In2Matrix New Global Consulting Division


August 6 2012, London

In2Matrix is an insurance broker with offices in the UK, Moscow, Cyprus, Kazakhstan and Ukraine.  In addition, it has a presence in over 100 countries through an independent broker network. In2Matrix has recently announced the launch of its new division In2Matrix Global Consulting. In2Matrix Global Consulting is essentially a one stop solution offering technical consulting for multinationals, with services such as cross border pooling, placement of business, captive insurance, sector and country benchmarking, employee benefits management and administration. The team pools in the expertise and resources of some of the best consultants in the industry. 
The Chairman & CEO of The In2Matrix Group, Mr Gerard Baltazar (GB), and the Head of In2Matrix Global Consulting, Mr Davor Lalic (DL), talk about the strategic focus and the strengths of this new division.
Essentially, what is In2Matrix Global Consulting about and what are the benefits they offer?
DL: In2Matrix Global Consulting offers global insurance solutions for multinational corporations through alternative risk financing.  We specialise in services ranging from multinational pooling and reinsurance to captive solutions, Pan European plan design, and expatriate cover. 
We cover the entire spectrum of employee benefits.
Where is this division based and who will be directing it? 
GB:  In2Matrix Global Consulting is based in London and is headed by Davor. It is oriented towards multinationals, focusing primarily on small and medium sized enterprises (‘SMEs’). We also have the capabilities and resources to cater to large multinationals. 
Our uniqueness is that we can offer SME’s as well as large multinationals anything from local plan design to global risk solutions like multinational pooling or employee benefits captives, all under one roof as a one stop shop service. In fact, we are one of the few consulting firms globally who can offer captive implementation and active management of employee benefits programs.
Who will it be servicing and who are typical clients? 
DL: Whether it is product design, product placement, benefit strategy or on-going advice on employee related issues and business practices in different parts of the world, we can advise and effectively execute integrated custom tailored solutions. 
GB: I would like to add that there is a misconception in the market that global solutions are the need of only larger organisations. As a matter of fact smaller multinationals can benefit greatly from the cost efficiencies of a global proposition.
Contrary to the practice of some other consultancy firms we not only advise, but also support the implementation of the global programs, which is key to their success.
DL: We are one of the most experienced Employee Benefits Captive Consultancy firms in the world. Considering the fact that there are only 71 network fronted employee benefits captives in place globally, very few independent consultants have either the broad based technical bandwidth or the global reach and experience to actually advise on Global solutions, and further carry through the implementation process.
The very nature and scope of Global solutions, requires a high level of domain knowledge and expertise under one umbrella, and we can confidently say that In2Matrix Global Consulting has it, and is uniquely placed to cover the entire gamut of services demanded by such Global solutions.
GB: Typical clients are SME multinationals. However, In2Matrix Global Consulting is able to offer a unique new proposition to companies that would like to participate in the multinational pooling programme, without being a multinational on its own. This is a first in the global market place.
How does In2Matrix Global Consulting differ in its services from its major competitors Marsh, AON etc., what makes it unique? What are the costs of engaging in this proposition?
DL: What differentiates us from our competitors is that we actively manage our clients’ accounts on a daily basis and participate proactively in the risk of our clients’ global programs. We engage on a success fee basis, which means that we share the risk with our clients. We do not charge upfront fees for our consultancy services on pooling or captive propositions, as is the general practice. As far as I know we are unique in this. 
How do clients make a decision about whether a global solution will be beneficial?
DL: Every client or prospect who engages with In2Matrix Global Consulting receives, prior to an agreement, a high level simulation and projections of the recommended global solution or of the proposed global programme, which highlights the improved efficiencies and indicates the cost benefits and profitability. 
GB: The final decision naturally rests with the client. But we feel that by engaging on the basis of a success fee with no upfront cost, the client should be able to make a decision with greater comfort, as compared to when an upfront cost is involved. This is not just about cost savings. The other advantage of pooling is to be able to integrate the policy making process, centralise decision making and improve financial reporting.
What would you say to companies that are hesitant or have not embraced a global proposition? What message would you have for them?
GB: My message is this: If your Head of HR, or the Head of Finance or the CFO comes to you with one million euro, and asks you to throw it out of the window, would you do it? The answer is ‘no’. However, this is exactly what is happening if you do not embrace a global proposition where you can make substantial cost reductions and are able to centralise the decision making process.
DL: It is important to note that these savings can be achieved without affecting the local benefit design or benefits levels. This is because our unique expertise empowers us to leverage the economies of scale of a multinational organisation in order to achieve the best price in the global market, for the benefit of our clients.
GB: That is exactly the point. Each country has certain benefits in place.  We are not going to go in and say to a client that they have to change everything. No, we are simply taking and consolidating what the company already has in different parts of the world. It is about financial efficiencies and about restructuring a company’s employee benefits finances.
We are not saying reduce employee benefits. We say deliver them more efficiently and at lesser cost. In2Matrix Global Consulting will not just show you how, but will also help you do it.
How does multinational pooling work?
GB: Instead of approaching insurance companies in each country individually, there is one pooling network insurance company which is the one point contact for all countries. The pooling network maintains relationships with local insurance companies all over the world.  So if you have 1,000 employees working in 6 countries for instance, you can approach the pooling network just once – rather than having to source and negotiate with 6 individual insurance companies.
DL: It is basically an accounting function, consolidating the accounts of all local insurance policies without changing the basis of the cover. The policies in local countries do not even have to have the same benefits structure, or the same insurer. This enables you to think and deliver locally,  but plan and act globally, picking the cover that is right for the organisation while reaping the cost benefits that come with economies of scale.
Here is a basic example. On the left without pooling and on the right after pooling. The blue part on the top is the so called multinational dividend or the savings achieved through pooling.
Do you have any feasibility studies?
DL: One of our global clients has a multinational pool in place that consists of 3,676 lives in 7 countries and they currently pool Life, Disability and Accident contracts with an overall pooled premium of Ј602,921. 
We have been managing the pool actively for the past four years and the local contracts are underwritten very competitively, however by focusing centrally on locally profitable contracts, the pool return in 2008 was 37%, in 2009 65% and in 2010 53% of the annual premium. We are currently awaiting the figures for 2011 and are confident that the pool will achieve a similar performance. 

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