We are currently researching
our new employee expense of two long term employees electronic deposits with Fifth
reimbursement software, that will be retiring in 2018 Third Bank to streamline
Concur. This application or 2019. Our Receptionist our daily process and save
provides both a mobile and for the FDI Group and Senior on employee time and
desktop version. All employees Accounting Representative for productivity.
will be required to enter, scan ManageAbility will be retiring.
and submit their monthly Although, exact dates are Cost containment relating
expense reimbursements not apparent yet, once they to overhead and expenses
to their direct manager for are known there will need to continues to be monitor and
approval. The second layer be an extensive overlap and addressed as needed.
of approval will be processed
by Accounting to ensure that
expenses have been entered
and categorized correctly. Once
audited, I will release them for
final approval and payment.
The software also integrates
with the general ledgers in
SAGE and Quickbooks, but
not Applied Systems, for
importing and direct posting
and also integrates with Fifth
Third Bank for an upload to
process ACH payments to
the employees. The need
for scanning the reports will
no longer exist due to the
software providing 7 years
of cloud storage. Built within
the Concur software is also a
mileage calculator and mileage
log. The anticipated roll-out
date, after the completion of

48 Human Resources

Finance, Administration & HR Strategic HR management is defined as: Integrating human
resource management strategies and systems to achieve the
overall mission, strategies, and success of the company while
meeting the needs of employees and company owners.

THE NEED FOR effective and efficient and strive to financially assist our 2018
delivery of HR services is not to be employees, it is surprising to know Human
overlooked. If HR cannot operate that the cause of employee stress Rights
effectively as a mini business, it in the workplace isn’t always about Goals
is hard to convince others that its work. Too often, it is due to personal
input on business issues is worth financial matters which can translate • Implement Concur
anything. In order to accomplish this, into disengagement, absenteeism, Employee Expense
HR will continue to partner with all and lost productivity for our business. Reporting and
levels of management to recognize The fact is that 7 out of 10 employees Reimbursement
our companies’ needs relating to experience financial stress.
employees and its owners. • Research a web-based
In October of 2017 a new carrier, combined solution for
Human Resources has begun the TASC, was implemented for our HR payroll, employee
time intensive search for a combined S125 Flexible Spending Plan on-boarding of
web based solution to encompass due to a reduction in customer benefits, employee
payroll, onboarding of employee service support of our carrier Next time and employee
insurance benefits, employee time Generation Enrollment. This change performance reviews.
benefits and employee performance in carriers was transitioned flawlessly
reviews. We anticipate that the with little interruption to our enrolled • Partner with all
research with multiple vendors and employees. managers to
actual implementation will not occur implement new
until the 3rd quarter of 2018. A new 401k TPA, Wealth performance templates
Management Services was secured for their employees as
We strive to provide our in 2017, replacing CBIZ. Our new well as a skill testing
employees with affordable insurance TPA continues to work closely with program for new hires
benefits, however, the health care our Financial Advisor, Tim Lata. We to help insure the right
reform and industry dictates our hope to engage the attention of our individuals are hired
options and forces our decisions. employees regarding the necessity for the position.
Renewal for all benefits for 2018 for them to plan ahead for their own
have been received. Our rates for retirement. • Continue to provide
our medical coverage have increased guidance and the
by 6% with HAP. HR is currently HR also partnered with our IT necessary managerial
obtaining alternative quotes for department to implement cyber training materials to
medical insurance through Blue security awareness training. This all managers which
Cross, Priority Health and other plan training provided all employees will assist them on
options with HAP. We will review whether working in the office or how to develop a
all options and determine what the working from home, the knowledge better understanding
best economical decision is for our to be aware of all fraudulent emails of our policies and
companies. The dental, life, STD which will reduce the threat of cyber procedures therefore
and LTD rates through Mutual of security attacks. helping them make
Omaha have not increased and are better decisions.
guaranteed through 2019. The vison Employee turnover continues to
premiums through VSP increased by be an issue with certain companies. • Research Employee
5%. Between all companies there were Wellness Plans
33 new hires and 24 terminations, 10
Even though we will base our of these were both a new hire and a
employer contribution on what is termination in the past year.
affordable for each of our companies



2018
Strategic
Planning

39500 High Pointe Boulevard, www.haaweb.net
Suite 400
N ovi, MI 48375
(877) 591-0300


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