“It’s actually been a sequence of strategic acquisitions of property with substantial experience in a couple of plan areas, and so they’re doing work for giant plan sponsors, for payers, and for suppliers,” mentioned John Greenbaum (pictured), govt vp at Threat Methods. “Over a five-year interval, we’ve been very fastidiously property and have acquired a bunch of them that match very neatly collectively. It’s a bit little bit of a puzzle; we’ve acquired completely different items, however we lastly have the suitable assortment of property in place to mix them right into a single entity that we are able to then carry to market.
“I feel the primary acquisition of these corporations was considerably fortuitous. It was early in our acquisition course of, and we actually hadn’t envisioned the idea of Threat Methods Consulting. However as we started to coordinate different asset acquisitions through the years, it grew to become a path that actually led us to the purpose the place we might collectivize them and launch them as a single entity.”
Threat Methods Consulting will present the next providers:
- Excessive-touch consulting and state-of-the-art analytics, technique and consulting (encompassing well being and welfare with deep pharmacy experience in addition to mergers and acquisitions);
- Actuarial providers for plan sponsors, suppliers and insurers (encompassing captive and self-funded packages, long-term care, Medicaid, Medicare complement / Benefit, supplemental well being, life insurance coverage, incapacity revenue, reinsurance and stop-loss, healthcare and community supplier consulting and property and casualty actuarial and consulting providers); and
- Profit audit providers (encompassing worker profit and declare audits; stop-loss providers; and plan doc, coverage and claims assessment).
Breaking down consulting siloes
By merging the collective specialities of every consulting and actuarial agency, Greenbaum mentioned Threat Methods Consulting can additional assist shoppers with an skilled, holistic consulting expertise to handle advanced challenges, and supply superior, proprietary instruments to forecast and plan for his or her future success.
“Loads of the consulting world operates in siloes,” he instructed Insurance coverage Enterprise. “Some simply supply actuarial, whereas others concentrate on audit, or consulting. We noticed the potential of combining and leveraging an built-in suite of providers and capabilities, and apparently, as we checked out every agency’s respective consumer lists, there was a good quantity of overlap. We have been doing audit for a few of the identical shoppers we have been doing actuarial work for, and the identical with consulting – however every agency was providing these providers independently.
“Via Threat Methods Consulting, we now have a excessive diploma of interdependence between the entities, in order that any consumer can are available at one entry level, like audit, after which transfer seamlessly to actuarial and consulting providers.”
To realize this amalgamation, Threat Methods has developed a proprietary high-trust licensed information warehouse, the place all entities could have entry to the identical info and can work inside the identical setting.
“One of many massive focuses of Threat Methods Consulting is to offer providers which might be intensely data-driven,” mentioned Greenbaum. “We need to supply proprietary, predictive, and prescriptive fashions that give shoppers actionable information that they’ll use to make higher enterprise selections. We’re speaking about very massive corporations on the plan sponsor, the payer, and the supplier facet – Fortune 500 corporations that make vital financial selections primarily based on the data we’re offering.”
How will the Threat Methods Consulting enterprise match with the brokerage?
Threat Methods Consulting will function independently from the corporate’s brokerage enterprise, making certain full enterprise separation of shoppers and autonomy of consulting work.
“Each corporations have a very separate company construction,” Greenbaum defined. “The consulting enterprise wants independence from the brokerage enterprise, and we’ve put structural parts in place to make sure that. We’re extremely cognizant of the potential for battle between consulting and brokerage. Our consultants might advocate using numerous threat administration instruments which will contain insurance coverage, however in the end, we have to keep independence between the 2 operations.”
The main areas of labor that the Threat Methods Consulting crew engages in are: medical, prescription drug, life insurance coverage, incapacity insurance coverage, dental, and employees’ compensation – all of that are additionally vital areas of experience on the Threat Methods brokerage facet, Greenbaum identified. The consulting and brokerage companies might share information insights and potential referrals, with cautious disclosure of the widespread possession.
“In the end, our insurance coverage brokers and brokerage crew will be capable of and are already starting to depend on the consulting providers to offer them perception into what their shoppers’ necessities are, and to have the ability to assist information their shoppers,” mentioned Greenbaum. “One of many issues that we’re studying is that our shoppers on the brokerage facet run an enormous gamut from the startup world to very mature massive industries, whereas on the consulting facet, for essentially the most half, our shoppers are very massive plan sponsors and massive insurance coverage corporations. We’re actually attempting to translate a few of our learnings from the massive market [in the consulting business] down into the center market and construct differentiated instruments for our brokerage enterprise.”
What’s subsequent for Threat Methods Consulting?
After the mixing course of of mixing and rebranding all of the entities, Threat Methods Consulting is wanting so as to add new employees and can rent its personal impartial administration crew. The enterprise is presently being run by Greenbaum on an interim foundation.
Shifting forwards, Greenbaum is eyeing “substantial financial progress” for Threat Methods Consulting. He believes the normal consulting market is “ripe for disruption” and that the enterprise’s information technique will differentiate it and “permit us to supply shoppers providers that they actually haven’t seen earlier than”.
Different brokerage corporations to deal with consulting companies embody the worldwide giants like Aon, Marsh, and WTW – and whereas they’re bigger than Threat Methods, Greenbaum mentioned his crew “competes with them each day”.
“Our greatest groups compete with their brokers often, and I feel our consulting enterprise will create a particular mannequin that can permit us to compete extra successfully with them throughout the board,” mentioned the EVP. “It was an necessary step for us to soak up maturing our enterprise. We’ve been a extremely acquisitive firm, however we’ve been acquisitive not only for the sake of shopping for property, however for constructing an organization that had the suitable property to compete in an even bigger universe. The conglomeration of property that we shaped into Threat Methods Consulting has been very intentional, and can assist our progress as an organization total.”