As Ruhl explains, in almost every case, you're replacing insurance that is already in place. Penetration is the toughest thing. What we're doing is providing insureds with another alternative. Some are not interested for a variety of reasons. It really depends on who they are and what they are paying and what type of relationship they have with their current insurance provider.
Penetration takes a strong and continuous marketing campaign to create awareness and generate sales.
Of course, the first step is convincing the employer to offer the program to employees. Quite often, Ruhl says, the employers are looking for a lot in the proposal. Hanover will work with the agent to create the proposal and will participate in presentations. One principal selling point for employers is that this is a voluntary benefit with very little hard costs involved. Normally there are only administrative costs, and those are minimized by blending the deduction for insurance costs into the payroll deduction system.