Wednesday, December 26, 2012

Unum recognized for commitment to clear communication

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Simpler is better. That philosophy drives the approach Unum (NYSE:UNM) takes to customer communication, and recently earned the company a ClearMark Award from the Center for Plain Language.

“This recognition is a great indication of the value of the work we’ve done to simplify our communications in every area of the business,” said Chris St. John, Consumer Strategy director at Unum. “Our industry is complex, so it’s a challenge to make plain language the standard. But we’re focused on making it happen.”

Judges at the recent ClearMark Awards named a guide from Unum the best document in its category. The guide clearly explains how to file a disability claim and what to expect once the claim is filed.
Judges praised the guide’s clear timeline and direct, jargon-free language. The revision of the guide was part of a much broader effort across the company to make Unum’s communications to its customers simpler and more effective.

“Making employee benefits easier to understand and use is critical to helping consumers protect their financial stability,” St. John said. “Individuals are increasingly responsible for choosing and paying for their financial protection benefits. Ensuring they have the information they need in a form that’s easy to understand is a strong focus for Unum.”

Among the ways Unum is making benefits information useful and clear:
  • A benefits education site at GetBenefitSmart.com uses a fun quiz and conversational descriptions to help employees learn how benefits are useful at specific ages and stages of life. The site is also available in Spanish at BeneficiosParaMi.com.
  • A benefits enrollment platform features a simple, shopping cart approach and a video coach who explains insurance terms in plain language;
  • A health care reform information site at unum.com/HealthCareReform offers straightforward explanations of reform and its effects;
  • Benefits enrollment booklets include simple education, rates and forms information, and a front-page summary of when and where enrollment events will occur.
Making clear communication an expectation in the world of benefits is an ongoing, collective effort, St. John said.

“Across our business, we work in teams to assess and improve letters, forms and other documents,” St. John said. “We’ve rolled out training across the company to give employees clear, consistent guidance on simplifying their communications.

“We’ve made a lot of progress, but there’s always more to do. We’ll keep at it.”

View Unum’s winning entry in the ClearMark Awards here: http://centerforplainlanguage.org/awards/clearmark2012/unum/.

Monday, December 3, 2012

Top of our game, four years running

The results are in:
For the fourth year in a row, an independent industry study confirms that Unum stands alone as a voluntary benefits provider with no perceived weaknesses1 — from the products we offer to the service we provide.

Unum strengths include - product breadth, services excellence, strong broker and customer relationships, extensive use of technology, reputation for disability product leadership.  This was concluded after an Eastbridge analysis of the TOP 13 voluntary benefits providers.

Unum sustained market leadership as the #1 whole/universale life provider.  #2 in new VB sales and total inforce VB premium.  #3 in critical illness and short term disability sales.

93% of customers are likely to recommend Unum.

Thursday, November 8, 2012

Strong third quarter gives Unum nice lift into final stretch

Unum US delivered strong results for the third quarter, with positive sales momentum (up 9 percent thus far this year) and strong persistency across our major product lines. Operating income increased more than 3 percent to $216.3 million, one of our highest levels ever.

“We are in a very strong position and should be proud of the results we delivered this quarter,” said Mike Simonds, senior vice president and chief operating officer. “Our unwavering discipline and focus have helped us deliver these good short term results and make progress on our longer term priorities.”
Among the highlights:
  • Unum US sales ended the third quarter at nearly 98 percent of plan and 4 percent over the third quarter of last year.
  • Group disability sales were at 103 percent of plan, core group at 104 percent of plan and IDI business continued a very strong year at 111 percent of plan. VB sales were up 2 percent, but short of plan.
  • Group premium persistency of 90.5 percent remains well above the annual plan of 87.9 percent.
  • As in the second quarter, expenses were favorable, but remain a critical area of focus as we continually look for efficiencies and opportunities to improve.
  • Service metrics across customer touch points continued to be strong and remain above target.
  • The August implementation of the second wave of the Growth Operations strategy went well. More than 40,000 clients are now doing business with us under this new sales and client management model.
The final months of the year are busy ones. Nearly 40 percent of our sales are expected in the fourth quarter and the environment remains intensely competitive, said Chris Pyne, senior vice president and head of Unum US Sales and Client Management.

“We have good momentum as we head into the home stretch,” Chris said. “We have a good mix of new sales and new business on old cases (NBOC) in pipeline and this positions us well for a strong finish.”
The entire industry continues to struggle against strong economic headwinds, including the impact of historically low interest rates. Unum is analyzing these economic factors carefully and taking the necessary steps to mitigate the impact to our business.

“The interest rate environment is certainly impacting us, from returns we see on investments to pricing plans we’re developing for the future,” Mike said. “But we should be proud of our results and our outlook. We are clearly energized and in a good position to carry this momentum through the end of the year.”

Tuesday, October 9, 2012

S&P upgrades Unum's FSR to A from A-

Standard & Poor’s Rating Services (S&P) upgraded Unum’s financial strength ratings to A from A- based on our strong capital foundation and operating performance.

In its announcement, S&P noted that two primary factors were behind the decision to raise our rating: company performance that has exceeded our peers’ for several years, and improved business diversification through increasing supplemental and voluntary product sales. The agency also noted that despite a weak economy, they expect Unum to continue producing consistent operating results and diversifying its business profile over the next couple of years.

This is the second time in two months that our financial strength ratings have been raised, with Moody’s issuing an upgrade in August. With today’s action, all four rating agencies have now upgraded us since early 2010. This is good news in the current economic environment and contrasts with the generally negative outlook ratings agencies have on our industry as a whole. 

 This positive news is another indication of our financial strength to our customers, distribution partners and the financial community

Monday, September 24, 2012

September is a perfect time to broaden your business

September is Life Insurance Awareness Month and a perfect time to broaden your business.  Tell your clients about Unum’s life insurance, which provides flexible benefits to employees, plus excellent education and enrollment solutions.

It’s never been a better time to help your clients assess the financial protection needs of their employees. When many families have little or no savings to help with the high costs of final expenses or pay for a period of long term care, life insurance can be more valuable than ever.

With Unum’s life insurance, first-time buyers can get an affordable amount of coverage with the option to purchase more at later enrollments — with no health questions. The streamlined enrollment process makes it easy for employees to sign up. Plus, Unum provides effective employee education at no extra cost — something that your clients will appreciate.

Build business, while also building life insurance awareness for your clients. Remind your clients about Unum’s life coverage and other important voluntary benefits — and revenues will follow.

Tuesday, September 18, 2012

Industry review finds steady rise in LTD claims

In its seventh annual Long Term Disability Claims Review, the Council for Disability Awareness reports that more than 662,000 people received about $9.3 billion in long term disability insurance payments from CDA member companies during 2011.

The number of long term disability claims has increased industrywide each of the past four years. This year’s results represent a 2 percent increase in payments and a 1 percent increase in the number of people receiving those payments over 2012, according to the study.

Seventeen CDA member companies representing more than 75 percent of the commercial disability insurance market contributed disability claim data for this year’s survey. Though long term disability claims were up overall, claims incidence results were mixed at individual companies across the industry. Incidence refers to the number of claims per 1,000 insured lives per year. The report found:
  • 43 percent of participating companies reported increased claim incidence from 2010 to 2011
  • 38 percent reported incidence as flat from 2010 
  • 19 percent reported lowered incidence
  • In 2010, 56 percent of participating companies reported increased claim incidence
“Similar to the majority of respondents to the survey, we have seen a slight increase in the incidence of long term disability claims at Unum over the past few years,” said Kevin Huber, assistant vice president of Benefit Metrics and Analysis. “This has been driven to some degree by aging of our insured block and the economic environment.”

According to the CDA report, most, but not all, companies participating in the survey cite the economic environment as a factor in increased claims incidence. Participating companies reported insured lives declined by 0.5 percent from 2010 to 2011, reflecting the third straight year that the number of wage earners insured for long term disability has declined. The number of employees insured in employer sponsored plans has declined each year since 2008.

Since 2005, the CDA has conducted the annual review of long term disability claims among the U.S. working population. The review summarizes long term disability insurance claims data gathered from the annual CDA member Long Term Disability Claims Survey.

Unum is a founding member of the CDA, a non-profit group governed by 18 leading disability insurance companies. David Leopold, senior vice president and chief marketing officer for Unum US, is a member of the council’s board of directors.

Based in Portland, Maine, the CDA is dedicated to raising awareness of the challenges of disability and providing education about disability insurance protection.

Read the full claims report here.

Tuesday, September 11, 2012

A better benefits prescription for hospital clients

Unum continues to refine its focus on the hospital segment in the group, voluntary and individual disability markets. Its Health Care Practice team, led by Tiffany Breau-Metivier, director of market development, is helping to create best practices that support new sales, service and persistency.

It’s easy to see why we are focused on the health care market. Unum provides group benefits to more than 1,500 hospitals, representing more than one million health care employees. In the National Client Group (NCG), healthcare makes up the largest customer segment with one in five customers coming from the health care industry. Additionally, Unum provides voluntary benefits to more than 700 hospitals customers, making it Unum’s largest VB segment.

As we focus on this market, our goal is clear: deliver innovative solutions that help hospitals address their cost and patient care challenges, while making it easier for them to do business with Unum. From training Unum employees on the challenges that hospitals face, to streamlining the services we offer, we are developing solutions to meet the unique needs of these health care customers.

“Hospitals want to work with carriers that have experience working with clients in the health care field,” Tiffany explained. “To ensure that we are meeting their needs, we are investing in training and knowledge management tools for our disability specialists and claims teams. These tools will help them gain a deeper knowledge of this industry and its unique requirements.”

Hospitals are “staffing sensitive” operations, and, due to employee demographics and work demands, they usually experience higher levels of employee absence. Couple this with the need to provide around-the-clock patient care, and it’s no surprise hospitals want to work with a carrier that can provide fast, effective claims management and support.

For our health care clients, Unum is now offering 24/7 intake and employer notification when a claim is filed. Regardless of the time of the day, within three to five minutes of receiving a claim request, an email is sent to the appropriate contact at the hospital notifying them of the claim and the employee’s absence.

“The goal of this offering is to help the hospital find a replacement as soon as possible by alerting them to the claim as quickly as we can,” Tiffany said.  Additionally, Unum is now involving a nurse case manager in all complex clinician claims. The nurse case manager will interact directly with the clinician claimant and work alongside the disability benefits specialist to help answer claimant questions and provide an additional layer of customer support.

“This added clinical support is a natural extension of our value proposition,” said Tiffany. “Hospitals aren’t just looking for vendors they’re looking for partners. And claimants that are clinically-trained are more comfortable talking to others who are well-versed in their diagnosis. It’s about providing a customer experience that demonstrates we understand not just the industry, but those who work in the industry.”
Many hospitals these days are interested in transitioning away from traditional sick bank models that allow employees to accrue up to 26 weeks in sick time to use for short-term leave.

“These models can be cumbersome to administer and costly for the employer,” said Tiffany. “They can create gaps for less-tenured employees and because they are not always administered consistently, they can also raise compliance issues for the hospital.”

The Health Care Practice Team is working on a consultative service that will help hospitals better understand the trends that influence their current and potential costs. Through this tailored and customized approach, Unum can provide a roadmap to help control these costs that are unique to a hospital’s workforce and culture.

The Team is also looking at ways to measure the impact of programs that help reduce lost time, such as return-to-work programs, health and productivity reporting and sick-bank program alternatives.
“We partner with our hospital customers in such unique ways to help them minimize costs and limit absences while still improving patient care,” said Tiffany. “So it’s important for us to be able to measure the value of the solutions we can provide.”

There are more things to come from this team. They continue to look at developing additional programs to address cost, quality and patient satisfaction for hospitals, with a focus on the aging workforce and nurse engagement and productivity. They are also looking for way to help support physicians, such as new plan design offerings and integrated support services.

Tuesday, September 4, 2012

Year after year, 3 + 3 still the key to benefits education

Unum’s annual study of American workers finds that enough time and the right tools are still the key ingredients to an effective benefits education.

“This is the fourth year we’ve conducted this study, and our research has consistently found that the key to an effective benefits education campaign is a three-plus-three communication strategy,” said Kelly McClusky, director of marketing communications at Unum. “Allowing employees at least three weeks to review information, and providing that information in at least three formats, adds up to a better benefits education and enrollment experience.”

A positive assessment of benefits education is strongly related to overall workplace satisfaction. The research shows that four in five (82%) employees who rated their benefits education highly also rated their employer as an excellent/very good place to work.

“When employers give their employees enough time and resources to learn about benefits, the payoff can be positive for both the employer and the employee,” McClusky said. “We consistently see that when employees experience an effective approach to benefits education, they also have higher levels of engagement, morale and loyalty.”

The study of more than 1,100 employed adults by Harris Interactive was completed following the 2011 benefits enrollment period.

To better meet the various learning styles among employees, the results indicate offering education materials in at least three formats is a critical part of the benefits education process.
According to the study, 90 percent of employees who were asked to review their benefits within the past year used the information made available to them. Printed materials, employer emails, personalized statements and employer intranets were among the most likely to be utilized:
  • 66 percent of employees used printed materials or brochures to learn more about their benefits when given the opportunity.
  • 59 percent of employees who had access to personal statements utilized them to get information about their benefits.
  • 58 percent of employees accessed information on their employer’s Intranet or from email communications from their employers when it was offered.
Unfortunately, the study also reveals that employee access to benefits resources has remained significantly lower than 2008 levels.

Equally important as offering employees the right amount of resources is giving them three weeks or more to review their benefits choices and information before making a decision.

Those who had three or more weeks to review benefits materials prior to the close of enrollment were significantly more likely to rate their benefits and their benefits education as excellent or very good, compared to those with less than three weeks to enroll.

The research shows that 96 percent of employees who had three-plus weeks to review their benefits education materials said it was enough time—but only 48 percent of respondents were given that much time.

An effective benefits education strategy can enhance employees’ appreciation of their benefits, the research shows. Eighty-one percent of employees with an excellent/very good benefits education rated their employee benefits package as excellent or very good. Conversely, only 27 percent of employees who rated their benefits education as fair/poor said their employee benefits package was excellent or very good.

Sunday, August 26, 2012

Understanding voluntary benefits needs - Unum's CMO David Leopold explains

There is a nice value equation for employers to offer voluntary benefits, says David Leopold, SVP and chief marketing officer at Unum. Watch as he shares a few key data points and which type of employee is actually buying voluntary products:


Tuesday, August 21, 2012

Moody's upgrades Unum's financial strength ratings

Moody’s Investor Service upgraded Unum’s financial strength ratings today, attributing the action to the company’s improved business diversification, financial flexibility and stable core earnings.

In a press release, the ratings agency said the upgrade reflects “the company’s leading market share in the group long-term and individual disability markets, and the company’s established position in the voluntary benefits market.

“The ratings also benefit from the company’s access to a huge claims database, focus on claims management and return-to-work programs, and its strong position in the group life market,” the press release said. Moody’s also cited Unum’s “good quality” investment portfolio, which has little exposure to subprime mortgages.

“This news is especially gratifying given the continuing uncertainty in the global economic environment and the negative outlooks ratings agencies have on our industry as a whole,” said CFO Rick McKenney in a letter to employees. “Over the last few years, we’ve seen a number of positive moves by these agencies reaffirming our operational performance and capital management strategies, and signaling our strong financial position to our customers and brokers.”

Tuesday, June 12, 2012

Unum research helps point the way to better benefits education, communication and enrollment strategies

Benefits communication is more of an art than a science, but new research suggests a tangible tipping point where employees finally begin to understand and appreciate their coverage, which can have a positive ripple effect on their outlook and willingness to go the extra mile for their employer.

A recent Unum survey of 1,147 working Americans who had been asked to review their employee benefits from a variety of providers in the past year reaffirms previous years' findings that link communications to employee satisfaction and loyalty.1 Those employees who rated their benefits education highly were more than twice as likely to agree that their employer cares about their well-being than those who found their benefits education lacking. 


Barbara Nash, Unum's VP of Corporate Research, continues to be impressed by just how strong the correlation between an effective benefits education and employee satisfaction with their workplace has been since Unum's annual survey was first conducted in 2008. 


"We also have consistently seen that it really matters that employees have enough time to review their benefits materials," she says, adding that the more tools made available in different formats to employees the sunnier their outlook will be about their benefits and employment.  But the trouble is that "there really hasn't been much improvement in how employees view their situation with their employers since 2009," Nash explains, noting a slow but steady decline in morale. "Right now, employees are not feeling the love," despite fewer layoffs and salary freezes within the past year.


The power of a 3+3 benefits communication strategy


This collective body of research, whose key findings have been consistent through the years, led Unum to recommend a compelling "3+3" communication strategy featuring at least three weeks of benefits communication before annual enrollment and three methods of learning – hence, the numerical description. When these approaches are fused together, Nash says "that's when employees say they really understand their benefits and feel comfortable in their decision-making."  The fact is that people learn in different ways. Some are more visual, while others prefer to hear information explained or use interactive tools, according to Nash.


Value of voluntary benefits


One way employers can design a more competitive benefits package, especially during austere times, is through voluntary plans whose wide variety of products and coverage options appeal to an increasingly diverse workforce. Accident and critical illness insurance are examples of benefits that can help ease any financial impact of medical coverage gaps, including (but not limited to) employees who pay higher out-of-pocket costs for their health care. Employees who are offered voluntary benefits are more likely to indicate strong satisfaction with their benefits package than those who are not offered voluntary benefits (56% vs. 38%).


Nash says "the nice thing about voluntary benefits is that it allows employers to provide more options to their employees" without having to pick up some, or all, of the cost. And unlike employer-subsidized coverage, HR needn't be concerned about negative reactions among employees that can occur if a benefit is discontinued due to budget tightening. There's also the issue of portability: Employees who leave for another employer can always take those benefits with them.

However, employers are not always in synch with what employees value in voluntary benefits. For example, employees believe that critical illness insurance is as important as life and disability insurance, but only 19% of employees who had access to voluntary benefits said that their employer offered critical illness insurance as an option.

Among the top reasons employees selected for purchasing a new voluntary benefit offering:
  • 41% cited the convenience of payroll deduction
  • 33% said it's cheaper to buy through the workplace than on their own
  • 28% said they felt more financially secure
  • 22% thought their employer made a compelling case for purchasing such coverage
  • 22% felt the benefits cost less than they expected; and
  • 18% cited portability if they should change jobs.
Courting younger workers


The findings suggest that it's critical for employers to take benefits education more seriously, especially with younger generations for whom the information can be so new and difficult to understand.   Despite being known as an Internet-savvy group, Nash says members of Gen X and Gen Y are not heading to the Web to seek out more information about benefits. "If anything," she explains, "younger workers are going to turn to their friends and family members to help them if they need more information than what they get from their employer."

The danger, of course, is that they may not fully understand or appreciate their benefits unless the employer implements a benefits communication and education effort that provides employees sufficient time and tools to effectively make good benefits choices.


To learn more, visit unum.com/education.

Wednesday, May 30, 2012

Unum releases 2012 Corporate Citizenship Report

Every day Unum employees make a difference through their efforts to meet customer needs, create a strong corporate culture and support their communities. In this year’s Corporate Citizenship Report you will find stories that show how our company and employees live these commitments.

“We are very fortunate as a company to be in a strong financial position, and our good fortune helps propel our efforts as a good corporate citizen and neighbor,” writes CEO Tom Watjen in the report’s opening letter.

Below are three “difference makers” at Unum featured in the report:
  • Krista Workman, a disability benefits specialist in Columbia, is committed to help her customers through difficult times. “Each day I strive to find ways to better provide protection to our customers in times of need,” she said.
  • Senior Account Manager Nicola Sisk in Chattanooga understands firsthand how Unum’s caring culture supports both its customers and employees. “It wasn’t until my husband was faced with a potentially fatal bone marrow disease that I truly understood that Unum was such a special place,” she said.
  • And Corporate Volunteer of the Year Eamonn Lawler, a programmer analyst in Carlow, Ireland, lives his commitment to serve others by giving back. “Working here, if you need a hand, there is always someone willing to help out, to give their time or donate supplies or money,” he said.
The report also covers Unum’s community giving. In 2011, Unum contributed more than $12 million to charitable organizations in the U.S. and U.K.

Feel free to, click here to view a PDF of this year’s report.

Tuesday, May 22, 2012

Our people, training key to high customer satisfaction

It was recently reported that Unum’s disability claims practices earned strong customer satisfaction, scoring significantly higher ratings than the industry average for its long term disability claims process in a survey conducted by Gen Re.

In fact, customers gave Unum significantly higher ratings than the industry average for 20 out of 26 measures for our long term disability claims process, including the overall handling of the claim.

Diane Garofalo, senior vice president of Unum’s Benefits Center, said the company consistently and continually seeks customer feedback through satisfaction surveys like this one. “We take this feedback seriously. The findings allow us to continue to review and adjust our claim processes and to enhance the quality of our customer interactions to ensure industry leading service,” she added.

So what sets our LTD claims process apart from the rest of the industry?

According to Greg Breter, vice president of LTD Regional & Special Benefits Operations, our strong LTD customer satisfaction is directly connected to our Vision Statement and commitment to being the absolute best at building meaningful and lasting connections between employers, their employees and the benefits Unum provides. He cited other factors too, including:
  • Hiring effective communicators who demonstrate strong interpersonal skills.
  • Investing in initiatives like the Consumerism and Hispanic Initiatives that help us create clearer and more understandable communications/letters.
  • Having a customer focused claims process that ensures a high level of service with a personal touch.
  • Building a strong relationship and sense of trust with each customer throughout the duration of each claim.
But Greg pointed to one program in particular that he feels clearly sets us apart: the Building Claimant Connections training program for our claims specialists.

“It is very important that our claims specialists understand that a disability can create emotional, physical and financial challenges for our customers,” said Greg. “So we teach them how to communicate each claims decision with care and sensitivity, which is crucial to developing strong and trusting relationships with customers.”

This program focuses on the following key components: Enhancing listening skills and improving information gathering; taking time to develop relationships with customers; helping customers determine what is important to them; assisting customers in seeing what is possible and what they are able to accomplish and helping them achieve desired goals.

“It starts with the training, but it really ends with our employees,” said Greg. “They do a wonderful job helping our customers in their time of need, and these survey results show that.”

Tuesday, May 15, 2012

Unum recognized by Forbes, Fortune

For the second year in a row, Unum has been named to the Forbes list of 150 Most Reputable Companies.

The annual survey, conducted in partnership with the Reputation Institute, assesses strengths of the 600 largest companies in the categories of: products and services, innovation, workplace, governance, citizenship, financial performance and leadership.

Unum is ranked 98th on the list, up from its spot at 112 last year. The list also includes companies such as General Mills, Disney, Aflac and Google.

The company was also included in Fortune magazine’s Fortune 500 – an annual ranking of the largest corporations in the United States, ranked by revenue for the 2011 fiscal year. All U.S.-based public and private companies that file all, or parts of, their financial results with a government agency are eligible for the list.

Unum is ranked 260 on the list, down from its 239 spot on last year’s list and alongside well-known companies such as Whole Foods, Ameriprise Financial, SunTrust Bank and Visa. Exxon Mobil tops the Fortune 500, leapfrogging last year’s top company Wal-Mart.

In the life and health insurance (stock) industry, Unum ranks sixth ahead of Reinsurance Group of America, Principal Financial, Mutual of Omaha Insurance and Pacific Life. MetLife tops the industry list as 34th on the Fortune 500, followed by Prudential Financial (55th), Aflac (128th), Lincoln National (247th) and Genworth Financial (258th).

In Forbes’ list of the Global 2000 largest publicly traded companies, released last month, Unum comes in at 914th on the list and 23rd in the life and health insurance industry. ING Group, based in the Netherlands, tops the industry and ranks 39th on the list.

Unlike the Fortune 500, the Forbes list equally weights sales, profits, assets and market capitalization to rank companies according to size. Exxon Mobil is ranked first on the Global 2000 list, while Royal Dutch Shell of the Netherlands at 4th is the largest non-U.S.-based company. HSBC Holdings, at 6th, is the largest company in the U.K.

Sunday, May 13, 2012

Why Devote a Month to Disability Insurance Awareness?

Your most important asset is not your home, your car, your jewelry or other possessions. It’s your ability to earn a living. Think about it: All of your plans for the future—from buying a home, to putting your kids through college, to building a retirement nest egg—are based on the assumption you’ll continue to earn a paycheck until you retire. But what would happen if those paychecks stopped? That’s where disability insurance comes in. It provides an income to you and your family if you are unable to work because of illness or injury.

Though disability is behind a significant number of home foreclosures and personal bankruptcies, insuring against it has not been a high priority for most workers because many assume they’re already covered through Social Security, state-mandated Workers’ Compensation or employer-provided group plans. However, there are numerous holes in this safety net of coverage.

Know that about 45% of those who initially apply for disability benefits through Social Security are initially denied, and those who are approved get an average benefit of just $1,063 monthly—hardly enough to replace the average worker’s income. Workers’ Compensation covers only work-related disabilities, but according to the National Safety Council, 73% of disabling accidents and illnesses aren’t work-related. And what about coverage through work? It’s a great employee benefit, but it’s not available to many workers. According to the U.S. Department of Labor, more than 70% of employers do not offer long-term disability coverage.

So what’s a worker to do? Explore your options and learn more about disability insurance. If your employer offers disability coverage, take the time to find out if the coverage would be sufficient to meet your income replacement needs in the event of a disabling illness or accident. If it’s insufficient, your employer may offer you the option to increase your disability benefit, often through a voluntary payroll deduction. Another option is to purchase coverage on your own.

May is Disability Insurance Awareness Month (DIAM), the perfect time for a disability insurance “reality check.” Take this opportunity to make sure you and your clients are OK financially in the event that a disability keeps you out of work for an extended period of time.

Monday, May 7, 2012

Cancer, pregnancy continue to lead disability causes

Continuing a trend that has held for more than a decade, cancer, pregnancy and back disorders were the top causes of disability claims for Unum in 2011.

New research from Unum and the Consumer Federation of America reveals, however, that most employees think injuries cause the most missed work, pointing to a fundamental misunderstanding of what events are most likely to lead to disability.

The survey polled a nationally representative sample of nearly 1,200 employees about group disability insurance. It revealed that employees also are far more likely to believe that injuries (66 percent), rather than illnesses (34 percent), cause the majority of disabilities that keep employees from work for at least three months.

According to the Council for Disability Awareness, 90 percent of all disability claims paid are for common illnesses and health conditions. Unum’s data also reflect that reality. In 2011, injuries prompted only 10 percent of Unum’s long term disability claims and 11 percent of short term disability claims.

In 2011, Unum’s leading causes of long term disability claims were:
  • Cancer (15 percent)
  • Back disorders (excluding injury) (14.6 percent)
  • Injuries (10.4 percent)
  • Mental disorders (10.1 percent)
  • Circulatory system disorders (9.3 percent)
  • Joint disorders (8.5 percent)
The leading causes of short term disability were:
  • Normal pregnancy (18.9 percent)
  • Injuries (10.9 percent)
  • Complications from pregnancy (8.8 percent)
  • Digestive disorders (8 percent)
  • Back disorders (7 percent)
  • Cancer (6.6 percent)
During May, which is Disability Insurance Awareness Month, Unum will share information about our research, claims trends and highlight stories of customers who have relied on disability benefits to protect their financial stability.

Tuesday, May 1, 2012

Did you know there is an easier way to help your clients manage leave?

More employers are recognizing that a leave management program that integrates short term disability with federal, state and corporate leave can be a key to controlling the cost of absences and increasing productivity at the workplace.

Tracking absences can save money and increase productivity.  Uncoordinated leave management can be costly to the bottom line.  For a large company, it can cost millions per year.

More than one million employees are now covered by Unum’s Leave Management Services as more businesses seek ways to manage complex leave laws while balancing costs and productivity.

Learn more about Unum’s leave management services from the article below and see how unmanaged leave can impact your clients… both large and small.

Unum FML Article

Monday, April 23, 2012

Unum earns high marks for customer satisfaction

Unum’s commitment to customer service helped the company achieve strong results in overall claims handling for short term and long term disability claims, according to new industry research. Results reveal that approximately 88 percent of short term disability customers and 91 percent of long term disability customers surveyed are “very satisfied” or “satisfied” with the overall handling of their Unum claim.

Every two years, Unum participates in research conducted by Gen Re, a leader in reinsurance, consulting and research. The research measures satisfaction levels for the short term disability and long term disability claim experiences. We use the results to refine and enhance our Benefits Center procedures and services.

“We’ve promised to provide exceptional customer service to those who turn to us for financial support when they’re hurt or sick,” said Diane Garofalo, senior vice president of the Benefits Center. “These results are verification that our claims employees are dedicated to that commitment, which is great news for our customers.”

Customers gave Unum significantly higher ratings than the industry average for 20 out of 26 measures for its long term disability claims process, including:
  • Overall handling of long term disability claim
  • Timeliness of claim decision
  • Timeliness of receiving first payment
  • Ease of our claims process and the Unum’s prompt and professional handling of the claim
For short term disability, Unum was in line with the industry average in key performance categories, including:
  • Clear explanation of the process
  • Ease of telephonic filing
  • Courteous and respectful contact when customers call Unum
Diane also touted the findings of a recent independent study on Unum’s performance in managing the individual disability claim experience. The results reveal some of the highest satisfaction scores in the history of this research program, which was first conducted in 2005.

“While there’s always room for improvement, these are great results,” Diane said. “Our organization should be extremely proud of the way our benefit employees represent our brand.”

For 35 consecutive years, Unum has been the leader in the group disability market in the United States. In 2011, Unum received more than 367,000 new disability claims and paid $5.4 billion in financial protection benefits.

Sunday, April 15, 2012

Why Is Critical Illness Insurance So Darn Hot?

A lackadaisical economy. Ever-rising healthcare costs. Health care reform … maybe.

These and other factors are contributing to a sense of financial unease for businesses. Higher-deductible health plans can help employers control costs, but they leave employees at increased financial risk.

Most Americans don’t have much in savings to help cushion their wallets from the impact of a major health issue. And nearly two-thirds of U.S. bankruptcies are the result of medical expenses, according to the American Association for Critical Illness Insurance (AACII), Westlake Village, Calif.

Combining voluntary benefits with high-deductible health plans is an effective way for employers to provide employees more coverage. Brokers and employers recognize that critical illness coverage, in particular, is the perfect complement to high deductible health plans, higher co-pays and Health Savings Accounts (HSAs).

The market for critical illness insurance is showing consistent, significant growth. In 2010 Eastbridge Consulting reported that sales of critical illness have doubled since 2007. And as a leading provider of critical illness insurance, Unum has experienced 20% growth each of the past four years. AACII estimates that about 1 million Americans are covered by a critical illness policy.

Sales and claims information from my company, Unum, can help shed light on the product’s growth and how consumers are using critical illness insurance.

Understanding the need and the coverage

Even with medical coverage, out-of-pocket costs for serious health conditions can be high. In a study by Duke University Medical Center and Dana-Farber Cancer Institute of cancer patients, 30% of respondents said their expenses were a "significant burden" and 11% described them as a "catastrophic problem." These are the kinds of concerns critical illness coverage is designed to mitigate.

In the past five years, Unum has approved more than 6,000 critical illness claims and paid about $70 million in critical illness benefits.

Cancer is the top condition cited, affecting 55% of Unum’s critical illness claims. Heart-related claims are second, involving 28% of claims. Yet, the leading condition differs by gender. Women are more likely to file cancer claims, while men are more likely to file heart-related claims.

Many critical illness policies have a wellness benefit that helps pay for covered health screenings such as a colonoscopy, Pap smear or mammogram. In the past 12 months, Unum has seen an increase of 5% to 10% in use of the wellness benefit. This benefit is an excellent way to encourage employees to take proactive steps toward prevention and early detection. The benefit pays a set payout per calendar year per insured individual if a covered health screening is performed.

Critical Illness Payouts

Critical illness insurance offers a lump sum payment at the diagnosis of a covered illness which can be used for any purpose. Policies typically pay 100% of the benefit amount for heart attack, stroke, major organ failure, permanent paralysis due to accident and end-stage kidney failure and cancer. Some of the newer critical illness plans also can pay abenefit for such conditions as coma as the result of a brain injury, blindness, benign brain tumor, and occupational HIV.  Dependent coverage is typically available. And critical illness policies pay in addition to any existing health, disability or life insurance coverage.
The market seems to have shifted more to group-based critical illness products over the last five years.  Advantages of group critical illness coverage are that it allows for more flexible funding options and it simplifies benefit education and implementation for employers with employees in multiple states.

Group plans may include portability features similar to typical individual plans, so that even if the employer drops the plan, employees can continue their coverage.

Keeping employees engaged

Unum research shows that employees value critical illness and other voluntary coverages. More specifically, it shows an 18-point improvement in employee satisfaction with their benefits package when working for employers that offer voluntary plans compared to employers offering no voluntary benefits – even when employees pay for them. And, according to a 2012 Unum survey on employee education and enrollment, when it comes to comparing employee satisfaction with the employer, there is a nine-point advantage for employers offering voluntary benefits. Studies have also shown that workplace satisfaction is a key driver of employee engagement.

Critical illness insurance is a product designed to meet the needs of employees facing significant out-of-pocket costs due to a serious illness. Further, it blends well with health care plans to provide employees with a more complete benefit package while not adding to employers’ benefit costs.

Critical Illness Insurance: What to look for

A number of insurance providers offer critical illness plans with an array of features and benefits. Here are some ideas to keep in mind when you're helping consumers compare plans:
  • Select policies that are HSA compatible, which best complements high-deductible health plans.
  • Some plans pay on a simplified lump sum basis rather than a more complex expense reimbursement arrangement. This saves consumers from having to collect and maintain receipts for medically-related expenses.
  • Seek providers that offer automated guarantee issue enrollment for spouses, which helps to simplify the overall enrollment experience for families.
  • To better match health care coverage, look for policies that cover dependent children to age 26.
  • To help encourage employees to become smart health care consumers, make sure critical illness plans include a wellness benefit for health screenings.
  • Look for a carrier that offers a broad portfolio of coverages that work seamlessly together and offer portability at the same rate if an employer terminates the plan with no replacement coverage offered.

Monday, April 9, 2012

New VB packages simplify sales and enrollment

Sometimes, it’s simplicity that sells. Particularly for the voluntary benefits market, the easier we make the sale, enrollment and administration of our products, the better.

This is especially important for brokers who are new to voluntary, see the importance of the coverage in a comprehensive financial protection package, but may have the perception that voluntary benefits are complicated.

Recognizing an opportunity to overcome these perceptions, Unum has launched a new, simplified sales and enrollment approach for some of our most popular voluntary products. This new approach provides the broker with everything needed to position, sell and enroll interest sensitive whole life, individual short term disability, individual accident and group critical illness.

Unum’s broker-enrolled solutions provides two offerings called Unum Essential VB for cases of 25-250 lives and Unum Essential VB Plus for those of more than 250 lives, these new packages include:
  • Marketing material to support the broker in the sale of the voluntary benefits offering
  • Employee education to aid in employees’ benefits decisions
  • Pre-filled paper election form or online enrollment options that reduce errors and time
  • Self-enroll capability offers a next step to customer-preferred group meetings
  • No broker signature required saves the broker time
  • Personalized enrollment kit provides all the communication tools and forms=
This approach enables brokers and employers to offer voluntary benefits in much the same way as traditional group benefits by utilizing group meetings and a personalized, prefilled enrollment form that lets employees self-enroll.

The launch of Unum’s broker-enrolled solutions follows closely on the heels of the introduction of the new voluntary group accident product and enhanced group critical illness coverage. All reinforce Unum’s leadership in the voluntary benefits market and commitment to providing innovative solutions to our customers.

Thursday, April 5, 2012

Watjen touts Unum’s recent performance on CNBC

The two major challenges facing the insurance industry right now are a continued high unemployment rate coupled with low interest rates, CEO Tom Watjen said on CNBC this morning.

“We’re (Unum) doing pretty well despite that,” Watjen said on CNBC’s “Squawk Box,” adding that the company adjusted to the down market by restructuring its investment portfolio, raising capital and focusing on markets thought to be more sustainable.

“I think that put us in a good position when the economic crisis hit,” he added.

While low interest rates do impact Unum, the way the company is structured helps lessen the impact the low rates could have.

“The products we sell have a very long duration so we buy basically fixed income securities. Sixty percent of our portfolio is corporate investment grade bonds. Since we have a very staggered maturity schedule, we can plan pretty well how we forecast interest rates into our pricing,” Watjen explained. “We’ve had to bring those rates down, but we can bring them down in a very thoughtful, mindful way over a period of time as opposed to having to deal with any one particular week or quarter.”

High unemployment rates also affect Unum’s business, since part of the way we grow is through existing customers growing their businesses by adding employees and increasing their wage and benefits package, he said.

During the interview, Watjen also discussed his recent testimony in front of a Senate committee last month and how the public and private sector need to work together to expand disability coverage to ease the burden on government public assistance programs.

A recent study commissioned by Unum and conducted by Charles River Associates found that private, employer-sponsored disability insurance saves taxpayers up to $4.5 billion per year and helps keep as many as 575,000 families from using public assistance, such as food stamps.

“Sixty percent of individuals live paycheck to paycheck today and that doesn’t put you in a really good position if you have an issue that causes you to be out of work and unable to earn income,” Watjen said.

Monday, April 2, 2012

Watjen testifies before Senate committee last week

CEO Tom Watjen spoke at a Senate committee meeting last week, stressing the importance of income protection benefits and the need for the private disability insurance industry and the government to work together to expand coverage.

The hearing, entitled “Stay-at-work and return-to-work: Lessons from the private sector,” focused on how the private sector supports employees through disability insurance, employment modifications, and workplace accommodations, among other services. Click here to view a taped broadcast of the hearing.

“The ability to earn a living is the most important asset people have, and protecting that asset benefits individuals, families, businesses and taxpayers,” Watjen told the committee at a hearing March 22.

“Our experience is that the lack of awareness of the risk of disability and the affordable ways to insure against the risk are the biggest impediments to more Americans being protected,” he added. “That is why this hearing is so important.”

A worker is three times more likely to become disabled than to die before retirement, yet is much more likely to have life insurance than income protection insurance. About 70 percent of private sector employees lack long term disability coverage, Watjen said.

Disability benefits can provide the support and resources needed when an employee is sidelined by injury or illness, he said, adding that the benefits extend to taxpayers and the government as well, by relieving the burden on public assistance programs.

Last year, Unum commissioned a study by Charles River Associates to assess the value of employee benefits with a specific focus on disability protection provided in the workplace. The study found that private, employer-sponsored disability insurance saves taxpayers up to $4.5 billion dollars per year and helps as many as 575,000 families avoid impoverishment and the need to rely on public assistance programs.

In fact, the Charles River report suggests that poverty among working adults who become disabled during their careers could be virtually eliminated if all workers had some form of standard employer-sponsored disability insurance.

For that reason, the private income protection insurance industry and the government should work together on the shared objective of making financial protection more accessible and affordable to workers, Watjen told committee members.

“Government can play an important role by helping to raise awareness with consumers, employers, and others about the risks and consequences of disability.”

Thursday, March 22, 2012

Unum's new simplified voluntary benefits enrollment strategy for sales partners

Unum's new simplified voluntary benefits enrollment strategy for sales partners: It's time to offer your clients important voluntary benefits and a streamlined enrollment approach that will help you serve your customers and build your business. Working with Unum, you now have a way to crack the code in the voluntary benefits market!

http://my.brainshark.com/Unums-new-simplified-voluntary-benefits-enrollment-strategy-for-sales-partners-709444925

Tuesday, March 20, 2012

A.M. Best affirms Unum’s rating standings

A.M. Best has affirmed Unum’s financial strength rating and stable ratings outlook, basing its decision on the company’s strong capitalization, good profitability and favorable operating trends in the face of a weakened economic environment.

“Unum’s core business lines are generating strong earnings and cash flows, with returns exceeding industry medians,” A.M. Best said in a press release. “Moreover, A.M. Best believes capital is being deployed in an efficient and prudent manner,” while maintaining sound risk-adjusted capital ratios. A.M. Best also referenced the company’s persistency, “reflecting the group’s ability to retain quality business.”

The ratings agency also commended Unum for its financial flexibility and for the modest exposure the company’s investment portfolio has to structured securities and real estate-related investments.

Monday, March 12, 2012

Workers now place more value on benefits

Adding voluntary plans can increase employee satisfaction...

Independent research shows that employees’ perception of the value of their benefits continues to be at a high level. The majority of employees say benefits are important to job satisfaction.  Our research, too, shows employees continue to value life, accident, and critical illness insurance, short and long term disability coverage since first surveyed for our 2008 report.  And, benefit package satisfaction rates of those not offered voluntary benefits continued to be lower than for those that did. That’s valuable to employers, since this 100% employee-paid coverage allows a company to offer more benefits and add perceived value to a plan without impacting the bottom line.

In today’s budget-conscious times, voluntary benefits are becoming “must-haves” in a competitive benefits package.  And they offer a variety of choices in coverage that appeal to today’s diverse and versatile workforce.

Voluntary coverage provides an important safety net to employees who are vulnerable to rising health care costs.  Accident and critical illness insurance can help offset the financial impact of expensive out-of-pocket costs not covered by health insurance.  And Unum research shows that employees place a high value on these benefits when they
are effectively communicated, even though they pay the premium.

The message is clear: employees are placing more value on benefits in general — even when they have to pay for them. And today’s group and voluntary benefits make it easy to add coverages at little or no cost to the company. This strategy can result in higher workplace satisfaction, reduced turnover and increased productivity.

Please contact me to learn more.  I can also provide you with a copy of Unum's recent industry study - Beyond the Usual Benefits: 2012 - The power of employee education to influence workplace satisfaction.

Friday, March 9, 2012

Strategies for expanding your reach in voluntary benefits

Voluntary benefits have been a growing trend for almost 15 years. Recent surveys show employee-paid benefits are on the minds of brokers, employers and the workforce alike. According to a 2011 study by LIMRA, 30% of U.S. employers are considering adding a voluntary benefit to replace employer-paid and contributory benefits within the next two years - affecting between 19 million and 45 million employees. These numbers aren't surprising. Even with slight improvement in the U.S. unemployment rate, employers have responded to the poor economy and rising health care costs by making the tough decision to shift the costs of certain benefits to their employees.


As a producer, this challenging climate provides you with a tremendous opportunity to guide the transition from employer-funded benefits to a more consumer-centric approach. The benefits managers you partner with will see the value in reducing their benefits costs. Their employees will appreciate the ease of worksite enrollment for products that provide fundamental lifestyle protection.


Helping an employer transition from employer-paid to voluntary benefits requires an approach that's consultative and product savvy, which finds ways to ease the administrative burden on the employer and educate the person ultimately making the purchase - the employee.


Consider these questions
Since you'll be meeting the needs of various employer and employee audiences, it goes without saying that a one-size-fits-all voluntary strategy isn't recommended. Instead, it involves a careful assessment of your book of business to determine where you will have the best opportunities:


* How many of your accounts are considering reducing benefits packages?


* Are your clients' benefit plans competitive with the industry? To make their benefits package more robust, are they open to offering voluntary benefits?


* Has your client evaluated their entire benefits package holistically? A well-rounded benefit program should include the basics, such as life, disability and medical gap coverage that complement any employer-funded coverage.


Once you've targeted the right types of employers, the next step is careful planning with their benefits teams to ensure successful implementation and communication strategies. From there, a successful voluntary benefits program is ultimately defined by strong employee participation in the benefits being offered.


On an industry level, we tend to measure baseline success when at least 35% of employees in a given enrollment cycle chose to sign up for benefits. Drivers of successful participation include:


* Targeted education campaigns- Your carrier should work with you to determine which segments of the employee population are the best targets for voluntary benefits. This analysis can be backed by a marketing campaign that includes dynamic educational tools accessible via email or intranet and supporting testimonials that affirm the buying decision.


* Communications- Discuss with your employer enrollment communications that give you access to employees via techniques such as group meetings, benefit fairs, and lunch and learns. This is especially important with employers that are geographically diverse or employ a range of shifts in multiple job bands.


* Simple and flexible enrollment- Be sure to explore whether paper or online enrollment best meets the employees' needs. Keep in mind specific groups, such as those who work remotely.
Market trends all point to voluntary benefits as a strong choice for brokers who are interested in growing their book of business.


This is an article recently published by employee benefit adviser.

Monday, February 27, 2012

Put critical illness coverage at the heart of your financial protection

Did you know that heart-related conditions account for almost 30 percent of
Unum’s critical illness claims???

CHATTANOOGA, Tenn. (Feb. 17, 2012) - Treatment of cardiovascular diseases accounts for about one of every 6 dollars spent on health care in the United States, according to the Centers for Disease Control. American Heart Month in February is a perfect time to prepare ahead with financial protection against a critical illness, such as a heart attack, stroke or bypass surgery.

“Recovering from a critical illness, such as a heart attack or stroke, can carry some pretty expensive medical expenses, but non-medical expenses can also quickly add up,” said Mary Ann Beliveau, assistant vice president, Product and Market Development at Unum. “Benefits from critical illness insurance can provide financial support so an individual can concentrate on getting better instead of paying the bills.”

Critical illness insurance pays a lump sum benefit directly to insured people diagnosed with a covered illness. Individuals can use the benefit any way they see fit, for medical or non-medical expenses such as paying bills, groceries and even child care.

Without adequate protection, people who suffer a heart attack or stroke might have to use their savings or rely on family, friends or credit to cover their expenses. According to the American Association for Critical Illness Insurance nearly two-thirds of U.S. bankruptcies are the result of medical expenses. Even more troubling, 78 percent of those filing for bankruptcy had health insurance when they were first diagnosed. 

Unum, a leading provider of critical illness insurance, says heart-related incidences account for almost 30 percent of its critical illness claims. Heart conditions are second to cancer, which accounts for more than half of the company’s critical illness claims.

“A critical illness, even covered by the most generous medical plans, can leave an individual with a stack of bills and other financial commitments,” Beliveau said. “The benefits of critical illness coverage can go a long way in helping to ease these financial worries.”



About Unum
Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum Group paid approximately $6 billion in total benefits to customers in 2010.

Wednesday, January 25, 2012

New information site brings health care reform into focus

Unum launches learning center to help brokers and employers keep up with changes

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum (NYSE:UNM) has launched a website on health care reform to help benefits professionals and businesses stay up to date on the changes and their effects. The site offers straightforward information and analysis through updates to health care reform law, reports and podcasts.

“New health coverage requirements will significantly impact the way our sales partners and customers do business,” said Jim Hettenbach, director of market development for Unum. “Our online learning center will stay current on the law, offering up-to-date material that will change as the situation changes. This will be a valuable resource to help brokers and businesses understand the opportunities and their responsibilities in the changing landscape.”

Although Unum’s benefits offerings – such as disability, accident, critical illness and supplemental health coverage – will not be directly impacted by the new regulations, the company has taken a leading role in helping the employee benefits industry evaluate the full effects of health care reform.
“Our products complement health insurance coverage, offering working Americans more complete financial protection against the impact of illness or injury,” Hettenbach said. “As our customers have shared their anxieties about health care reform, we’ve stepped in to provide as much information and perspective as possible.”

The launch of an online tool that will be regularly updated enables Unum to keep information current. In addition to being a source for health care reform news and material, the site also has information on benefits that can help employers learn how to build reform-friendly benefits strategies.

“Disability, accident and critical illness insurance provide billions of dollars in benefits each year to wage-earners who are sidelined because of illness or injury,” said Hettenbach. “In this new reform environment, there is an even greater need to educate employers and employees about the importance of financial protection benefits and how they can be used to help fill gaps in coverage that medical insurance does not address.”

To learn more about health care reform and its impact on today’s employers, their workers and the benefits industry, visit Unum.com/HealthCareReform.

Monday, January 16, 2012

Customers give us high marks in annual survey

Unum’s commitment to being the absolute best at making meaningful and lasting connections with its customers is reflected in impressive results from the 2011 Employer Loyalty Study. Based on a survey of group customers with 11 to 1,999 employees, the research measured client satisfaction with Unum across dozens of categories.
If this were a school report card, Unum received A’s (score above 92%) for:


• Overall quality
• Overall value
• Likelihood to recommend
• Likelihood to renew
• Financial strength
• High quality products and services
• The claims process.

In addition, 92 percent of customers surveyed agreed that Unum had a positive corporate reputation and provided a thorough, fair and objective evaluation of all claims.


“These are strong results and reflect many year-over-year improvements,” said Lori Cook, a director in Corporate Research. “Image ratings increased significantly in a number of areas, including corporate reputation, trust and evaluation of claims.”


Unum also enjoyed a significant jump in customer ratings of financial strength. The company has had a consistent string of solid quarterly financial results in the face of a challenging economy and aggressive competition.
The Employer Loyalty Study is conducted each fall. In 2011, Harris Interactive Inc. surveyed 1,340 benefits decision-makers.

Monday, January 9, 2012

Looking into the crystal ball at 2012

We can predict one thing: Market for voluntary benefits will continue to grow



The events of the last few years have certainly complicated the business of predicting what lies ahead for the benefits industry. As they try and call the trends for 2012, experts are keeping a close eye on the economy (in both the U.S. and Europe), employment levels, health care reform and the evolving role of voluntary benefits.
Oh, and it’s an election year. Hang onto your hats.



The uncertain economy
The economic outlook for the new year is slightly brighter overall in the U.S., with a recent drop in unemployment numbers and some growth in manufacturing and construction. But it also seems that for every bit of good economic news there’s a bit of bad news. Housing prices are still depressed, and an unfolding European economic crisis could affect conditions across the globe.



The moving target known as health care reform
Even after an eventful year for health care reform in 2011 (the CLASS Act didn’t make it, but the insured-until-26 provision took effect) a lot remains unknown. Court decisions came down against the individual mandate as well as for it. And in the spring, the Supreme Court is expected to hear arguments on the issue.
Unum launched a health care reform information site to help keep everyone up to date. But it’s a big job. Lots of questions, including those about how exchanges will work and the role of brokers in the whole equation remain unanswered. And it’s still not clear how employers will respond to reform, with some experts predicting many will drop health care coverage for employees while others predict they’ll have compelling reasons to continue to offer it.



The voluntary world
The new year is bringing a lot of discussion about where voluntary benefits will fit in as medical costs rise and employers look for creative ways to tighten benefits budgets while offering employees the benefits they want and need.
Strong growth in voluntary benefits is among the top trends for 2012 Colonial Life recently predicted, and some brokers who are weighing in on what they expect from the New Year see voluntary benefits playing a growing role in their plans.



Contact me and let's discuss how we can make this new and changing environment a great opportunity for you to navigate your clients through challenging times.



- Rich Canale