WHY ESTABLISH A GROUP AUTO PROGRAM?

Employers are considering the facts and for one or more of the following
reasons have decided to establish programs:

Group Auto saves employees money 
Group Auto takes less time to establish than other voluntary benefits 
Group Auto assures the employees a quality program. There are many good individually
purchased plans but there are a number of inferior individual plans also. 
Group Auto gets far greater participation than Long Term Car Plans. (Add the Long-Term
Care plan and definitely add Group Auto. 
Group Auto has a high interest level among employees 
Group Auto can help offset the negative impact in the reduction of a core benefit.

Your competitor for good quality employees either already has Group Auto or is most
probably putting it in now. 

Human Resource/Benefits managers should take a serious look at Group Auto because
sooner or later senior management will request information about it. 

WHAT ARE EMPLOYERS DOING?

14% of large Employers said, in 1994, that they would add a
Group Auto program during the next 2 years --USA today

23% of the 100 best companies (February, 1999) to work for have
a Group Auto program. --Fortune Magazine 

35% of large Employers said, in 1997, they would add a Group
Auto program during the next 2 years.--USA today

*WHY DO EMPLOYEES LIKE VOLUNTARY PROGRAMS?

Better Group Rates 74%
Payments through payroll deduction 71%
Better than shopping on their own 67%
Objective information through employer 66%
Better customer service through provider 55%

*February 8, 1999 issue of NATIONAL UNDERWRITER

ARE GROUP AUTO RATES LESS THEN A TYPKICAL PROGRAM? 

Here is a typical rate comparison that shows the type of savings
achieved:

Scenario #1 24% less Scenario #2   7% less Scenario #3  21% less
Scenario #4 27% less Scenario #5 24% less Scenario #6 6% less
Scenario #7 22% less  Scenario #8 21% less  Scenario #9 16% less
Scenario #10 34% less Scenario #11 7% less Scenario #12 16% less

Each scenario includes variations regarding age (including
teenagers), vehicles, marital status, coverage levels and driving
history. They are based on published rates of both the group auto
carrier and the main individual marketplace competition.

The typical enrollment after 12 to 18 months of a
Group Auto and Homeowners Program is 15%

Here are results from some well-known companies after a few years: 

Nabisco 43% UPS 34% Digital Equipment 65%

Typically 40% to 50% of the employees that call for a quotation will
purchase the coverage. This compares to a typical retail purchase ratio of
7%-8%.