AHEAD OF THE CURVE    Vermont agency prepares itself and its clients for new federal health care reform regulations Health care reform rings a warning bell at many independent agencies. New federal regulations are changing benefits plan designs, health plan marketing and agency compensation across the country, and could undermine agency profitability. The Richards Group in Brattleboro, Vermont, faces some of the toughest reform challenges, but has already reorganized its benefit services to comply with new state insurance regulations-and take advantage of strategic opportunities they provide, says managing principal and employee benefits specialist Tom Scull. Founded in 1948 in Brattleboro, The Richards Group has evolved through three generations of family ownership. It has grown to more than 80 employees with seven offices in its home state and New Hampshire. Thomas Insurance & Benefits in Rutland, Vermont, was the agency's most recent acquisition, completed just before the end of 2012. Thirteen employees work in employee benefits operations which generate more than 30% of agency revenues. Benefits, Scull notes, have had the fastest organic growth rate in the agency of the past 10 years. Commercial property/casualty insurance has also grown-but more through acquisition-so the overall ratio of P-C to benefits has remained stable over the past several years. Click here for the complete article …

THE VOLUNTARY MARKET IN THE ERA OF PPACA    Executives foresee new packaging & products Simple choices for employees, better relations for employers and a steady revenue stream for agents and brokers. For more than 30 years, voluntary employee benefit programs, marketed at the worksite, have been important strategic tools for agents, brokers and their clients. But the changes to employee benefit programs triggered by the Patient Protection and Affordable Care Act (PPACA) are also likely to bring change to voluntary benefit programs, creating new opportunities for producers, but plenty of new complications, industry executives say. Jim McGovern, vice president of sales and service for American United Life, a OneAmerica company, says he expects employers will be making big changes in their insured health benefits that could affect their use of employee benefits advisors-and subsequently agent and broker revenues. "For decades, designing and marketing medical benefits has been the single largest task for benefits brokers," he says. "And designing and marketing group medical benefits has provided the largest portion of revenue for benefits brokers and consultants. But as Affordable Care Act provisions are implemented, employers will be rethinking their health benefits." Click here for the complete article …

VOLUNTARY BENEFITS: TEN THINGS BROKERS DO RIGHT-AND TEN THEY DO WRONG    Providers offer advice for capitalizing on growing opportunities It wasn't all that long ago that most independent agents and brokers had little-if any-interest in offering voluntary benefits. "Worksite marketing is relatively new to many," explains Chad Bodner, vice president-worksite sales at Assurity Life Insurance Company. "Due to some changes brought on by health care reform, agents and brokers realize this is a market they need to get involved in." Today, Bodner's company and others find themselves more engaged with independent agents and brokers, helping them understand the business, the sales process, and how voluntary fits into an employer's overall benefits strategy. Along the way, representatives from these providers have had an opportunity to see what successful agents and brokers do right in the voluntary products market, and where they struggle. What they do right The first thing Bodner says brokers do right is recognize the opportunities. "Every broker we're talking to has an interest in pursuing worksite benefits," he explains. And they're acting on these opportunities, in concert with carrier partners. "Because they're quite busy, they are relying on us to help them learn the business and communicate the value of worksite products." Click here for the complete article … THE BUSINESS CASE FOR BETTER HEALTH MANAGEMENT PROGRAMS    IBI offers tools to identify causes and solutions for presenteeism Despite the fact that the cost of health care is a worldwide problem, much of the discussion about it is occurring in the United States. The reason for this is simple; we are paying much more than any other country and, by most accounts, receiving less for it. This topic has frequently been the most popular at risk management and human resource conferences, seminars and Webinars. However, at this point, while the interest is high, businesses have been having difficulty justifying the cost associated with controlling these costs. An inordinate amount of time and effort has been spent in the hopes of finding some financial justification for aggressive loss mitigation. To date, however, this search has proven quite futile. But recent research may help to strengthen a more aggressive position. One of the keys that any business needs to consider in this important justification phase is to document the entire cost aspects. A movement to a more holistic approach is helping businesses zero in on the true cost of the effect of poor health on a company's workforce. Click here for the complete article … LIFE INSURANCE: FILLING GAPS IN KNOWLEDGE AND COVERAGE    How agents can help consumers overcome under-protection Some of the negative effects of the recent financial crisis are only now manifesting themselves. A key issue is the inadequate amount of life insurance protection, particularly in the United States. This is the subject of a recent report from Swiss Re. Titled The Mortality Protection Gap in the U.S., the report offers insight into the severity of this problem. Milka Kirova, senior economist at Swiss Re and co-author of the report, remarks: "This inadequate mortality protection is causing genuine financial hardship." In fact, the report indicates that "many people are driven into poverty after the loss of a breadwinner" because of the lack of adequate life insurance. State of the market The Life Insurance Marketing and Research Association (LIMRA) monitors trends in the life insurance and financial industries, and some of its recent findings show clear needs for both individual and group life coverage that create opportunities for agents and brokers. A LIMRA study found that: "Three in ten U.S. households have no life insurance at all." The study also found that in 2010: "Only 44% of families held individual life insurance, down from 62% in 1984." Further, the study noted: "Employer-provided group life insurance was available for only 49% of households in 2010, compared to 54% in 1984." Overall, the LIMRA study reported the status of the U.S. life insurance market "stands at a 50-year low." Click here for the complete article … BUILDING TIES TO A MULTICULTURAL MARKET    MassMutual tailors its marketing approach to diverse populations As the number of workers who are part of "minority groups" continues to grow, they will have an increasing impact on the employee benefits market. Four years ago an analysis of U.S. Census data by the State Department projected that by 2042 "minority groups" (those identifying themselves as non-Caucasians) actually will represent a majority of the overall population. Insurers, brokers and HR executives all will be trying to understand the needs and priorities of an increasingly multicultural workforce. For example, do people whose families have immigrated to the U.S. within the last generation respond differently to benefits products than do other workers? Massachusetts Mutual Life Insurance Company (MassMutual) began addressing such questions about five years ago by conducting research into the attitudes, needs and preferences of individual minority populations. As a result of this continuing research, MassMutual has built initiatives for several such groups. 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