Mercer Short Duration Fixed Income Fund Class Y-3 · NASDAQ:MSDYX
Mercer Short Duration Fixed Income Fund Class Y-3 — Mercer Marsh Benefits — MMB Multinational Country Webinar Series (November 2021)
46 slides from Mercer Short Duration Fixed Income Fund Class Y-3's conference presentation, Nov 9, 2021
Slide 1: MMB Multinational Country Webinar Series
MMB Multinational Country Webinar Series November 9th, 2021 benefits that truly benefit
Slide 2: Today's Speakers
Today’s Speakers Katherine Florez Oscar Ramos MMB Multinational Country Leader EH&B Segment Leader Chile Puerto Rico • Katherine has more than 10 years of • 14 years working at Marsh Saldana experience in the insurance market in Chile • 30-year experience in health insurance industry and development
Slide 3: Agenda
Agenda 1. Understanding the Market Environment 2. Social Security and Benefit Structure 3. Supplemental Employee Benefit Insurance 4. Typical Renewal Process 5. COVID-19 Situation Update 6. Mercer Marsh Benefits Capabilities 3
Slide 4: Understanding Benefits Market environment: Chile
Understanding Benefits Market environment CHILE
Slide 5: Chile General information
Chile General information • Capital City: Santiago • Language: Spanish • Current population: 18.950.000 • Currency: Chilean Pesos – UF for insurance coverages • Life expectancy: 80 years • General inflation: 4% • GDP (year): USD 282.300 Millions • Unemployment rate: 10,3% • Healthcare spending:USD 1
Slide 6: What comes to your mind when you think of Chile?
What comes to your mind when you think of Chile? • What is the claim ratio? Any observation of the claim results? • What is your recommendation? (if legally allowed in your country) • Which are next steps? 6
Slide 7: Market Overview: Environment & Insurance regulations
Market Overview Environment & Insurance regulations • Minimum Wage recent increase. • Insurance regulated by CMF (Comisión para el mercado financiero) • Public health system is not well perceived by its users • Private medical insurance is not mandatory • Health Concerns: • Preexisting conditions ar
Slide 8: Social security and benefits structure
Social security and benefits structure
Slide 9: Chile's Social Security Program: Non-professional illnesses and accidents
Chile’s Social Security Program Non-professional illnesses and accidents Insurance contracted by companies, with or without Critical Illness employee contribution. Option to 3° Layer buy one individually on the market This is the 2nd layer of Complementary Health and Insurance contracted by coverage
Slide 10: Chile's Social Security Program: Professional illness and accidents
Chile’s Social Security Program Professional illness and accidents Mutual de Seguridad CCHC The employer must Law No. 16,744 choose an “Administrator of this social security” Social Security that covers Risks of Work Asociación Chilena de - Accidents and Seguridad (ACHS) Occupational Diseases Instit
Slide 11: 1° Layer: Health system
1° Layer: Health system What percentage of the population in Chile is covered by the public system? (Fonasa) 11
Slide 12: 1° Layer: Health system
1° Layer: Health system Only 1 benefit plan. Price 7% from monthly taxable salary. Predefined providers 85% Chilean population The Chilean Health System is mixed Multiple benefit plans Minimum price 7% of the monthly 1. Nueva Masvida S.A. 2. Banmédica S.A. taxable salary (up to US 3000) 3. Colmena G
Slide 13: 2° and 3° Layer: Market Practice
2° and 3º Layer: Market Practice Coverage Amount Annual (UF) Eligibility Life ( death, accidental death, accidental disability, 24 monthly salaries Only Employee temporary and permanent disability) Health UF 500 – 20,000 USD Employee + Family group Dental Employee + Family group UF 20 – 800 USD Crit
Slide 14: 2° and 3° Layer: Market Practice
2° and 3º Layer: Market Practice Preexisting Preventive conditions not treatments not covered covered 14
Slide 15: 2° and 3° Layer: Insurer Market
2° and 3º Layer: Insurer Market Risk classification* AA+ AAA+ AA AA+ AA AA+ AA- A AA Experience years in 165 16 38 26 8 100 9 5 20 Chile Market Share* 35% 29% 7% 10% 8% 5% 4% 2% 0,5% International pooling Zúrich Maxis Swisslife Insurope Generalli N/A N/A N/A N/A Mapfre only provides Death coverage.
Slide 16: Supplemental employee benefits
Supplemental employee benefits
Slide 17: Chile's Supplemental/typical benefits
Chile’s Supplemental/typical benefits Why companies supplement statutory requirements? • Medical benefits supplemental ? Prevalence: 100% Eligibility: Every employee and family group Brief description: Health, dental and catastrophic insurance. • Death benefits supplemental: Life insurance is
Slide 18: Most common benefits provided by companies in Chile
Most common benefits provided by companies in Chile Market prevalence 100% 97% 95% Supplemental health policy Meal allowance Christmas benefit 92% 91% 85% National holiday benefit Supplemental life policy Informal dress code Source: Labor benefit study, Mercer 2019 18
Slide 19: Typical renewal process
Typical renewal process
Slide 20: Standard renewal process timeline
Standard renewal process timeline 4 - 3 months 3 - 2 months 1 month before 2 weeks before 1 month after before Renewal before Renewal Renewal date Pre-renewal Negotiation Renewal Meeting Decision making Post Renewal • Present remarketing • Global / local • Policy update • Kick off meeting • Negotiat
Slide 21: Covid-19 updates
Covid-19 updates
Slide 22: Chile Overview: COVID-19
Chile Overview COVID-19 General description: • Vaccine and administration covered by government • The public and private system covers COVID-19 • Insurers provide coverage for minor and large expenses • Country situation: • Continue to adopt measures to control a third wave. • 90% eligible populatio
Slide 23: Mercer Marsh Benefits Capabilities
Mercer Marsh Benefits Capabilities
Slide 24: Local capabilities
Local capabilities PLAN DESIGN PLACEMENT IMPLEMENTATION • Remarketing exercise • Policy documents review • Review of current information • Negotiation support • Renewal endorsement revision • Plan Design • Vendor Analysis • Change provider if applicable • Review of local legislation • Recommendation
Slide 25: Legal copy goes here.
@ MercerMarsh Beneficios
Slide 26: Understanding Benefits Market Environment: Puerto Rico
Understanding Benefits Market Environment PUERTO RICO
Slide 27: What comes to your mind when you think of Puerto Rico?
What comes to your mind when you think of Puerto Rico? • What is the claim ratio? Any observation of the claim results? • What is your recommendation? (if legally allowed in your country) • Which are next steps? 27
Slide 28: Puerto Rico General information
Puerto Rico General information • Capital City: San Juan • Language: Spanish & English • Current population: 3.1 M • Life expectancy: 81.3 • General inflation: 0.1 • GDP (year): $104.99B • Unemployment rate: 8.19% • Healthcare spending: $2,144 (Medicaid) • Key sectors: Manufacture 28
Slide 29: Market Overview: Environment & Insurance regulations
Market Overview Environment & Insurance regulations • Challenges faced regarding the • Insurance regulated by the Puerto Rico environment of Benefits? Insurance Commissioner • Talent migration to US • Health insurance and other employee benefits regulated by ERISA (Federal • Health insurance regulat
Slide 30: Social security and benefits structure
Social security and benefits structure
Slide 31: Puerto Rico's Social Security Program and Statutory Benefits
Puerto Rico’s Social Security Program and Statutory Benefits United States Social Security: Old-age, survivors and long term disability benefits. Non-occupational short-term disability and Chauffeurs Insurance: Weekly compensation for non occupational disability. Insurance can be purchased through t
Slide 32: Healthcare system
Healthcare system • Puerto Rico Health Care system is comprised of three segments: 1. Medical Indigents (Medicaid): This insurance is 100% paid through government funds and only individuals who fall under certain poverty level are eligible. 2. Elderly (Medicare): For those retirees who attain age 65
Slide 33: Group Health Market
Group Health Market Government Employees Medicare Advantage Medicaid Private Employers MMB Attainable market: $973.3 M MMB PUERTO Rico Market Share: 12% 33
Slide 34: How is the health dollar spent in Puerto Rico
How is the health dollar spent in Puerto Rico Permissible Loss Ratio Large Groups 85% Medical/Surgical/ 35% Drug Spent 15% insurance 5% Dental and Hospital Spent Vision Spent retention 45% Permissible Loss Ratio Small Groups 80% 3-5% commission 1% Taxes 34
Slide 35: Our Current Book of Business Distribution
Our Current Book of Business Distribution STD, 6% LTD, 7% Life, 10% Health, 77% 35
Slide 36: Puerto Rico Group Insurance Market
Puerto Rico Group Insurance Market • Group Health • Life & Disability • Dental & Vision • Voluntary Cancer • Triple S • Triple S Vida • Delta Dental • Triple S Vida • MCS Life • Universal • Multinational • Humana • Cigna (NY Life) Note: Group health Insurance carriers often provide vision benefits a
Slide 37: Supplemental employee benefits
Supplemental employee benefits
Slide 38: Puerto Rico Supplemental/typical benefits
Puerto Rico Supplemental/typical benefits Other than medical benefits are often offered by employers in Puerto Rico. • Life Insurance • Long Term Disability • Short Term Disability (70% Prevalence) • Cancer (80% Prevalence) • Accident (92% Prevalence) 38
Slide 39: Most common benefits provided by companies
Most common benefits provided by companies Market prevalence 99% 90% 70% Health Insurance Group Life Insurance Long Term Disability 70% 80% Short Term Disability Pension Plans Source: Puerto Rico Benefits Trends 2018 39
Slide 40: Typical renewal process
Typical renewal process
Slide 41: Standard renewal process timeline
Standard renewal process timeline TIMELINE 3 month 1 month before before Pre-renewal Negotiation Renewal date Post-renewal • Projections • Market • Implementation • Annual • Loss ratio last analysis Service Plan • Orientations 12 months • Negotiation • Monthly and Experience adjustments Report Medic
Slide 42: Covid-19 updates
Covid-19 updates
Slide 43: Puerto Rico Overview: COVID-19
Puerto Rico Overview COVID-19 General description: • Mandatory testing coverage • Vaccine to be covered by government • Vaccine administration to be covered by insurance carriers • Current Country Situation: • Active vaccination • 81% eligible population is fully vaccinated • 72.3% of total populati
Slide 44: Mercer Marsh Benefits Capabilities
Mercer Marsh Benefits Capabilities
Slide 45: Local capabilities
Local capabilities BROKERAGE BENEFITS CONSULTING • Maintain employer’s competitiveness through benefit • Holistic benefit plan assessment and optimization design • Global, regional and local benchmark • Implement sustainable coverages • Employee benefits perception surveys • Guarantee Compliance (55
Slide 46: Legal copy goes here.
@ MercerMarsh Beneficios
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