Australia’s system of superannuation has wide coverage but often provides an inadequate level of retirement income. I have written an aricle for the UK Actuary Magazine calling for government, regulators and the pension industry to work together to improve the situation
- See more at: http://www.theactuary.com/features/2014/07/can-the-tide-turn-for-oz-pensions/#sthash.2tRj31vl.dpuf
ISCEBS 2014 Presentation: Health Care Reform’s Impact on Disability ManagementSpring Consulting Group
Recently, Spring Consultants Karen English and Kimberly Mashburn presented at the annual ISCEBS conference. They explore how Disability Management has been impacted by recent US health care changes brought on by the implementation of the Affordable Care Act (ACA)
Australia’s system of superannuation has wide coverage but often provides an inadequate level of retirement income. I have written an aricle for the UK Actuary Magazine calling for government, regulators and the pension industry to work together to improve the situation
- See more at: http://www.theactuary.com/features/2014/07/can-the-tide-turn-for-oz-pensions/#sthash.2tRj31vl.dpuf
ISCEBS 2014 Presentation: Health Care Reform’s Impact on Disability ManagementSpring Consulting Group
Recently, Spring Consultants Karen English and Kimberly Mashburn presented at the annual ISCEBS conference. They explore how Disability Management has been impacted by recent US health care changes brought on by the implementation of the Affordable Care Act (ACA)
Is your organization unintentionally shortchanging the key executives it counts on most? Many companies—and their executives—are surprised to learn that the disability and retirement plans of top leadership fall short in comparison to the plans of other employees within the organization.
The Institute of Medicine's report, Unequal Treatment: Confronting Racial/Ethnic Disparities in Health Care, cited more than 175 studies documenting diagnostic and treatment disparities of various conditions among racial/ethnic populations, even when confounding factors (e.g., insurance and socioeconomic status, comorbidities, age, healthcare venue, stage of diseases) were controlled for in analyses.Specific examples include higher rates of hypertension, diabetes, breast cancer, cervical cancer, colon cancer, and cardiovascular diseases in African Americans; diabetes in Native Americans, Alaskan Natives, and Latino populations; and heart disease mortality in certain Asian American, Latino or Hispanic, and Native American groups.Lower rates of immunization and higher rates of infant mortality have been reported in African American, Hispanic, and Native American populations.
Across the United States, a legislative movement to mandate paid sick leave time for all employees has picked up significant momentum over the past couple of years. With a number of states, municipalities and even the President advocating for these new mandates, it is important that employers know how these changes impact them.
At a recent Disability Management Employer Coalition event, Spring partner Teri Weber gave the presentation below on paid sick leave laws with fellow industry experts Geoffrey Simpson from Presagia and Mike Soltis from jackson lewis.
We hope you find this deck helpful and please don’t hesitate to reach out to Teri using the form below with any questions about paid sick leave laws or anything related to leave management.
Significant cost increases. Decreasing benefits. Lack of control. If this is your employee benefits story, then we invite you to consider alternative ways to fund your benefits program.
Captives bring a slew of benefits, including more control, long-term cost savings, and the potential to earn dividends. Most importantly, it puts you in charge of your benefits program's performance.
Shawn Lanter from Berkley Accident and Health digs into what a captive is, why they exist, and how they could work for you.
The Pros and Cons of Self-Insured vs. Fully Insuredbenefitexpress
This webinar reviews which factors and employer should consider in self-insuring and full benefits. It will discuss the legal, administrative, and ee issues.
This presentation is designed to provide the information needed to understand self-funding, assist you in explaining the solution to clients and then determine whether it is right for their company by comparing and contrasting it to a fully insured solution.
Is your organization unintentionally shortchanging the key executives it counts on most? Many companies—and their executives—are surprised to learn that the disability and retirement plans of top leadership fall short in comparison to the plans of other employees within the organization.
The Institute of Medicine's report, Unequal Treatment: Confronting Racial/Ethnic Disparities in Health Care, cited more than 175 studies documenting diagnostic and treatment disparities of various conditions among racial/ethnic populations, even when confounding factors (e.g., insurance and socioeconomic status, comorbidities, age, healthcare venue, stage of diseases) were controlled for in analyses.Specific examples include higher rates of hypertension, diabetes, breast cancer, cervical cancer, colon cancer, and cardiovascular diseases in African Americans; diabetes in Native Americans, Alaskan Natives, and Latino populations; and heart disease mortality in certain Asian American, Latino or Hispanic, and Native American groups.Lower rates of immunization and higher rates of infant mortality have been reported in African American, Hispanic, and Native American populations.
Across the United States, a legislative movement to mandate paid sick leave time for all employees has picked up significant momentum over the past couple of years. With a number of states, municipalities and even the President advocating for these new mandates, it is important that employers know how these changes impact them.
At a recent Disability Management Employer Coalition event, Spring partner Teri Weber gave the presentation below on paid sick leave laws with fellow industry experts Geoffrey Simpson from Presagia and Mike Soltis from jackson lewis.
We hope you find this deck helpful and please don’t hesitate to reach out to Teri using the form below with any questions about paid sick leave laws or anything related to leave management.
Significant cost increases. Decreasing benefits. Lack of control. If this is your employee benefits story, then we invite you to consider alternative ways to fund your benefits program.
Captives bring a slew of benefits, including more control, long-term cost savings, and the potential to earn dividends. Most importantly, it puts you in charge of your benefits program's performance.
Shawn Lanter from Berkley Accident and Health digs into what a captive is, why they exist, and how they could work for you.
The Pros and Cons of Self-Insured vs. Fully Insuredbenefitexpress
This webinar reviews which factors and employer should consider in self-insuring and full benefits. It will discuss the legal, administrative, and ee issues.
This presentation is designed to provide the information needed to understand self-funding, assist you in explaining the solution to clients and then determine whether it is right for their company by comparing and contrasting it to a fully insured solution.
SR&ED funds can go direct to Investigators and does not interfere with other fund sources or have ethics issues.
We have crafted strategies to maximize the dollars realized,minimize the effort of assembling claims and avoid unnecessary CRA headaches. Clients care about their after-tax position, as well as cash flow, retirement needs and estate planning. Annual SR&ED rebates can be significant, but need to harmonize with other strategies to give the greatest benefit. Goulet Associates strives to supply one piece of the larger puzzle.
BIZGrowth Strategies - Workforce & Talent Optimization Special EditionCBIZ, Inc.
Amid today’s economic uncertainty, we know you need strategies and solutions that will help your business thrive. With workforce and talent concerns running high for employers across the nation, our experts developed these articles with those critical issues top of mind. We offer fresh insights designed to attract, retain, engage and motivate your employees — all while protecting your bottom line and managing emerging risks. Articles include:
- Unlock Success with Effective Performance Management
- How Employers Can Benefit from Financial Wellbeing Programs
- How to Talk About Hard Decisions During a Recession
- Cost-Effective Health Plan Perks to Consider in 2023
- 3 HR Strategies to Recession-Proof Your Organization
- Responding to Employment Practices Liability (EPL) Claims
- Versatility — Important in Life & Life Insurance
Virtual Financial Group is most powerful virtual business & success system ever seen in the history of financial services. Mike Hinsvark & Chris Delfino are CEO & Founder of Virtual Financial Group (VFG), San Diego, CA. Virtual Financial Group Reviews are excellent in ratings for performance in Virtual Financial Services.
Fraser Trebilcock teamed up with Lansing Regional Chamber of Commerce to present a free seminar to help employers keep up with changes related to Health Care Reform. This is the fourth presentation in the Business Education Series, titled "Navigating the ACA Marketplace: Guidance for Small Businesses and Individuals". Michael James, Senior Health Care and Business Attorney from Fraser Trebilcock, presented the keynote presentation.
Help Employees Reach Their Financial Goals - Regardless of the size of your business or the
type of benefits you provide, the Employee
Financial Resource Program offers you many
advantages • Highlights what you provide to your
employees as the foundation of their financial
security, which reinforces goodwill and helps
employee morale and retention
• May increase productivity as employees
gain more control over their financial future
• Allows you to distance yourself from offering
financial advice
• Facilitates offering another valuable benefit to
your employees, with no cost to you
Similar to Insurance in Superannuation - Challenges in the current market (20)
Innovations in post retirement products and servicesStephen Huppert
Presentation at IBRC Post Retirement Conference 9 October 2017 covering:
A look at innovative products and services covering both the design and delivery of products and services
What will be the impact of emerging technologies on post retirement products and services?
What can superannuation funds and wealth managers learn from innovation and disruption in other industries?
Future of Investment Operations & Technology InnovationStephen Huppert
Presentation at IBRC Superannuation Funds Back Office Innovations 2017 Forum looking at the potential impact of emerging technologies on back-office teams.
Blockchain, artificial intelligence, robotics, automated data entry and data mining are some of the big technological trends set to radically disrupt the way the back-office teams of superannuation funds and their service providers do their jobs in the not-too-distant future.
Impact of digital disruption on post retirement products and servicesStephen Huppert
Presentation to IBR Post Retirement Conference 2016
• How will emerging technologies continue to impact Post Retirement products and services and how they are delivered
• How are customer expectations being changed by non-traditional traditional new entrants
• What can the superannuation funds and wealth managers learn from these disruptors
Our report models the future progress of the Australian superannuation industry over the next 20 years to 2035, the report projects a $9.5 trillion system – having grown growing from $1.6 trillion at 30 June 2013 to $2 trillion as at 30 June 2015, and doubling to $4 trillion by in 2025.
Financial Services at the Edge: A look at some of the technology and digital trends likely to disrupt the Financial Services Industry
Presentation to AIST Young Super Network in 2015
7. Economic downturn
Insurance payout in lieu
of retrenchment
Significant
premium
increases
Late reporting of TPD
limits opportunities to
rehabilitate or reduce
benefit
Reinsurance market
tightening
Increases in default
cover, especially TPD
leading to incentives to
claim
Definitions becoming
complex leading to
unanticipated claims
SLAs take precedence
over rigorous
assessment of claims
AALs becoming more
and more generous
Return to work
definitions not able to be
readily enforced
Poor data quality
Pricing on incomplete
data
Increased involvement
of lawyers
Aggressive competition
for business
Worsening DI claims
experience
Greater incidence and
longer duration
Observations from the market
Experience now very
different to when priced
Incidence of mental
health now up to 30-40%
of disability claims
8. “As a result of the poor group claims experience, there have been some very
significant increases in premium rates for large superannuation funds in recent times
— of the order of 25 per cent to 40 per cent in a number of cases".
"This is a direct reflection of poor past pricing and governance practices, and
recognition that the premium rates were just not sustainable.
“[While the insurance industry is] starting to address its shortcomings, unfortunately,
superannuation members bear the brunt of the mispricing that occurred in the past“.
Perspective from APRA
Ian Laughlin
Deputy Chairman,
June 2013
10. 0
1,000
2,000
3,000
2004 2007 2010 2013
PremiumsPaidtoInsurer($m)
Premiums Paid
0
200
400
600
800
1,000
1,200
1,400
2004 2007 2010 2013
ProceedsonInsurancePolicies
($m)
Proceeds on Insurance
Policies
0%
50%
100%
2004 2007 2010 2013
LossRatio
Loss Ratio
Perspective from the superannuation funds
Source: APRA
11. Perspective from insurance companies
“While claims experience improved overall, Wholesale Life
net revenue declined significantly due to unfavourable claims
experience and claims reserve increases”
Comminsure Full Year Profit Announcement, 14 August 2013
“Australian wealth protection operating earnings down 52%
on 1H 12, reflecting poor claims experience and increased
lapse rates.
The result was impacted by experience losses of A$33m and
lower profit margins reflecting lapse assumptions
strengthened in FY 12.”
AMP Half Year Profit Announcement, 15 August 2013
-$500
-$400
-$300
-$200
-$100
$0
$100
$200
$300
$400
Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
$m
Profit by Product
(12 mth rolling average)
Group disability income insurance
Group lump sum risk
Source: APRA
12. 0
400
800
1,200
1,600
2,000
Jun 2008 Dec 2009 Jun 2011 Dec 2012
Lump Sum Risk
Net Policy Revenue ($m)
-400
0
400
800
Jun 2008 Dec 2009 Jun 2011 Dec 2012
Lump Sum Risk
Profit before Tax ($m)
0
100
200
300
400
500
600
Jun 2008 Dec 2009 Jun 2011 Dec 2012
Disability Income
Net Policy Revenue ($m)
-150
-100
-50
0
50
100
150
Jun 2008 Dec 2009 Jun 2011 Dec 2012
Disability Income
Profit before Tax ($m)
Perspective from insurance companies
Source: APRA
14. Relaxing of product definitions
and policy terms
Legal involvement driving increased
awareness of benefits available to customers
Improvements and
increases in benefits
18. Review product features
• Review Terms & Conditions including AALs
• Tighten definitions including eligibility, default cover, return
to work rules
• Consider a time limit by which past claims will not be
allowed to be admitted
• Are all the insurance benefits relevant to fund members?
Reduce or remove benefits of limited value to members.
19. Improve claims management
• Review claims philosophy
• Process mapping
• Roles and responsibilities
• Decision making process
• Check adequacy of quality assurance procedures
and controls.
20. Better data/better use of data
• More effective use of data to understand
behaviours and processes
• Maintain better quality data for pricing. Undertake
regular reviews and cleansing of data
• Need more than three years’ data to price TPD
• Understand the performance of insurance portfolio.
21. Work with employers
• Wellness initiatives
• Early intervention
• Return to work policies.
23. Additional contributions above SG
rate for comfortable retirement
Australians need to contribute more to super. The Superannuation Guarantee
contribution will still be insufficient when it increases to 12% of salary
5.4%
7.5%
Should superannuation be
used for life insurance?
24.
25. How will the cycle stabilise?
Reported
Losses
Increases
to
premiums
Increase in
tender activity
Lack of
reliable data
What pricing
Basis?
Increase in
claims
Question arises for the sustainability of
insurance in super
If premiums keep going up…
Do members (and Trustees) opt out
at some point?
This may increase the proportion of ‘sub
standard’ lives
The cycle continues…
26. Insurers seeking
profit
Funds questioning
value
Previously thought low margin but profitable
LAGIC increasing capital requirements
Profitability falling with claim deterioration
ROC not sustainable at current levels
Funds must justify cost to member balances
Significant increases in price
Insurers choosing not to respond to tenders
Balance between cost and benefits delicate
Need a mutually sustainable understanding of cost & benefit
Supportive roles of each in ensuring fair claim payment systems
Insurers need to make a margin to continue to offer services
27. “Never let a good
crisis go to waste”
Winston Churchill