“It’s actually been a collection of strategic acquisitions of belongings with substantial experience in just a few plan areas, they usually’re doing work for giant plan sponsors, for payers, and for suppliers,” stated John Greenbaum (pictured), government vp at Risk Strategies. “Over a five-year interval, we’ve been very rigorously taking a look at belongings and have acquired a bunch of them that match very neatly collectively. It’s a bit of little bit of a puzzle; we’ve acquired completely different items, however we lastly have the best assortment of belongings in place to mix them right into a single entity that we will then carry to market.
“I believe the primary acquisition of these firms was considerably fortuitous. It was early in our acquisition course of, and we actually hadn’t envisioned the idea of Risk Strategies Consulting. But 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.”
Risk Strategies Consulting will present the next companies:
- High-touch consulting and cutting-edge analytics, technique and consulting (encompassing well being and welfare with deep pharmacy experience in addition to mergers and acquisitions);
- Actuarial companies for plan sponsors, suppliers and insurers (encompassing captive and self-funded applications, long-term care, Medicaid, Medicare complement / Advantage, supplemental well being, life insurance coverage, incapacity revenue, reinsurance and stop-loss, healthcare and community supplier consulting and property and casualty actuarial and consulting companies); and
- Benefit audit companies (encompassing worker profit and declare audits; stop-loss companies; and plan doc, coverage and claims evaluate).
Breaking down consulting siloes
By merging the collective specialities of every consulting and actuarial agency, Greenbaum stated Risk Strategies Consulting can additional assist purchasers with an skilled, holistic consulting expertise to handle complicated challenges, and supply superior, proprietary instruments to forecast and plan for his or her future success.
“Quite a lot of the consulting world operates in siloes,” he instructed Insurance Business. “Some simply supply actuarial, whereas others give attention to audit, or consulting. We noticed the potential for combining and leveraging an built-in suite of companies and capabilities, and curiously, as we checked out every agency’s respective shopper lists, there was a good quantity of overlap. We had been doing audit for among the identical purchasers we had been doing actuarial work for, and the identical with consulting – however every agency was providing these companies independently.
“Through Risk Strategies Consulting, we now have a excessive diploma of interdependence between the entities, in order that any shopper can are available in at one entry level, like audit, after which transfer seamlessly to actuarial and consulting companies.”
To obtain this amalgamation, Risk Strategies has developed a proprietary high-trust licensed information warehouse, the place all entities may have entry to the identical data and can work throughout the identical setting.
“One of the massive focuses of Risk Strategies Consulting is to supply companies which might be intensely data-driven,” stated Greenbaum. “We need to supply proprietary, predictive, and prescriptive fashions that give purchasers actionable information that they will use to make higher enterprise selections. We’re speaking about very giant firms on the plan sponsor, the payer, and the supplier facet – Fortune 500 firms that make vital financial selections primarily based on the data we’re offering.”
How will the Risk Strategies Consulting enterprise match with the brokerage?
Risk Strategies Consulting will function independently from the corporate’s brokerage enterprise, guaranteeing full enterprise separation of purchasers and autonomy of consulting work.
“Both firms have a totally 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 suggest using varied danger administration instruments which will contain insurance coverage, however finally, we have to keep independence between the 2 operations.”
The main areas of labor that the Risk Strategies 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 Risk Strategies brokerage facet, Greenbaum identified. The consulting and brokerage companies might share information insights and potential referrals, with cautious disclosure of the frequent possession.
“Ultimately, our insurance coverage brokers and brokerage crew will have the ability to and are already starting to depend on the consulting companies to supply them perception into what their purchasers’ necessities are, and to have the ability to assist information their purchasers,” stated Greenbaum. “One of the issues that we’re studying is that our purchasers on the brokerage facet run an enormous gamut from the startup world to very mature giant industries, whereas on the consulting facet, for probably the most half, our purchasers are very giant plan sponsors and large insurance coverage firms. 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 Risk Strategies Consulting?
After the combination course of of mixing and rebranding all of the entities, Risk Strategies Consulting is wanting so as to add new employees and can rent its personal unbiased administration crew. The enterprise is presently being run by Greenbaum on an interim foundation.
Moving forwards, Greenbaum is eyeing “substantial financial progress” for Risk Strategies Consulting. He believes the standard consulting market is “ripe for disruption” and that the enterprise’s information technique will differentiate it and “enable us to supply purchasers companies that they actually haven’t seen earlier than”.
Other brokerage corporations to deal with consulting companies embody the worldwide giants like Aon, Marsh, and WTW – and whereas they’re bigger than Risk Strategies, Greenbaum stated his crew “competes with them on daily basis”.
“Our greatest groups compete with their brokers often, and I believe our consulting enterprise will create a particular mannequin that can enable us to compete extra successfully with them throughout the board,” stated the EVP. “It was an vital step for us to absorb maturing our enterprise. We’ve been a extremely acquisitive firm, however we’ve been acquisitive not only for the sake of shopping for belongings, however for constructing an organization that had the best belongings to compete in an even bigger universe. The conglomeration of belongings that we fashioned into Risk Strategies Consulting has been very intentional, and can assist our progress as an organization general.”