Being the Boss: How
Unbundling Can Save You
a Bundle
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• Roxsann Wilson, Director of Global Risk Management,
CareFusion Corp. a $3.6B medical device company HQ’ed in
Southern California. Roxsann lead CareFusion through a spinoff, setting up the entire Risk Management department from
the ground up. Roxsann also is a member of the ERM Steering
Committee, working to address the top risks facing the
organization.
• Ken Rice CPCU, ARM. AVP, Arch insurance Company, National
Accounts Casualty. Ken has over 33 years of experience in the
casualty insurance marketplace. Ken has held a variety of
underwriting and management positions with Arch, AIG,
Chubb and Hartford including starting up Chubb Atlantic in
1994.
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What to Expect
The goal of this session is for attendees to:
Not Be the Boss who would never consider unbundling because
it is “new” or “different” or because “I just don’t have a clue”:
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What to Expect
But instead – To be the BOSS that considers all the options and
gets the best deal possible for their organization:
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What to Expect
The goal of this session is for attendees to:
 Identify & evaluate the factors to be taken into
account when considering an unbundled program.
 Recognize how an unbundled program creates greater
cost effectiveness along with better service and greater
flexibility.
 Determine how to create a customized unbundled
program that is individually tailored to meet an
organization’s unique needs & requirements.
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What to Expect
We plan to present unbundling from four different perspectives:
 Insured/Risk Manager
 Broker
 Insurance Carrier
 Third Party Administrator (tpa)
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Insured Perspective
Unbundling is more than just having someone besides your
insurance carrier handle your claims:
 Control over claim management approach
 Indemnity vs. Defense expense
 TPA’s have no financial interest in outcome
 Are your customers your potential claimants?
 Collaborative Approach
 Stability & Consistency
 One face to internal customers
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Insured Perspective
Benefits of an unbundled program:
 Service – TPA’s only function is service
 Risk Management Information Systems
 Benchmarking & Stewardship
 Control & Oversight
 Loss Control
 Counsel Selection
 Settlement Authority
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Insured Perspective
Financial Benefits of an unbundled program:
 Risk Analysis Tools
 Best claim is the one you never had
 What is driving your claim expenses?
 Price
 Pay only for what you use
 Cash Flow Considerations
 Absorb the predictable losses without paying a
profit margin
 Ancillary Services & Purchasing Power
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Insured Perspective
Factors to consider when entering into an unbundled
program:
 Additional relationship to manage
 Claim oversight and communication is key to
relationship success
 Compare costs & service
 Tailor a program that is best for your organization
 Sarbanes Oxley
 Oversight & Audit
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Broker Perspective
Much of the content on this portion is courtesy of:
Dirk Van Heyst – Senior Vice President & Casualty
Practice Leader, Lockton Companies, New York, NY
Dirk is the Casualty Practice Leader for the Lockton
Northeast series, focusing on all casualty lines of
coverage. In this capacity he is responsible for the
negotiation and placement of casualty lines of coverage
and the delivery of service to clients. In his 19 years of
experience, he has experience with clients in many
industry segments.
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Broker Perspective
The kind of boss Dirk feels he is vs. the kind we all see him as:
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Broker Perspective
When does unbundling make sense for your client
and items to consider when comparing bundled vs.
unbundled programs:
 Scope of Services
 Pricing Components including “hidden
costs”/imbedded charges
 Service Managers
 Service Assessment
 Flexibility
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Carrier Perspective
What are the advantages and disadvantages of:
 Bundled Insurers
 Unbundled Insurers
 Carriers that both bundle and unbundle
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Carrier Perspective
The kind of boss you find at an insurance carrier - at least in
their minds
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Third party Administrator Perspective
Much of the content on this portion is courtesy of:
Barney Murphree, Esq., Gallagher Bassett Services,
Vice President Account Management, Boston, MA
Manages a Service Team of 14 insurance professionals who
manage all aspects of service for their respective clients.
Prior to joining Gallagher Bassett was employed with AIG
Insurance Company as Director of National Accounts in the
Boston, MA office for 8 years. Prior to AIG was employed as
Risk Manager and Assistant General Counsel for the Boston
Housing Authority for 8 years. Managed the insurance,
safety, claims, and civil litigation for the Authority.
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Third party Administrator Perspective
 What advantages can a tpa provide to an insured
over an insurance carrier?
 TPA’s programs/products that drive outcomes
 Managed Care
 Pharmacy and Narcotics Control
 Litigation
 Look Beyond Price; do your homework, make sure
TPA has experience with your business/Industry
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Questions, Final Comments and
Contact Information
Ken Rice: [email protected] 646-678-2368
Roxsann Wilson: [email protected] 858-617-5860
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