Opportunities Grow for Statutory Insurance Brokers

Map of United States

The past year has brought shake-ups for statutory insurance brokers.

  • Record-high rate hikes for temporary disability benefits (TDB) in New Jersey
  • New Family Leave Insurance benefits for New Jersey
  • Increased benefits for Paid Family Leave in New York
  • The introduction of family and medical leave coverage in two more New England states

Smart insurance brokers can easily find a silver lining in much of the new legislation. Opportunities exist for statutory insurance brokers to expand into new regions, upsell enriched coverage, and guide business owners toward the benefits of a private plan rather than writing their insurance through their state’s fund.

In fact, 37 states threw their hats in the ring this past election to pass Paid Family Leave acts on a state level. As more states embrace paid family leave legislation, it could ultimately become federal, where it would work in conjunction with the federal Family Medical Leave Act (FMLA), which offers unpaid job protection for those who are out of work due to illness or to care for family members.”

Statutory Disability Coverage Across the U.S.

Moving into 2021, nine states, Washington D.C., and Puerto Rico offer statutory disability plans to employees. Of those states, only Hawaii, New Jersey, and New York provide options to privatize statutory disability through an independent insurance carrier.

Take a look at this chart to see which states offer self-funding options in lieu of the state plan, and also which states permit private coverage through an insurance company.

Paid Family and Medical Leave Plans Across the U.S. at a Glance

California, New Jersey, New York, Washington, Massachusetts, and Rhode Island offer Paid Family Leave as subsets of statutory disability plans. For instance, PFL in New York is written as a rider to DBL coverage.

In New Jersey, Family Leave Insurance is included automatically with TDB premiums. In Massachusetts and Connecticut, the Paid Family and Medical Leave Act covers both family leave and medical leave. It can be written through the state fund or through a private insurance carrier.

It is important to note that workers cannot collect statutory disability or paid family leave concurrently with unemployment insurance or workers’ compensation benefits.

2020 Brought Changes to Statutory Disability and Paid Family and Medical Leave

Let’s take a look at the year in review and some of the changes that were instituted for statutory disability and family medical leave coverage across the U.S.

After Waiving the Signature Requirement to Privatize TDB, New Jersey Increased Premiums and Benefits

In 2019, New Jersey waived the signature requirement for employers to obtain temporary disability benefits coverage through a private carrier. In the past, employers needed to obtain signature consent from 50% + 1 of employees to privatize TDB in New Jersey.

This presented opportunities for brokers, since it became easier than ever to convince business owners to switch to a private carrier for superior service, more flexible benefits, and up to 20% cost savings.

In 2020, New Jersey increased TDB insurance premiums, but also expanded disability coverage up 85% of a worker’s average weekly wage, up to $881 per week. The state also expanded its Family Leave Insurance benefits and eliminated the 7-day waiting period to begin collecting FLI benefits.

The increased premiums give business owners more reasons than ever to write their TDB coverage through a private insurance broker.

New York Increased PFL Coverage as Per Initial Plans

New York State made headlines in 2017 when it introduced one of the most robust Paid Family Leave plans in all 50 states, rivaling California’s generous policy.

Benefits continued to increase through 2021, when they will reach a high of 67% of the current statewide average weekly wage (AWW). Workers can collect up to $971.61 per week in 2021.

With PFL benefits at their maximum, it’s more important than ever for New York business owners to consider enriching DBL coverage so it is in line with PFL.

Massachusetts Signed the Paid Family and Medical Leave Act

Massachusetts announced the MA Paid Family Medical Leave Act, PFML, in the middle of the year, with coverage beginning January 1, 2021. These benefits cover paid leave to care for infants, or children newly adopted or fostered within the past 12 months. Additional benefits will roll out July 1, 2021, with time off to care for any family member with a serious health condition.

Connecticut Introduced Family and Medical Leave Insurance

Following in the steps of neighboring New York and Massachusetts, Connecticut also introduced a Paid Family Medical Leave Act that goes into effect January 1, 2022, but employers must register with the CT Paid Leave Authority by December 31, 2020. Payroll deductions for PFML begin on January 1, 2021 for the state plan.

Private Plans Create Happy Customers

As more states add paid family leave benefits to their statutory disability programs, it’s important to understand the opportunities insurance brokers have to give their customers top-notch service, flexible claims, and potentially lower premiums through private coverage.

Reference the PDF here for clarity on the states currently offering PFL, FMLA and statutory disability or rolling out programs in the new year so you can be prepared to provide your customers with the best statutory disability benefits for their money.

To provide quotes for statutory disability for new customers, you’ll need a census containing the ages, genders, and salaries of all the owners and employees of the corporation. Reach out to The DBL Center through our chat box or call us at 631.293.5100 to get started.

 

 

 


Are You Profiting from Insurance for Non Profit Organizations?

Follow these tips to grow your book of business in the nonprofit insurance sector

More than 1.5 million non profit organizations are registered in the U.S., says the National Center for Charitable statistics. And they all need nonprofit insurance coverage.

With 20.3 million people living in the New York Tri-State area, it’s safe to say a proportionate number of those non profits are based right here. And, just like your small business and large corporate customers, they are looking for low premiums, high-quality insurance coverage, and stellar service from their non profit insurance brokers.

Employee Benefits Help Compensate for Lower Pay

Non profit workers are traditionally paid less than their counterparts at for-profit companies. Owners of non profit organizations must tread carefully because they could face fines if the IRS deems their employees’ salaries “excessive.” Not only do nonprofits have less money to pay out—because their funding comes from supporter donations—but employers opt to err on the side of caution with employee salaries.

In order to find the best people to help them achieve their mission, non profits must look at other ways to attract and retain top employees. And that’s where insurance for non profit organizations comes in, especially when you are talking about enriched DBL and ancillary benefits. Most non profits have smaller operating budgets than corporations, including less money to pay out for employer-funded benefits like healthcare. But voluntary, employee-funded benefits like group life, vision, and dental coverage deliver great value at a low cost to employees.

Why You Should Consider Selling Insurance for Non Profit Organizations

Non profits go beyond foundations and mission-specific charitable organizations. They may include hospitals and universities, and other important business-oriented organizations with large teams and hefty operating costs.

Not only can non profits be a valuable sector by themselves, but selling not for profit insurance can also attract local business leads and new clients when your non profit customers spread the word to their members and volunteers about the service you deliver. Local networking groups such as your Chamber of Commerce, Lions’ Clubs, and Kiwanis are all non profit organizations.

Are you ready to start selling insurance for non profit organizations?

4 Easy Steps to Selling Insurance for Non Profit Organizations

To successfully sell not for profit insurance benefits, you need to understand what motivates the employees. Value-driven millennials often seek work with non profit organizations, because they want a career that makes a difference in the world along with providing a paycheck.

Employees are often willing to accept less pay because the intrinsic benefits of the job win out in the end. But, once reality sets in and the rent comes due, top talent may quickly be recruited away with promises of a hefty salary, ancillary benefits, and exciting perks in the corporate world.

A non profit may not be able to match a Fortune 500 in terms of pay. But non profit insurance brokers can offer something equal in intrinsic value and help organizations recruit and retain top talent by following these four steps.

  1. Research the mission and values of the organization.

Any good salesperson knows how it important it is to understand your audience. And the non profit group tends to be passionate about their beliefs. If you are working with an animal rights organization, for instance, mention your family pets you adopted from a rescue.

If you are working with an organization that supports eco-tourism,, and can off-handedly mention your Prius, they will understand you are aligned with their values. They will also love the efficiency of getting nonprofit insurance quotes online, without the hassles of paperwork.

Once you’ve made that personal connection, how do you make the leap to insurance products? By tapping into what’s important to non profit employees, you can show them the employee benefits that will help enhance their lifestyle by saving them money.

  1. Sell employees on the lifestyle benefits.

Millennials — especially those who choose to work for non profits—treasure a work/life balance and want to make a difference at work and at play. Saving money on dental and vision costs may free up cash so they can travel more, for instance, or adopt another pet from the animal rescue.

A good life insurance policy will provide peace of mind to employees starting a family. And a 401K will give them the financial freedom they need to continue supporting their favorite causes, through donations or volunteerism, into their retirement.

  1. Educate employers about the advantages of low-cost ancillary benefits.

Recruiting and retention is a major challenge for executives in the non profit sector. Smaller organizations may not have an HR director who understands the specifics of employee benefits packages, how they are structured, or what’s available.

They need a non profit insurance broker they can trust to explain how ancillary benefits can be bundled with mandatory coverage for maximum savings, and how these benefits can be used as important recruiting and retention tools to keep top talent.

  1. Make sure employees and employers understand exactly what they’re getting, how much money it can save them, and how it can enhance their lives.

Don’t assume anyone in the organization understands the value of employee benefits. Hold a lunch-and-learn seminar, make information available on your website, let employers and their employees, alike, know you are available for questions.

Bottom line: Making insurance for non profit organizations part of your book of business involves a large amount consultative selling. Make sure prospective clients understand that these are employee-funded, voluntary benefits that cost very little compared to the money they will save over their lives.


Creating An Employee Wellness Culture In Your Organization

Focusing on employee wellness can reduce disability insurance claims

State-mandated DBL (New York) and TDB (New Jersey) insurance provide employees with income if they are sick or disabled for an extended period of time. Overall, this insurance coverage can increase employee job satisfaction and overall company morale.

But, even with insurance coverage sick employees still take a toll on the business. You can fight these negative effects by fostering an employee wellness culture within your organization.

Reduce Productivity Losses, Improve Profitability through Employee Wellness

Productivity losses linked to employees who miss work cost employers $225.8 billion, or $1,685 per employee, each year, according to CDC statistics. Of that lost money, more than half ($153 billion) is a result of sick time used by full-time workers who are overweight or obese or have chronic health issues.

Reducing excess weight, high blood pressure, glucose, and cholesterol levels by just 1 percent are employee wellness measures that can save up to $103 annually in medical costs per person.

One way to encourage healthier lifestyles for your workers is by building an employee wellness culture within your organization, modeled by executives and carried down to every employee.

There are many ways to do so—and these small changes don’t have to cost a fortune. And certainly less than the $1,685 spent per employee when people get sick).

1. Make healthy snacks available in the break room.

We all cringe that first week back to work after the New Year. Many of us might be trying to eat healthy or even starting new diets. But others decide to bring those leftover cookies, pies, chocolates, and fruitcake to the office, where “someone will eat them.”

As a leader in your organization, you don’t have to be that “someone.” You can even provide an alternative for everyone and encourage employee wellness through healthy foods.

Stock a mini-fridge with fresh fruits and vegetables, provide herbal teas for those who need a mid-afternoon pick-me-up, and even consider bringing in a healthy catered lunch once a week.

Or send an email to organize a mid-day potluck on a Friday, where everyone brings in their favorite healthy meal and shares the recipe.

2. “Challenge” your employees.

“Challenges” are the new fitness craze, and they work to get people moving by motivating them through the thrill of competition. Oh, and cash prizes.

Here’s how it works: Collect a small amount of money from everyone who wants to participate. Set rules, such as being active for 30 minutes each day. Employees show proof of their activity through a Fitbit, Apple Watch, or even a free downloadable app like MyFitnessPal. At the end of the challenge (typically 30 days) everyone who completed the challenge as per the rules is entered into a random drawing to win the money.

You can also divide the office into teams. The team that shows the most total minutes of physical activity over 30 days wins the challenge.

3. Plan an active office outing.

Color runs. Obstacle races. Walkathons. 5K events. There’s an activity for employees at nearly any ability level. And while the weather may not be conducive to running for anyone but the diehards right now, spring is on the way.

It’s time to catch the early-bird registration pricing for a team-building physical challenge. You can even get healthy while helping others, and engage in a race or event that donates proceeds to charity.

If you’re looking for a winter activity, consider indoor rock-climbing, laser tag, or even bowling.

4. Provide health-related perks

From free or discounted gym memberships to in-office massages, two-thirds of all U.S. workplaces today offer wellness-related benefits. But it’s not enough to provide the benefits.
You must let employees know they are available and make it easy for them to take advantage.

When you get half the office talking about last night’s boot camp, and the other half want to know where to sign up, you know you’ve created an employee wellness culture within your organization.

Mandatory DBL and TDB coverage is there when you need it. But taking small steps toward a healthier workplace can make a big difference in your organization’s overall productivity.

The DBL Center wishes all our brokers, clients, and readers a happy and healthy 2018.