DALY MERRITT HAS LONG HISTORY OF BENEFITS EXCELLENCE    Benefits accounts for 37% of total revenue Eighty-four years and counting: Daly Merritt Insurance in Wyandotte, Michigan, began its history as a property/casualty insurance specialist in 1928. But years before many other agencies jumped on an employee benefits services bandwagon, the firm found a new business niche that keeps on growing. President and Chief Executive Officer Martin F. Daly says the agency dived into employee benefits, 26 years ago when Executive Vice President John L. Daly joined the firm, developing new levels of expertise and opportunities for the agency. "John, a licensed attorney with a background in the surgical products industry, launched our life and benefits division to augment our services and take advantage of a growth opportunity," says Martin. Today, employee benefits account for 37% of total revenues and grows every year. "Employee benefits are a perfect way to round out our client accounts," Martin says. "When we have a large client working with our property/casualty division, it's strong business. But when we can add their employee benefits, we have a much stronger relationship." As a result, Daly Merritt has achieved a 95% retention rate and steady growth in both property/casualty insurance and employee benefits, he says. The agency reports its number of group clients is up 6.7% this year and revenue per group is up a whopping 43% as the agency focuses "up market," increasing the number of large group clients it represents. "Of course we want to continue to grow our employee benefits revenue. A 60/40 ratio would be a beautiful balance, but our property/casualty keeps growing as well, so we may never really get to that point." Click here for the complete article …

RETIREMENT SERVICES-ADAPTING TO A CHANGING MARKET CAN PAY OFF    Small retirement consultants will have more opportunities, but more competition Steady double-digit growth in health insurance premiums makes a nice offset to what the perpetually competitive property/casualty insurance rates generate, and many independent agents and brokers now balance their strategic commitment to commercial property and liability coverage with group life and health insurance services. Agencies, however, are more uncertain about how to meet their clients' needs for retirement benefit services. Most retirement advisors must be licensed as securities broker dealers and comply with state and federal financial regulations. Retirement plan design must conform to standards set by the Employee Retirement Income Security Act of 1974, which imposes strict fiduciary responsibilities. As a result, some agencies have built retirement benefit practices internally by hiring experienced producers with the appropriate licensing or by sending group benefits producers to school for certification. Others have developed strategic partnerships with local financial planners. But agencies may want to rethink how they handle retirement benefits, industry experts say. Clients' needs are growing and bringing opportunities with them, and post health-care reform regulations have made professional retirement advice more important, experts say. "Individuals struggle to find the discipline, confidence, and guidance to properly prepare for retirement. On top of that, employees greatly value access to resources that their employers can provide to help with any of the critical planning issues of life such as traditional benefits, eldercare, will preparation and retirement," says Kevin S. Trokey, president and chief executive officer of Benefits Growth Network, a St. Louis, Missouri-based agency consulting company. Click here for the complete article …

CONQUERING MARKET VOLATILITY    Demand grows for protective strategies and guaranteed income products The stock market drop toward the beginning of the financial crisis in 2008-2009 was a warning shot fired over the bow of baby boomers. Just as this large flotilla of 50- and 60-something workers was starting to point toward the retirement harbor, they suddenly realized how vulnerable they were to dramatic market forces. Even those in this age group who were using target date funds to cut back on their equity exposure took a hit. What is unsettling for baby boomers about the financial crisis is that it signifies an ongoing exposure to volatility. Bonds, while less volatile than stocks, are producing record low yields today, and their prices will likely fall if inflation begins to rise. Sizable market jolts, like the one that occurred in '08-'09, are nothing new, of course. There was the burst of the Internet bubble in 2000, the market crash of '87, and other periodic large reversals dating back to the Great Depression. What has changed is that with each new shock, fewer and fewer people are covered by defined benefit plans. They're in 401(k)s and other defined contribution plans at work and IRAs outside of work. Giant pension funds are not guiding most baby boomers into port. These are amateur investors at the helm. The volatility problem for benefit plan participants will be magnified after they retire, when they must withdraw funds regularly for living expenses. Funds that are withdrawn during a market decline are not "recovered" when the market turns up. Pre-retirees are looking for a safe entrance to the retirement harbor. Retirees need calm financial moorings throughout their retirement. Both groups are likely to be attracted to products and strategies that address the volatility issue-ones that go further than simple adjustments to stock/bond ratios. ?They'll be looking for new ways to protect their principal balances and also for ways to provide lifetime income guarantees. Click here for the complete article … EMPLOYEE PURCHASE PROGRAM: AN OUTSIDE-THE-BOX BENEFIT    Purchasing Power lets employees buy products via payroll deduction; helps employers achieve HR goals Even when the economy is healthy and jobs are secure, most working people need to think carefully about making major purchases like computers, appliances, and furniture. In a tough economy, many workers either defer such purchases or reluctantly put them on a high-interest credit card. Many larger employers are offering a voluntary benefit that allows employees to buy big-ticket items via payroll deduction, without adding to existing credit card debt or incurring budget-busting interest charges or hidden fees. Through the Purchasing Power program, employees of participating companies can buy new, name-brand products like computers, home electronics, appliances, and furniture when they prefer not to use cash or a credit card. Also available are fitness equipment, baby and kids' gear, and outdoor living products. Established in 2001, Purchasing Power offers its program to companies, organizations, and government agencies that have more than 1,000 full-time employees over age 18 in the United States. Target industries are health care, manufacturing, public administration, retail, education, finance, and insurance. The program is marketed through independent brokers and pays a 7% commission for every shipped employee order. The program is a turnkey voluntary benefit that is administered via payroll deduction at no cost to the employer. Purchasing Power handles marketing, implementation, employee qualification and enrollment, order fulfillment, and customer service. Individual spending limits are based on the employee's annual income so that payments will be manageable. Because payments come out of the employee's check in equal installments over 12 months, there is no risk of late fees. The employee knows the total cost of the purchase up front, including extended warranties, accessories, taxes, shipping and handling, and the cost of payroll deduction. If the employee leaves the company before completing the payments, arrangements are made with the employee to ensure payment in full so there is no liability to the former employer. Click here for the complete article …  Click here to unsubscribe This message was sent by The Rough Notes Company, Inc., 11690 Technology Drive, Carmel, Indiana, 46032 1-800-428-4384