OLDWICK, N.J.–(BUSINESS WIRE)–In this AMBestTV episode, Kate Steffanelli, senior financial
analyst, and Christopher Lewis, industry analyst, both of AM Best,
said a decision by the U.S. Department of Labor (DOL) to allow employers
to auto-enroll employees in long-term disability coverage should widen
awareness of that product line and provide opportunities for disability
writers to expand their business. Click on http://www.ambest.com/v.asp?v=longtermdisability519
to view the entire program.
Lewis highlighted exactly what this rule clarification by the DOL does.
“In essence, this action by the DOL confirms and affirms a rule that
allows employers to auto-enroll their employees in long-term disability
insurance programs on an opt-out basis,” said Lewis. “For example, if an
employer offers a comprehensive benefits package that includes long-term
disability insurance, and they want to increase the enrollment level of
the employees working for them, they can auto-enroll these employees in
the program without the employee affirmatively declaring it as part of
their election period.”
Steffanelli does not believe this program will promote any risks to
long-term disability writers.
“We really do not see any material risks near term. There may be some
increases throughout the market as penetration rates increase, but then
the spread will typically be across a greater population. AM Best will
continue to talk to the companies it rates concerning how they are
utilizing the program,” she said.
Recent AMBestTV episodes:
-
Spanish Nonlife Insurance Market Sustains Stable Outlook, Says AM
Best Senior Financial Analyst: Jessica Botelho-Young, senior
financial analyst, AM Best, said Spain’s economic growth and insurers’
ability to maintain focus during political uncertainty and respond to
consumer and regulatory developments help support a continued stable
market segment outlook for the country’s nonlife market: http://www.ambest.com/v.asp?v=spanishnonlife_english419.
-
Commercial Automobile Writers Hampered by Medical Costs, Loss
Trends, Says AM Best Associate Director: David Blades, associate
director, AM Best, said large gaps in performance are emerging among
U.S. commercial automobile writers, limiting some insurers’ ability to
respond to market pressures: http://www.ambest.com/v.asp?v=commercialauto519. -
Broader Economy, Repair Costs Influence Personal Automobile Sector,
Say AM Best Analysts: Raymond Thomson, director, and Samuel Hanig,
senior industry research analyst, AM Best, said results for personal
automobile insurers will in part depend on gas prices, employment
levels and medical costs: http://www.ambest.com/v.asp?v=personalauto419. -
A Key to Underwriting Cyber Risk Is Getting the Right Data, Says
Panel: At RIMS, a panel examines the state of cyber risk modeling,
including how insurers are learning to deal with so-called silent
cyber and other developments: http://www.ambest.com/v.asp?v=cyberpanel419.
AM BestTV covers exclusive AM Best and insurance
industry information and reports, targeted topics and key developments
in the insurance, reinsurance and related sectors daily. Sign up
for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html.
View AM BestTV episodes at http://www.ambest.tv.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Company, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Contacts
Lee McDonald
Group Vice President, Publication and News
Services
+1 908 439 2200, ext. 5561
[email protected]
