Press Release - MAY 14, 2019
AM BestTV: U.S. Disability Writers and Consumers Will Benefit From Easier Enrollment, Say AM Best Analysts
| ||Lee McDonald|
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
FOR IMMEDIATE RELEASE
OLDWICK - MAY 14, 2019
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.