Preferred Partner Agreement Broker FAQ - March 2022
Preferred Partner Agreement FAQ
About the Preferred Partner Agreement between Allianz Partners and Aetna International
Updated 2nd June 2022
1.1 What is the deal we’re agreeing with Aetna International?
Aetna International has taken the decision to focus on its core business and home market in the USA going forward and for this reason it will not be renewing its non-USA international health insurance policies in 2022.
The deal between Aetna International and Allianz Partners is a preferred partner deal whereby Aetna International will work very closely with us to migrate their non-US policy clients over to Allianz Partners. Think of it as switch business which is fully supported and assisted by the incumbent insurer. It is not a merger or an acquisition.
1.2 What kind of agreement is this?
In legal terms it’s an exclusive introduction rights agreement.
1.3 Has the deal been completed?
No. While agreement has been reached on the core elements of the commercial deal, it is still subject to some important legal and regulatory requirements in relation to employment law. We hope to get the green light to proceed within the coming 3-5 weeks. We will keep you updated as things progress.
1.4 Why did Aetna International choose Allianz Partners as its preferred provider to move this business to?
Aetna International felt strongly about introducing their clients to a reliable and established partner that can offer a very high level of cover and service internationally. A partner that can offer a proposition which matches or offers more to clients than the cover they currently have with Aetna International. Aetna International chose Allianz Partners as the best choice based on that criteria.
1.5 Will there be any benefit to our organisation or clients?
Yes. As an insurer partner, we'll have a bigger footprint in the Middle East and in Asia Pacific in particular, so we’ll be able to offer even stronger regional support to clients. We’ll also have much stronger segment expertise and product offerings for SME clients as we’ll closely replicate Aetna International’s flexible and competitive Summit product. This will be alongside the service strengths, cost containment and stable pricing that you're used to.
1.6 I see news about the acquisition of Aetna Thailand, is that part of this deal?
It is connected yes, but it’s a separate agreement with another Allianz entity. This is part of Aetna International’s wind down of its non-Americas insurance business. The agreement with Allianz Partners relates to all of Aetna International’s markets with the exception of the Americas, Thailand and India.
The Aetna International Americas business will become part of Aetna, a CVS Health company. In Thailand, Allianz Ayudhya has agreed to acquire 100% of Aetna International’s shareholdings and Thailand business operations. This is primarily a domestic health insurance business. Aetna International is still exploring options for its Indian Health Organisation business.
1.7 What is the regulatory environment to get the business transferred from Aetna International? Will you be using Aetna International’s existing fronting arrangements and have more capabilities to write onshore business in the future?
Continuity is key to our ambitions in making the transition from Aetna International to Allianz as simple as possible. Where Aetna International has a fronting solution in a country that Allianz doesn’t, we’ll adopt that fronter. We’ll look to start these discussions with the fronters as early as we can in the process and we have a team set up to onboard them within an ambitious timeline. We’ll share more details per country when we are able to. The overriding principle is to adopt the additional fronters. So, yes, absolutely we’ll be extending the amount of onshore solutions. First conversation and focus will be what is needed for migration. We can then look to see how we extend the opportunity for the partnership model as well.
1.8 Which Allianz entity is planning to write the business in the different regions?
As a general rule the following Allianz entities will be used to write any new business previously underwritten by the existing Aetna entities:
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Aetna Transferor Entity
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Allianz Transferee Entity
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Aetna Health Insurance Company of Europe (DAC)(AHICE)
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AWP Health & Life SA (and its Irish Branch)
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Aetna Insurance Company Limited
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AWP P&C SA (UK Branch)
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Aetna Insurance Company Limited (Singapore branch) (AICL SB)
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Allianz Global Corporate & Specialty SE Singapore Branch
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Aetna Insurance (Hong Kong) Limited (AIHK)
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Allianz Global Corporate & Specialty SE Hong Kong Branch
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Aetna Life & Casualty (Bermuda) Ltd (AL&C)
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Allianz entity(ies) will be a combination of the above Allianz entities and the Allianz fronting partners depending on where and how the AL&C business is written
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Please note each policy will be assessed on a case by case basis in line with licensing and local regulatory considerations to determine the correct Allianz underwriting entity or license.
1.9 What will happen to group leavers who need to purchase an individual policy when their employer has migrated to Allianz Partners?Allianz Partners will honour the commitment made by Aetna International on their approach to group leavers. After a 12 months period with Allianz Partners, subject to terms and conditions, migrating clients will be eligible for the Allianz partners group leaver program. For more details click here.
There are a number of countries which are excluded such as USA, Australia, Japan, Brazil, Canada. Please contact us to get the full list of exclusions.
2. Agreements and Incentives
2.1 We have a broker incentive/override agreement in place with Aetna International. Will you continue to honour this so?
We hope to be in a position to transition the agreement you currently have in place with Aetna International. We’re happy to receive and review the agreement you have with Aetna International, at which point we can discuss the details with you.
2.2 Will existing Preferred Partner Agreements (PPAs) with Aetna International be honoured?
Yes. We will work closely with you to ensure a successful transition of your clients to Allianz Partners and to leverage future growth opportunities.
Extensive product mapping has been completed to ensure we can minimise or eliminate any changes.
2.3 Will commission rates change?
No. The commission levels agreed with Aetna International will remain unchanged and will be applied to business transferred to Allianz Partners.
2.4 Who will make commission payments?
Once the client has transitioned, Allianz Partners will pay commission on all premiums from the transition date. Aetna International will take care of calculating and paying any commission due before the transition date.
2.5 We plan to conduct a market review at renewal. Is there any incentive to reward brokers for transferring a high percentage of their business over to Allianz Partners rather than to another insurer?
We believe the transition from Aetna International to Allianz Partners offers the best value and simplest option for your clients at renewal. Allianz Partners will make the move as seamless as possible and your clients will enjoy high levels of service combined with competitive premiums.
2.6 Will you offer two year fixed rates?
No. Given the current global economic volatility and high levels of inflation, we don’t believe multiple year premiums are in the best interests of our clients as they require higher upfront premiums for the duration of the agreement.
2.7 Will we match the Aetna International terms, administration, fronting and commissions on the corporate business?
Overall we seek to match terms. We have assessed all products shared including a comparison of benefits, rules and exclusions. The general view is that we will be offering richer terms. There will of course be the odd exception but this is the plan.
3. Products, Cover, and Terms & Conditions
3.1 What will the impact be on migrating clients’ existing terms and conditions, premiums, cover and services?
We’ll adopt a ‘matched or more’ approach to cover. The aim is that the terms and conditions, level of cover and services will be similar or better, and existing premiums will be matched closely considering medical inflation. It’s very important for us that clients know they’re getting a similar level of cover or more than they currently have, for a comparable premium. If your clients’ needs have changed, we’ll be happy to discuss changes to benefits with you to find the best balance between cover and premium.
3.2 Will the product have the same benefits once Allianz Partners is providing the cover?
Overall, our approach and goal will be to offer ‘matched or more’ in terms of the type and level of cover provided. Clients will be migrated to the closest match Allianz product. However we’ve built a new SME product based on Aetna International’s Summit product, so for that, the structure and cover will be very similar, while using Allianz’s standard wording and description of benefits.
For mid to large corporates that are not currently on a standard Summit plan, we’ll design a close match TOB to meet their needs. Individual clients will be migrated to the closest Allianz Care international health plans which will have an equivalent or higher level of cover.
3.3 Will you explain the main differences in cover when the Aetna International plans are mapped to the closet equivalent Allianz plans?
Yes. We’ll provide details on this, calling out the differences in a straightforward way. For clients on more tailored plans we’ll be able to discuss that at renewal but the same approach of ‘matched or more’ will apply in terms of cover.
3.4 If we have a client on an Allianz product, can we transfer them over to the equivalent Aetna International plan?
Because this isn’t a merger or acquisition, we won’t be acquiring Aetna International’s products and systems, so in general, that won’t be possible. However, we have closely replicated Aetna International’s SME product, Summit. So if you currently have SME clients on an Allianz product, we are open to transferring them to our new Summit product at renewal.
3.5 Will the same underwriting terms apply to individual business?
Clients transferring will maintain their existing underwriting terms including any special conditions, premium surcharge or exclusions. This includes support for moratorium underwriting for migrating clients who are already on those terms.
3.6 After 1st July will you continue to sell both the Allianz Partners Individual and SME products as well as the Aetna International Individual and SME products? Or will you only sell the Aetna International products going forward?
We have agreed the dates for when things will reduce to one company (Allianz) solutions and until those agreed dates, solutions from both companies will be available. After those agreed dates it will be the Allianz solutions, however remember that we are replicating Aetna International’s Summit product for SMEs, so that will be an additional element of our offering going forward.
3.7 Which Aetna International products are migrating to Allianz Partners and what are they called?
3.8 How will Allianz Partners manage IVL clients migrating if they want to relocate to another country?
Allianz Partners will honour continuity of cover without any new medical underwriting for migrating clients who wish to change their country of residence. T’s and C’s apply.
4.1 Aetna International and Allianz use different teleconsultation services. Who will provide these services after migration?
It will be Allianz Partners’ teleconsultation services and providers once the client has migrated to Allianz.
5. Migration and Portfolio Transfer
5.1 From what date will this migration start?
There has been a significant amount of preparation and planning done already, and while Aetna International is still in a collective consultation process with some staff, our plan is that the migration preparation will start in earnest from May 2022 with a small number of select clients transitioning to Allianz Partners from July 2022 on a soft launch basis.
5.2 How will you make this transition process as simple as possible for us and for the affected clients?
Aetna International will work very closely with Allianz Partners at every stage of the transition – including understanding the details of the current proposition; cover and premium matching; pre-migration preparation; clear communication to the client and their staff plus support during and after the transition. Our aim is to make it as easy and convenient for the client as possible, keep them updated at each stage and make sure that they and their staff can make the most of their cover and services.
5.3 What are the benefits for our clients if we move them to you?
The transition will be managed jointly between Aetna International and Allianz Partners, to make it as easy and seamless as possible for the client and their staff. The terms, cover and services will be similar or better while offering competitive premiums. For large clients, the plan is that some Aetna International account management teams will also transfer to Allianz Partners, so clients will have continuity when it comes to the people they’re already familiar and comfortable with.
5.4 I have clients with Aetna International. Why should I move the business to Allianz Partners rather than go out to tender?
We believe that a ‘joint handover’ scenario, where Allianz Partners is working extremely closely with the incumbent insurer, will offer a much faster and more seamless client experience than going down the tender route.
5.5 Rather than wait until the renewal, can we transfer our full portfolio over to Allianz so that it’s all migrated at the same time?
This will depend on the portfolio. If it includes a mix of individual, SME and mid-large corporate then probably not as we won’t be migrating all of the clients at the same time. They have different renewal dates. However we can talk to you about the possibility of migrating certain groups at the same time.
5.6 What will change after the transfer from Aetna International to Allianz Partners?
It will be the same as if a client were switching over to us in the normal way, except that in this case, we’ve built a new product based on Aetna International’s Summit, so that’s a new option. Other than that, it will be like a traditional switchover.
5.7 Do you plan to migrate all of Aetna International’s non-USA international health policies?
Yes, we hope to migrate the majority of this business. There may be small pockets that we aren’t in a position to, or choose not, to take on.
5.8 How long do you anticipate the migration taking?
From start to finish, and with some clients renewing at different times in the year, we expect the full migration to take from 12 to 18 months.
5.9 When we transfer the business over, what will the plan be for renewals in year one and two, as sometimes Allianz is more expensive than Aetna International?
Overall Allianz Partners offers good value for clients, considering important factors like service, network, cost containment and premium. By replicating the Summit product we’ll also carry over the underwriting philosophy and great flexibility Summit offers to adapt to changing clients’ needs. Through strong cost containment measures and by working closely with our brokers and clients, we believe we can offer sustainable and highly competitive solutions.
5.10 Will everything migrate over from July renewals onwards?
We will stagger the migration. 1st July is a soft launch with targeted groups and individuals – details will follow. August is the B2B migration and then individual starts migrating from 1st November (new business solutions can be offered in August).
There are some differences depending on the fronting solution. Our target is all solutions available for migration from 1st November at the very latest, Subject to regulatory approval.
Aetna International and Allianz Partners will work with our brokers in order to ensure they have the full picture so that they can manage their overall portfolio.
5.11 When will we find out what clients are being migrated in the soft launch?
As soon as the consultation process has been completed, Aetna International will confirm the clients chosen and will discuss with the broker directly. We will be fully observing data privacy and data consent and due process. We will be asking for your consent to include Allianz Partners in those discussions.
6. Operational capabilities
6.1 Will this work have an impact on your existing clients?
We are very aware of the need to maintain existing levels of service quality to existing clients. This will be a key success factor and will remain an important focus for us. We hope to be taking on some of the Aetna International staff during this migration and, as per our usual procedures, we’ll make sure that our staffing levels are appropriate to maintain robust service levels.
6.2 Allianz Partners is much smaller than Aetna International in Hong Kong/Singapore. Will you be able to handle the additional volumes?
We plan to take on additional staff in Asia to ramp up our regional support capabilities and this will be fully in line with the number of new clients in this region.
6.3 Which new countries will Allianz Partners add to their portfolio to be able to handle the additional volumes?
Allianz Partners will grow its presence in Hong Kong, Philippines, Indonesia, Vietnam, Thailand, Kuwait, Oman, Bahrain, Morocco and other countries in Africa to cater to the new business coming from Aetna International.
6.4 Does Allianz have the medical network to be handle to cover all regions where we have members?
Allianz Partners’ medical network will grow even bigger than the 1.1 million providers we have today as we plan to expand further into the Asian markets.
7. Claims, Treatment Guarantees, and Reporting
7.1 How will ongoing treatment guarantees and medical claims be managed during the migration?
It will be the same process as for any clients switching to Allianz Partners. Treatment guarantees requested and claims submitted during Aetna International’s period of cover will be submitted to Aetna International. Treatment guarantees requested and claims submitted during the new period of cover provided by Allianz Partners will be submitted to Allianz Partners. Medical providers will direct any appropriate bills based on which insurance card was presented by the insured member. Members will be informed and guided about the process as part of the migration.
7.2 Where can I escalate my challenges regarding claims and treatment guarantees?
You can continue to use your current contacts at Aetna International until such time as the client has migrated, after which point you can use your normal Allianz contact points.
7.3 Do you provide claims reports?
Claims reports are provided for experience rated larger clients in the normal Allianz Partners formats.
8. Administration Services and SLAs
8.1 Will there be any changes in terms of where administration services are provided, for example for clients in Hong Kong and Singapore?
Yes, there will be some changes as we ramp up our own operational and regional support capabilities in the Middle East and Asia and form agreements with additional fronters. We’ll advise you of these changes and contact points when they’re in place. Our aim is to strengthen our footprint in Asia to deliver high levels of service to migrated as well as existing clients.
8.2 Will SLAs remain the same or will there be new SLAs put in place?
Existing Aetna International SLAs will remain in place and be applied to switching business.
9. Digital Portals and Apps
9.1 Currently Aetna International has its own portal and Allianz has a different one. What portals and apps will the members use post migration?
Following the normal switching process, clients will use the Allianz portals and apps once they’ve migrated.
10. Fronting Arrangements
10.1 Will there be any changes to local fronters?
Yes, there will be some changes. We will keep our existing fronters, and where there are any gaps, form agreements with Aetna International’s current fronters. We will keep you updated about these changes.
11.1 Is information being shared between Aetna Internatioanl and Allianz Partners?
Information is being shared, within the constraints of the legal agreements and in compliance with data protection regulation.
11.2 As you are two competitive companies how are you managing data privacy with this client acquisition?
We are following all the data privacy rules and guidelines to ensure that everything is progressed within that framework. Aetna International is not sharing any client names with Allianz Partners. We will ensure that Broker consent is collected. Aetna International will be contacting brokers to discuss their portfolio and we will be requesting consent from you, to have Allianz partners there in the discussions. Aetna International will be providing the renewal terms to clients via their brokers with an Allianz Partner offer, should the client accept the quote, Allianz Partners will pick up the negotiations.
12.1 Will Aetna International continue to quote for new business? If so when will this cease? Who do we approach for new business quotes for individuals, SME and Corporate clients? Allianz or Aetna International?
Allianz is ready for new business quotes as usual, for individuals, SMEs, corporate and governmental clients. Aetna International will cease new business quotes from 1st July 2022 at which point they’ll promote the Allianz Partners products and direct people to the Allianz Partners website and appropriate sales contacts.
12.2 If we contact Allianz for a new business quote, will they be able to quote the Aetna International products?
Because this isn’t a merger or acquisition, we won’t be acquiring Aetna International’s products and systems, so in general, that won’t be possible. However we have closely replicated Aetna International's SME product, Summit, and so we will be able to offer new business quotes on the Summit product, using Allianz’s benefit descriptions and wording. For individual business the Allianz Care plans are open for new business. And for experience rated larger clients Allianz will be happy to provide a customised solution which meets the client’s needs.
13.1 Who do I call if I have any questions or issues as a broker?
For now, please continue to use your usual contact points within Allianz Partners and Aetna International.
Any questions relating to cover or claims for clients currently with Aetna International, can be addressed to your usual Aetna International point of contact.
Questions about the migration process to Allianz can be directed to:
APAC
Tobias Meckert
Head of Sales Asia Pacific
tobias.meckert1@allianz.com
Europe
Patrick Lawlor
Head of Sales UK, Ireland & Northern Europe
patrick.lawlor@allianz.com
MEA
Cheryl Beattie
Head of Sales Middle East & Africa
cheryl.beattie@international-healthcare.com
We’ll advise you of any future changes well in advance, including new contact points within Allianz. The Sales teams in Aetna International and Allianz are working together on the migration plan and approach. There will also be an opportunity for further questions at our upcoming regional broker webinars.
13.2 Will transferred clients have the same points of contact?
Transferred clients and their members will have Allianz support teams within Helpline, Sales and Client Relationship Management etc. We are hoping to bring across a number of Aetna International sales and client relationship management staff, so some clients will retain their existing account management contacts. Account management teams and support teams will be clarified at renewal. This is subject to a consultation process.
13.3 Will the Aetna International account management teams of the affected clients move over to Allianz Partners also?
Some will yes. While we’re still in consultation with the teams affected, the plan is that some of the large client account management teams will move over to Allianz Partners which is great news for the clients in terms of continuity and convenience.
13.4 Who should they contact if new members have a question?
Before migrating to Allianz, members should continue to contact the Aetna International Helpline. Once clients are onboarded to Allianz, they’ll be able to contact our multilingual Helpline day or night.
13.5 Who can I contact if my commission statement is incorrect?
You can continue to use your current contacts at Aetna International until such time as the client has migrated, at which point you can use your Allianz Partners contact points.
