The Fundamental Series™ Disability Income Protection

Agenda

Disability Marketplace

Introduction to the Fundamental Series

Claims Overview

Q&A

Disability Insurance Market Overview

Mark Hardy

RBC’s Leadership Position – Market Share

2011 vs. 2012 New Business Market Share (Annualized Premium)

Source: LIMRA Canadian Individual Income Insurance Survey Q4/2012, Q4/2011

RBC’s Leadership Position – Market Share

RBC New Business Annualized Premium and Industry Rank by Year

)

Source: LIMRA Canadian Individual Income Insurance Survey Q4/2006-2012

RBC’s Leadership Position – Market Share

Inforce Market Share, 2012 (Annualized Premium)

)

Source: LIMRA Canadian Individual Income Insurance Survey Q4/2012

RBC’s Leadership PositionUnderwriting

› 31 Living Benefit Underwriters trained in Disability Insurance and/or Critical Illness

› 24 of the 31 are Devoted to Underwriting Disability Insurance

› Combined 100’s of Years of Underwriting Experience› 2 Financial Underwriting Consultants› A team of Part-time and Full-time physicians to consult

on complex medical issues

Wage Growth1997-2011

Source: Statistics Canada Labour Force Survey, 1997-2012

Wage Index – Base 1997

Full Time Employment Index – Base 1997

Source: Statistics Canada Labour Force Survey, 1997-2012

Full Time Employment1997-2011

Disability Opportunity2010 - 2020

Estimated Market – 2010 - 2020

Source: Statistics Canada Labour Force Survey, 1997-2012; HRSDC COPS

Trades & Transport2010 - 2020

Source: Statistics Canada Labour Force Survey, 1997-2012; HRSDC COPS

$1,000,000,000

Introduction to Fundamental Series

Michael Thompson

Introducing the Fundamental Series

› Knowing the Market and RBC Insurance’s Dominance what do we have to offer?

› Simplicity– At the Time of Application– At the Time of Underwriting– At the Time of Claim

› Loss of Income and Business Overhead Expense

RBC Insurance Living Benefit Portfolio

Individual Disability Insurance

The Professional Series

The Foundation Series

The Bridge Series

The Fundamental Series

Retirement Protector

Business Disability Protection

Business Overhead Expense

Key Person Protector

Business Loan Protector

Disability Buy Sell

Critical Illness Protection

Non Cancellable T65 and T75

Guaranteed Renewable T65 and T75

Term 10

Simplified CI

The Fundamental Series – Loss of Income Features

› Loss of Income– Guaranteed Renewable Contract– Injury Only or Injury and Illness Coverage– 24 Hour or Non-Occupational Coverage– Benefits based on either Gross or Net Earned Income– Benefits issued in $100 Increments– Partial Disability Benefits Included– No Pre Existing Condition Exclusion

The Fundamental Series – Loss of Income Features

› Loss of Income– $10,000 Accident Medical Expense

Reimbursement Benefit Included– Best Doctor’s Provided when Illness is Purchased– Illness Underwritten in 30 Days– Injury Policy Issued in 5 Days

› Total Disability Definition

The Fundamental Series – Loss of Income Features

First 36 Months Regular

Occupation Definition

After 36 Months Reasonable Occupation Definition

The Fundamental Series – Loss of Income Features

Maximum Injury and Illness Coverage Issue Limits

Class 1 and 2 $6000

Class 3, 4, 5 and 6 $5000

The Fundamental Series – Loss of Income Features

Accident Death & Dismemberment

Issue Ages 18 to 64

Coverage To Age 70

Face Amount $100,000 to $500,000

Accidental Medical Expense Reimbursement

Benefit Rider$100,000

The Fundamental Series – Loss of Income Features

Feature Business Overhead Expense

Benefit Period 12 Times the Monthly Benefit

Elimination Period 30 Day

Partial Disability Benefit 50% of Monthly Benefit for a Maximum of 3 Months

The Fundamental Series – Injury Application

The Fundamental Series – Injury Application

Pre-Qualifying Questions1. Are your bodily movements or daily activities

currently limited or restricted by any injury or other condition?

2. Are you currently working a minimum of 20 hours per week, 35 weeks per year?

3. Are you a Canadian citizen or been granted Permanent Resident (landed immigrant) status by the Canadian government?

The Fundamental Series – Illness Application

The Fundamental Series – Feature Summary

The Fundamental Series – Rate Guide

› What’s Included– All Premium Rates– Occupational Classifications– Issue Limits– Benefit Determination Chart– Underwriting Guidelines– Height & Weight Chart

The Fundamental Series – Who do we Sell?› Name You’ve Written Down› Self Employed Clients

– High Gross Income and Low Net Income– Using BOE as “Foot in the Door”

› Medically Impaired Clients› Blue Collar Workers

– WSIB Mentality

› “Non-Traditional” Groups› Young Clients

– Injury policy and Graduate them to Fully Underwritten policies

The Fundamental Series – Alternate Offers

The Fundamental Series gives You the Opportunity to Insure Every

Canadian!

Break – 10 Minutes

RBC Insurance Leadership Position

Claims Practices and Philosophies

Jocelyn Tardif

Claims Philosophy

› Provide thorough, fair, objective claim evaluation› Pay approved claims promptly, with high level of

service› Assist clients, where appropriate, in their return to

work efforts

Claims Payment Information

› Annual cash benefits:

› $331 million› Annual new

claims: around 5,300

› Open LTD and IDI claims: around 10,300

$193,000,000

$138,000,000

$331,000,000

0

2,000

4,000

6,000

8,000

10,000

12,000

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

Opened Claims Benefits Paid

Opened Claims 4,500 5,500 10,000

Benefits Paid $193,000,000 $138,000,000 $331,000,000

Individual Group Total

Our Claims Resources

Disability Specialists

Field-basedEmployees

RehabilitationSpecialists

FinancialConsultants

Clinical Specialists

Doctors

DisabilityManagers

Field-Based Rehabilitation

Specialists

Our Medical Resources

Orthopaedic SurgeonsDr. Joseph Schatzker C.M., MD., B.Sc. (med.), F.R.C.S.(C ) Dr. John J. Murnaghan MD. MA. MSc. FRCSC. PsychiatristsDr. Joan Tucker M.D. F.R.C.P.(C), ABPNDr. Sarah VanderBurgh B.Sc. MDNeuropsychologistDr. Ivan Kiss, B.Sc., M.A., Ph.D., C. Psych. Internal MedicineDr. Estera Bekier, M.D., F.R.C.P. (C) Dr. Alice Dong, MD, FCBOM, ABPM

New Claim

Dedicated Claims Contact

› Easy to start the process through a general toll-free phone line

› Assistance with Filling out claim forms

› Hand-holding through the pre-claim process

› Very experienced with simplified Individual Disability Claims

› Over 10 years of claims-handling experience.

Definition of Disability & Other Provisions

Change of Definition at 36 Months

Definitions of Disability

Other Provisions…

Recurrent Disability (6 Months)

Return to Work Assistance

Return to Work Assistance

› Client, employer and attending physician interviews› Clinical reviews› Independent Medical Evaluations

Vocational Rehabilitation / Return to work plans may also include:

› Work site modifications

› Job site analysis and work conditioning

› Transferable skills analysis

› Job search and resume-writing assistance

Senior Sales Consultant

The Fundamental Series – Compensation

Override to MGA+

The Fundamental Series – Compensation

› Example…

$1500 of Premium

FYC 30%

Compensation $450

MGA Override 150%

Total Broker Compensation $1125

Annually Payable

Highlights

› Market Opportunity› RBC Insurance’s Leadership Position› Simplicity› Strong Definition of Disability› Best Doctors› No Pre Existing Condition Exclusion› Increments of $100› Alternative Offers on all RBC Disability Insurance› Compensation

Call to Action

› We want to Partner with you› What can our Sales Consultants offer

– Best in Class Insurance Products and Services– In Field Support– Advice for All your Clients

› Help you Build your Business

Thank You for Your Time