With open enrollment season now officially upon us, how many accounts do you have right now that you know you will be losing as of January 1^st, 2020?  Perhaps you lost an RFP, or a competitor has come in and kicked you out, or the employer has simply decided to cease payroll deductions because they are just too cumbersome and the billing process is too messy.  In any event, you are losing the payroll slot – and in the payroll deduction model, you lose over 90% of that in-force business.

With Piedmont’s model, we can help you transition that existing book of business from payroll deduction over to a split direct deposit format this fall before you lose it.  It’s very simple to do; all we are doing is changing the destination of the deduction.

In payroll deduction, the premium flows backwards from the paycheck to the employer’s checking account to await the bill.  In split direct deposit, the premium flows forward from the paycheck into the policyholder’s Piedmont account.  That’s it!

So, if you already know of an account you are losing, are you just sitting there on the dock waiting for the premium to sail away in three months, or are you doing something about it now?

In Piedmont’s model, everyone wins.  The employer can continue to allow employees to keep their policies but still eliminate the billing and funds collection process and opens up a payroll slot…The employee retains their coverage uninterrupted…And the agent or broker keep their business and renewals on the books!

We just helped a carrier that is losing the payroll slot in a large public sector case to a competitor insulate their existing $400K VB block by shifting it from payroll deduction to split direct deposit starting with the 2020 payroll cycle.

Agents and brokers lose so much business in these takeovers – when the actual policyholder never even took an active step to cancel their policy.  The employer just stops the deduction and then it is over two months before the carrier starts the conservation process!  The employee just gets caught in the takeover crossfire never intending to drop the policy (and then get a letter saying they owe two months back premium if they want to continue)…Crazy!

And once on split direct deposit, the employer does not have the power to stop the payments since it is the employee dictating where to send a portion of their paycheck.  Only the employee can make the decision to cancel their coverage. 

Remember, 58% of VB sales are takeover sales, but you don’t need to let a competitor – or even the employer – roll out your existing block.  Simply shift the policies from payroll deduction to split direct deposit.  Most employers don’t mind doing this since it still is eliminating their involvement in billing and collection.  The employer just doesn’t want to deduct and pay bills for multiple carriers.

What accounts do you have that you already know you are losing starting 1/1?  Act now to approach those employers to shift your existing book to split direct deposit – it allows the employer to do what they want to do moving forward, yet allows the policyholder to make their own choice about keeping their policy.

Don’t make it easy on the competition to take your business! Why be a lame duck and allow a wholesale takeover when you can make the competition work for it policyholder by policyholder? 

Carriers, agents, and brokers have learned recently that once business is placed with Piedmont, it is almost impossible to take away; no matter how hard they try. Trust me on this one.

Contact Piedmont to learn more about how we can help you retain more of your existing business in accounts that are making a change in January!