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Please review the attached brochure that details the work-flow process of installing and administering the Bill Pay Plan by clicking here: Utility Bill Pay Plan Operational Flow
10. What’s an example of how large the premium and commission opportunities are for a Bill Pay Plan program with a Utility?
AIG, CGC and Marsh have agreed on an arrangement whereby the commissions paid to Marsh for earned and collected Marsh generated Bill Pay Plan premiums received by AIG are set at 18%. At Marsh’s discretion, Marsh commissions can be shared with client sponsors that are properly licensed and are legally able to receive them. For example, let’s take a mid size cable/Internet broadband provider with 10M customers. Supported by the results of CGC’s survey of 1,000 U.S. households conducted by Survey Monkey, with 3% +/- error rate, and taking CGC algorithms of it’s middle case 9.47% enrollment scenario, that annual Bill Pay Plan premiums might be generated equal to about $4.68M and $842,500 of Marsh commissions.
To be more specific, not including its Internet services (FIOS, 5G Home Internet, DSL, and LTE Home) or its Prepaid Wireless services, Marsh client Verizon has an estimated 34 million residential postpaid customer accounts paying an average monthly wireless bill of around $118. If the Bill Pay Plan were installed throughout Verizon’s Postpaid wireless customer base, our middle case scenario projects that the Bill Pay Plan is estimated to annually generate in excess of $110M in premiums and nearly $20M in Marsh commissions including sponsor revenues; and that’s based on a 4.74% enrollment rate. CGC’s actual survey results indicated that 9.3% of respondents stated they would be “likely to buy” the payment protection plan and an additional 19.3% stated they are “Somewhat Likely to buy” the plan. If that were to be the case, the annual Bill Pay Plan premium is estimated to be around $668M, which would generate about $120M in Marsh commissions including sponsor revenues per year. To get an idea of the revenues generated by other similar products, the enrollment rate of similarly priced device protection plans such as Asurion’s is reportedly over 50% and for the popular warranty and “house-to-the street” sewer and natural gas repair-line products, the enrollment rate is reportedly up to 40%.
To see an example of an illustration/presentation of the Wireless Bill Pay Plan for a wireless carrier with 10 million Postpaid residential accounts, click here: Galactic Wireless Bill Pay Illustration/Presentation.
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