Business Unit Strategy Employer Medical

Employer Medical Current Strategy

Arenas Arenas Staging & Pacing Economic Logic Vehicles Differentiators Customers Employers Small market; target 10 – 100 lives Products Self-funded medical with stop loss requiring individual underwriting Ancillary Where United States States without legislative barriers Markets where partner network discounts are most competitive

Arenas Where we are active…. Products Individual underwriting (assessing the risk at the member level) is required regardless of employer size Group ancillary products (Life, AD&D, Short & Long term Disability) Sold as package with Medical and Stop Loss Where States without onerous regulations related to small group self-funding/stop loss Markets where sufficient network discounts exist to offer competitive pricing

Arenas Where we aren’t… Employers who aren’t agreeable to individual underwriting Mid-size and large employers (above 100 lives) Self-funding without stop-loss Stop loss without administrative services

Vehicles Arenas Staging & Pacing Economic Logic Vehicles Differentiators Distribution Brokers via MBS and/or MGA relationships Products/Services Core: build or buy Non-core: borrow Key suppliers Networks/PBM

Vehicles Brokers Products/Services Accessed through Managing General Agents (MGA) and Multi-Benefit Services (MBS; a Trustmark subsidiary) A TPA or MGU could have a distribution arm and function as a MGA as well Corporate Account Marketing (CAM) Unique arrangement (NY Life) Products/Services Non-Core (Borrow) Key Suppliers Networks: Aetna/CIGNA PBM: CVS

Differentiators Arenas Staging & Pacing Economic Logic Vehicles General Differentiators Trustmark integrity Broker support and service Telephonic or online enrollment options Additional differentiators against fully insured competitors Ability to individually underwrite Flexible broker compensation Medical product options/flexibility

Differentiators Categories of competitors: Fully insured Carriers following the 2014 rating requirements of ACA (no underwriting) Self funded with stop loss Large carriers Moving into the small self-funded space TPAs with a stop loss carrier Creating self-funded product for smaller groups Insurance carriers similar to Trustmark (Assurant, IHC) Competing in our same space

Economic Logic Arenas Staging & Pacing Economic Logic Vehicles Differentiators Identifying the “right” employers Individual underwriting Self-funding viewed as favorable option

Economic Logic Individual underwriting Need to ensure the premium is appropriate for risk Self-funding product viewed as favorable option Brokers and employers Results in higher margin

Staging and Pacing Arenas Staging & Pacing Economic Logic Vehicles Differentiators 2013/14: Transition fully insured medical to self-funded/stop-loss 2014: Determine claim platform solution 2014: Move to one product framework

Staging and Pacing Transition 25%/$35M (groups/revenue target) existing fully insured groups to self-funding with stop loss product during 2013 and 2014. Determine current claim platform solution New ICD10 compliance requirements in 2014 Need for greater efficiency Revisit PathForward solution and alternatives React accordingly to post 2014 ACA rating reform