The Impact of Secondary Perils on Property Insurance
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Secondary perils, such as severe convective storms, floods, wildfires and hailstorms, have significantly impacted the commercial property market. In fact, according to industry data, secondary perils have consistently accounted for over 50% of insured natural disaster losses in recent years.
This article provides more information on secondary perils, including their impact on the property insurance market. It also offers tips on how businesses can mitigate associated risks.
What Are Secondary Perils?
Secondary perils are generally small to mid-sized loss events or secondary effects that follow a primary catastrophe such as an earthquake or a hurricane. According to credit rating agency AM Best, secondary perils account for a larger share of losses from catastrophes compared to primary perils, and it is now the norm that at least one secondary peril event creates losses greater than $10 billion each year.
This is a shift from historical patterns where primary perils represented the highest loss potential. Factors including climate change and population growth in coastal areas and other areas susceptible to catastrophes have led to this shift in the risk landscape.
Evolving Risk Modeling for Secondary Perils
The insurance industry has tried to address the challenges presented by secondary perils. For example, more sophisticated modeling tools are being developed to better understand and manage the risks. However, modeling capabilities are still limited compared to models for primary perils. Additionally, AM Best notes that it will be vital for secondary peril models to be continually recalibrated due to the quickly changing risk landscape.
Pricing Challenges and Capacity Constraints
Pricing challenges arise as secondary peril weather events become more common and severe. Since the technology used to model secondary perils is not as mature as those for primary perils, there is more uncertainty in underwriting them. This can lead to volatility in insurance pricing, making it harder for businesses to account for costs.
Capacity constraints also pose a significant challenge in the property insurance sector, particularly as it relates to secondary perils. These constraints can also lead to market volatility. They may result in insurers limiting coverage or pulling back from high-loss areas, leaving insureds to bear a larger portion of the risk.
Coverage Gaps
Coverage gaps for secondary perils are primarily due to underinsurance and limited availability of coverage. Additionally, property insurance policies may not cover losses caused by secondary perils like floods, leaving businesses to pay out of pocket for resulting expenses. Businesses should engage with insurance brokers and carriers to understand their coverage options and ensure they have adequate protection.
Risk Mitigation
Comprehensive risk assessment is challenging due to a lack of understanding and modeling capabilities. However, to mitigate the risks of secondary perils, businesses can adopt several risk management strategies. One such approach is business continuity planning, which involves identifying potential risks and creating procedures to minimize their impact. Additionally, investing in risk mitigation measures, such as infrastructure improvements or changes in operational practices, can reduce a business’s vulnerability to secondary perils.
Conclusion
While secondary perils present significant challenges, businesses can take proactive steps to understand these risks, ensure adequate insurance coverage and implement strategies to mitigate their impact. Contact us today for more information.
- Published in Blog
Getting the Most Out of Your 2024 Open Enrollment Communications
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Open enrollment is a crucial period for both employers and employees. It’s when employees can make important decisions about their benefits and an opportunity for employers to engage with their workforce effectively. As organizations continue to adapt to evolving workforce needs and changing regulations in 2024, open enrollment communication becomes more critical than ever.
This article highlights why open enrollment communication matters and provides tips on what to do before, during and after enrollment to maximize its effectiveness.
Why Communication Matters
Although open enrollment is critical, some employees make uneducated decisions or even miss deadlines. Some common reasons for this are that open enrollment information is often full of confusing jargon, employees may not receive enough communication from their employer or they simply don’t understand the enrollment process.
Communication matters because it enables employees to understand the open enrollment process in a clear and assessable manner, which can boost active participation in benefits selection. Employees who feel valued and informed about their benefits are more likely to appreciate their employer’s efforts and stay engaged with their work.
Before Open Enrollment
Educating and informing employees about their benefits package is integral to open enrollment. Effective communication is critical to educate and inform employees about new, returning or expanded benefits options.
Consider the following communication tips before the open enrollment period begins:
- Review previous communications. It can be enlightening for employers to review and evaluate past open enrollment communications to identify what worked and what didn’t. This information can be used to improve the current communication strategy.
- Develop key messaging. After solidifying benefits options, employers need to plan their communication strategies. The first step is figuring out key messaging, focusing on new or updated benefits offerings, and developing FAQs to address common concerns quickly.
- Customize communication. Communication is often more successful when it’s tailored to different employee segments. Consider the needs of various age groups, life stages and demographics within the workforce.
- Gather resources. Before the open enrollment period begins, it’s important for employers to have all the necessary resources—such as printed materials, digital platforms and support staff—ready.
During Open Enrollment
During the open enrollment period, employer communication efforts take center stage, as it’s when employees actively make critical decisions about their benefits. Effectively guiding employees through this process is essential for ensuring they make informed choices that align with their needs and preferences.
Consider the following communication tactics to engage employees during the open enrollment period:
- Vary communication channels. Use multiple communication channels such as email, printed materials, webinars and in-person meetings to reach employees effectively. Not everyone consumes information the same way, so a diverse approach is key.
- Prioritize clear and concise messaging. Open enrollment messaging should be simple and easy to understand. Avoiding HR or benefits-related jargon is best to help make benefits easier to understand. Additionally, many benefits are acronyms, so employers should help decode and explain the alphabet soup to employees.
- Make it digestible. It’s crucial to catch employees’ attention and present the key message immediately before they lose interest. Traditional benefits booklets can be lengthy; instead, employers could deliver bite-sized information to employees through videos and emails. If all open enrollment information is given at once, it’s easy for employees to become overwhelmed and, ultimately, disengage with the information. Digestible communication makes it easy for employees to know what to focus on and take action.
- Use real-world examples. When possible, employers can put benefits offerings in context with real-world scenarios. Employees can relate to stories, so find ways to bring the options to life. For example, instead of describing telemedicine as a 24/7 benefit, highlight that an employee could get health care answers in the middle of the night when they or a child are running a high fever. The chances of employees needing to use health care benefits during the next year are highly likely, so help reiterate the importance of complete coverage.
- Personalize communication. A personalized approach can help employers engage employees with open enrollment information. Additionally, employers may yield better results by personalizing communications to individual employees whenever possible. For example, communications could address employees by name and highlight benefits relevant to their circumstances. This builds off the earlier tip of segmenting employee groups based on age and other factors.
- Remain available. Those leading open enrollment efforts should offer opportunities for employees to ask questions and get clarifications. This can be done through webinars, town hall meetings, dedicated question-and-answer sessions or HR open office hours.
After Open Enrollment
Although open enrollment is the most pivotal time to highlight employee benefits, employers can educate employees throughout the year. Ongoing communication after open enrollment can help employees understand and utilize their available benefits.
Consider the following communication strategies after the open enrollment deadline passes:
- Follow up. Although the enrollment period is over, employers can continue communicating with employees to remind them of their choices and deadlines. Additionally, they can send reminders about important events or changes to benefits.
- Collect feedback. Gather feedback from employees about the open enrollment process. Surveys or focus groups can be used to understand what worked well and where improvements can be made.
- Evaluate and optimize. As with any workplace effort, analyzing the outcomes of open enrollment communication efforts is important. Check if goals were achieved and use the data to refine next year’s strategy.
- Provide ongoing education. Employers shouldn’t limit communication to just the open enrollment period. They can periodically remind employees of the benefits and resources available to them.
Summary
Open enrollment communication is a crucial aspect of benefits administration that directly impacts employees’ well-being and satisfaction. By planning, customizing communications and continually improving their approach, employers can make the most out of their 2024 open enrollment period. Effective communication helps employees make informed choices and strengthens their connection with the organization, leading to a happier and more engaged workforce.
Contact us for additional open enrollment support.
- Published in Blog
The RISQ RECAP:
October 9th – October 13th, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Hacker Puts 23andMe User Data Up for Sale on the Internet “An anonymous hacker is claiming to be selling “millions” of genetic profiles cobbled together from hijacked 23andMe customer accounts. The seller suggested the profiles, which include email addresses, photos, gender, date of birth and DNA ancestry, could be used to target users based on their ethnicity. 23andMe Holding Co., a genetics test kit company that offers ancestry and health reports by analyzing a person’s saliva, confirmed Friday that genuine customer data was for sale on a hacker forum.” Full Article – Insurance Journal
Summit: Cannabis Data A Key to Growing, Retaining Client Base “Data and technology are becoming more important to the cannabis market as it matures, and insurance professionals specializing in the segment would benefit from keeping that at top of mind. A group of experts gathered during Insurance Journal’s Insuring Cannabis Summit to discuss emerging opportunities and notable insurance focus areas. The panel was hosted by Charles Pyfrom, chief marketing officer at CannGen Insurance Services. Panelists shared their perspectives on data implementation and the importance of maintaining close contact with clients throughout policy lifecycles.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Agencies Press Play on Prescription Drug Machine-Readable File Requirement “Subject to the implementation timeline set to be announced by the Departments in future guidance, plan sponsors will need to work with service providers to put together a game plan to gather the required information and post the prescription drug machine-readable file.” Full Article – Proskauer Rose LLP
Fiduciary Governance: Evaluating, Selecting, and Contracting with Pharmacy Benefit Managers “The authors posit that the lack of compliance monitoring is not for lack of interest but rather because of the complexity of the landscape to which the regulation applies. As such, in this piece, we lay the groundwork for compliance studies by outlining the agencies responsible for enforcing compliance with the TiC rule, delineating the universe of entities that are required to comply with it, and discussing how compliance might be assessed.” Full Article – Nixon Peabody
The ERISA Edit: More Coverage Mandates and TiC Enforcement Ahead “Current agency guidance interpreting statutory and regulatory requirements states that preventive products that are generally available without a prescription, such as folic acid, contraception sponges, and spermicides, must be covered without co- sharing only when such products are prescribed by a healthcare provider. The September 29 RFI signals that the Departments are considering future rulemaking or new guidance that would eliminate the prescription requirement.” Full Article – Miller & Chevalier Chartered
Court Ruling Calls Into Question Whether Plans and Issuers Can Exclude Coupons Towards the MOOP “The 2021 Notice of Benefit and Payment Parameters (2021 NBPP) permitted (but did not require) plans and issuers to count direct support offered by drug manufacturers for prescription drugs toward the ACA’s annual cost-sharing limit (MOOP). The court concluded that the 2021 NBPP interpretation of ‘cost sharing’ conflicts with the statutory and regulation definition of ‘cost sharing’ under the ACA and remanded the amendments back to HHS for further consideration.” Full Article – Groom Law Group
Biden-Harris Administration Moves Forward with Medicare Drug Price Negotiations to Lower Prescription Drug Costs for People with Medicare “All 10 drug companies whose drugs were selected for price negotiation with Medicare for the first cycle of the program have decided to participate in those negotiations. These selected drugs accounted for $50.5 billion in total Part D gross covered prescription drug costs, or about 20%, of total Part D gross covered prescription drug costs between June 1, 2022 and May 31, 2023. Medicare enrollees taking the 10 drugs covered under Part D selected for negotiation paid a total of $3.4 billion in out-of-pocket costs in 2022 for these drugs.” Full Article – U.S. Department of Health and Human Services
The Proposed MHPAEA Regulations’ ‘Meaning of Terms’ Part Two: Processes, Strategies, Evidentiary Standards and Other Factors “The 2013 final MHPAEA regulations use — but do not define — the terms, ‘processes,’ ‘strategies,’ ‘evidentiary standards’ or ‘other factors.’ The Departments now propose to define these other terms. Under the proposal, ‘processes’ relate to the application of an NQTL, while ”strategies” relate to their design. Evidentiary standards are not themselves considered factors; rather, they are considered or relied upon in designing or applying a factor. This invites the question: What happens when a plan or issuer only relies upon a single evidentiary standard to design or apply an NQTL?” Full Article – McDermott, Will & Emery
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
NEW YORK
New York State Department of Labor Issues Proposed Regulations on Salary Transparency Law
“On September 13, 2023, the New York State Department of Labor published proposed regulations on the state’s salary transparency statute that took effect on September 17, 2023.” Full Article
– Proskauer Rose LLP
CALIFORNIA
California Further Extends the Ban on Employers Entering Noncompete Agreements Starting in 2024
“On Sept. 1, 2023, California Governor Gavin Newsom signed Senate Bill (SB) 699 into law with at least two significant additions to Section 16600 of the California Business and Professions Code (BPC). First, SB 699 extends the reach of California’s restrictions on noncompete agreements to contracts signed out of state. Second, SB 699 creates a private right of action for employees whose agreements include restrictive covenants. SB 699 will go into effect on Jan. 1, 2024.” Full Article
– Greenberg Traurig LLP
RHODE ISLAND
Rhode Island’s Amended Payment of Wages Act Now Imposes Felony Penalties on Employers
“Rhode Island law taking effect January 1, 2024 will impose criminal penalties on employers for knowing and willful wage and hour violations. The law also includes harsher penalties for employers generally, and those in the construction industry specifically, that misclassify workers as independent contractors.” Full Article
– Littler Mendelson P.C.
NEW JERSEY
Watch Out New York—New Jersey Wants Its Taxes Too
“July 21, 2023, New Jersey Governor Phil Murphy signed Assembly Bill No. S3128/A4694 into law, which implements an aggressive tax treatment of nonresidents who work for New Jersey employers. The law essentially adopts the Convenience of the Employer rule.” Full Article
– Littler Mendelson P.C.
GEORGIA
GA Update: Voting Leave, No Sunset on Kin Care
“Georgia’s voting leave law changed effective July 1. First, the Georgia statute was amended to add “advance in-person voting” (early voting) to the types of voting for which employers must allow unpaid time off.” Full Article
– Constangy, Brooks Smith & Prophete LLP
- Published in Blog
Understanding Auto Liability Coverage
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Auto insurance is one of the most frequently purchased types of coverage in the United States. However, while these policies may be common, they can still be complex and nuanced. Policyholders must be diligent and meticulous to ensure they fully understand their auto coverage and have ample financial protection.
One of the most common and crucial components of an auto insurance policy is adequate liability coverage. Any time a driver gets behind the wheel, they risk being involved in accidents that could harm others and incur devastating financial consequences. This article provides an overview of auto liability coverage and its importance.
What Is Auto Liability Coverage?
The liability portion of auto insurance is strongly advisable and is usually required by law. Although minimum requirements may vary among states, all drivers are generally mandated to carry certain liability coverage to ensure they can pay for losses for which they are at fault.
Liability coverage can insulate drivers from significant losses affecting third parties, including the following:
- Bodily injury—If a policyholder is responsible for an accident that injures another party, such as a pedestrian or occupants of another vehicle, this coverage can help pay resulting expenses, such as:
- Medical bills
- Lost wages
- Legal expenses
- Property damage—If a policyholder is at fault for damaging someone else’s property, such as by colliding with another vehicle or crashing into a building, this coverage can provide financial assistance to compensate affected parties and pay for costs arising from resulting lawsuits.
Most auto insurance includes three separate liability limits within a policy. These clauses establish the maximum amount of financial aid capable of being covered and generally are listed as the following:
- Bodily injury liability limit per person
- Bodily injury liability limit per accident
- Property damage liability limit
Another type of coverage that could help you financially protect yourself in an accident is uninsured/underinsured motorist coverage. This coverage, which is sometimes sold separately as uninsured motorist coverage and underinsured motorist coverage, can often be added to your personal auto insurance policy to help you avoid high out-of-pocket costs if you’re involved in an accident with a driver who doesn’t have any liability coverage (uninsured motorist coverage) or doesn’t have enough liability coverage (underinsured motorist coverage).
Ensuring Adequate Coverage
Motorists should consult with a qualified insurance professional to understand applicable auto insurance requirements. Failing to comply with relevant laws could lead to significant fines and legal penalties. Their lender may also require those who purchased their vehicles with the help of an auto loan to adhere to additional requirements.
Even if not mandated to do so, carrying sufficient auto liability coverage is strongly advisable. Without suitable insurance, an accident could lead to devastating out-of-pocket costs that jeopardize a driver’s financial situation.
It’s also essential to understand the limitations of auto liability coverage, which should not be relied upon to cover a policyholder’s own losses. Such financial assistance generally must be acquired through including additional coverages in an auto insurance policy, such as the following:
- Collision coverage—This may help pay for damage sustained by a policyholder’s vehicle resulting from striking another car or stationary object (e.g., building, fence, tree)
- Comprehensive coverage—This may provide coverage for incidents not included in collision coverage, such as fires, crime and severe weather.
- Medical payments coverage—This may provide financial assistance for a policyholder and their passengers if they are injured in an accident, regardless of who was at fault.
Making Sure You’re Covered
Auto liability coverage is an essential form of financial protection for any person who owns or operates a motor vehicle. For more information or guidance regarding optimal auto insurance solutions, contact RISQ Consulting today.
- Published in Blog
OSHA Launches New Compliance Initiative to Protect Stone Fabrication Workers from Silica Exposure
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
On Sept. 22, 2023, the Occupational Safety and Health Administration (OSHA) launched a new initiative focused on enhancing enforcement and providing compliance assistance to protect workers in the engineered stone fabrication and installation industries. This policy is effective as of the date of this memorandum and will be ongoing until otherwise directed.
Silica Hazard
OSHA and the National Institute for Occupational Safety and Health identify silica dust exposure as a health hazard for workers involved in manufacturing, finishing and installing natural and manufactured stone, including man-made, engineered artificial and cultured types of stone.
When inhaled, tiny crystalline silica particles expose workers to the risk of silicosis, an incurable, progressively disabling and sometimes fatal lung disease. Unsafe silica dust exposure can also lead to chronic obstructive pulmonary disease or kidney disease.
Compliance Initiative Overview
Supplementing OSHA’s current National Emphasis Program for Respirable Crystalline Silica, this initiative focuses enforcement efforts on industry employers to ensure they’re following required safety standards and providing workers with the protections required to keep them healthy. It establishes procedures for prioritizing federal OSHA inspections to identify and ensure prompt abatement of hazards in covered industries where workers face exposure to high levels of silica dust.
Industries subject to the prioritized programmed inspections include those engaged in cut stone and stone product manufacturing, as well as brick, stone and related construction material merchant wholesalers. Outreach efforts will continue to include additional industries that may work with engineered stone. Programmed inspections will be prioritized in the following two NAICS codes:
- 327991 – Cut Stone and Stone Product Manufacturing; and
- 423320 – Brick, Stone, and Related Construction Material Merchant Wholesalers.
OSHA area offices will focus enforcement efforts on these two NAICS codes using the targeting and site selection procedures outlined below. This initiative requires each area office in regions 1 through 8 to complete a minimum of five programmed inspections (i.e., targeting sites selected from NAICS 327991 and 423320) of establishments working with engineered stone within 12 months from the date of this initiative.
Workers involved in manufacturing, finishing and installing manufactured stone countertops are at risk for significant crystalline silica exposure. Facilities in NAICS codes 327991 or 423320 may be selected for inspection under this initiative if they meet one of the following criteria for work processes:
- Manufacturing and/or finishing engineered or manufactured stone products at the facility; and
- Finishing and/or installing engineered or manufactured stone products off-site.
Activities occurring at manufacturing, finishing engineered or manufactured stone facilities include:
- Cutting, grinding, chipping, sanding, drilling and polishing engineered or manufactured stone products
- Opening bags of ground quartz, moving or mixing bulk raw materials, cleaning and scraping mixers, or cleaning dust collector bag houses
- Changing filters on dust collectors
- Making the engineered or cultured slabs—involves mixing crystalline silica, resins and pigments
- Operating powered hand tools such as saws, grinders and high-speed polishers
- Casting departments that mix and heat raw materials, including silica sand (which comprises more than 70% of each countertop by weight), epoxy resin, PA (a known respiratory sensitizer) and pigments
Employer Next Steps
Affected employers and stakeholders should become familiar with this OSHA initiative by studying the memorandum and the fact sheets on dust control methods and safer work practices for engineered stone manufacturing, finishing and installation operations. These employers should also review the OSHA silica standards and ensure their operations comply with the required regulations and prevent employee exposure to silica.
- Published in Blog
The RISQ RECAP:
October 2nd – October 6th, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Report: Pilot Error, Training Issues Factors in Alaska Crash That Killed Czech Billionaire “The probable cause of a heli-skiing crash in Alaska in 2021 that killed a Czech billionaire and four others was a failure by the pilot to adequately respond to whiteout conditions, a federal accident report concluded. The report from the National Transportation Safety Board found that an “inadequate pilot training program” by the helicopter operator and “insufficient oversight” by a Federal Aviation Administration inspector were contributing factors.” Full Article – Insurance Journal
A Hidden Climate Danger Threatens Coastal Communities With Toxic Chemicals “A little-known climate threat lurks under our feet: rising groundwater that could release toxic chemicals from more than 132,000 contaminated sites in coastal areas of the US. In a first of its kind study, researchers estimated the number of polluted industrial sites and mapped them to areas likely to experience groundwater inundation due to rising seas. “A lot of people don’t realize that the ocean actually extends under the land in coastal areas, so as the ocean rises, it pushes up the groundwater toward the surface,” said Kristina Hill, an associate professor at the University of California at Berkeley and the lead author of the paper, which was published last week in the journal Earth’s Future.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
EEOC, NLRB and DOL Shutdown Contingency Plans—The 2023 Edition “Once again we are poised on the brink of another possible federal government shutdown, and employers may be wondering how it may impact them.” Full Article – Shawe Rosenthal LLP
Significant Changes to US Overtime Pay Requirements on the Horizon “On September 8, 2023, the Department of Labor announced publication of a Notice of Proposed Rulemaking Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.” Full Article – Baker & McKenzie LLP
OSHA’s Walk-Around Proposal Could Open Workplace Inspections to Outsiders “The Occupational Safety and Health Administration (‘OSHA’) recently announced a Notice of Proposed Rulemaking that would make it easier for non-employee representatives to participate in worksite inspections.” Full Article – Hunton Andrews Kurth LLP
Federal OSHA Announces Inspection Initiative Focusing on Crystalline Silica in the Stone Fabrication Industry “The U.S. Department of Labor recently announced that OSHA has launched a new initiative focused on enhancing enforcement and providing compliance assistance to protect workers from the hazards of silica.” Full Article – Seyfarth Shaw LLP
Dismantling Gender Walls in the Construction Industry “According to the national construction industry trade association Associated Builders and Contractors, construction labor demands are high. The construction business pays well and offers great opportunities for progression. The traditionally male-dominated industry has struggled, however, to convince women to join its workforce.” Full Article – Jackson Lewis P.C.
Hair, Beards, and the Invigorated Duty to Accommodate Religious Practices “Hair. In some religions it is considered a sacred gift from God that should not be cut. In other religions, it must be styled, covered, or cut in particular ways. These religious practices may result in employees’ requesting relief from various employment policies. If that happens, the request must be evaluated under the newly invigorated “undue hardship” test outlined in the Supreme Court’s Groff v DeJoy decision. Failure to do so is likely to lead to an unpleasant outcome for the employer.” Full Article – Constangy, Brooks, Smith & Prophete LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
NEW YORK
New York State Department of Labor Issues Proposed Regulations on Salary Transparency Law
“On September 13, 2023, the New York State Department of Labor published proposed regulations on the state’s salary transparency statute that took effect on September 17, 2023.” Full Article
– Proskauer Rose LLP
CALIFORNIA
California Further Extends the Ban on Employers Entering Noncompete Agreements Starting in 2024
“On Sept. 1, 2023, California Governor Gavin Newsom signed Senate Bill (SB) 699 into law with at least two significant additions to Section 16600 of the California Business and Professions Code (BPC). First, SB 699 extends the reach of California’s restrictions on noncompete agreements to contracts signed out of state. Second, SB 699 creates a private right of action for employees whose agreements include restrictive covenants. SB 699 will go into effect on Jan. 1, 2024.” Full Article
– Greenberg Traurig LLP
RHODE ISLAND
Rhode Island’s Amended Payment of Wages Act Now Imposes Felony Penalties on Employers
“Rhode Island law taking effect January 1, 2024 will impose criminal penalties on employers for knowing and willful wage and hour violations. The law also includes harsher penalties for employers generally, and those in the construction industry specifically, that misclassify workers as independent contractors.” Full Article
– Littler Mendelson P.C.
NEW JERSEY
Watch Out New York—New Jersey Wants Its Taxes Too
“July 21, 2023, New Jersey Governor Phil Murphy signed Assembly Bill No. S3128/A4694 into law, which implements an aggressive tax treatment of nonresidents who work for New Jersey employers. The law essentially adopts the Convenience of the Employer rule.” Full Article
– Littler Mendelson P.C.
GEORGIA
GA Update: Voting Leave, No Sunset on Kin Care
“Georgia’s voting leave law changed effective July 1. First, the Georgia statute was amended to add “advance in-person voting” (early voting) to the types of voting for which employers must allow unpaid time off.” Full Article
– Constangy, Brooks Smith & Prophete LLP
- Published in Blog
Fertility Benefits Can Boost Employee Attraction, Retention and Productivity
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Work and family are traditionally two of the most significant aspects of an employee’s life. Unfortunately, family planning doesn’t always go as intended. According to the World Health Organization (WHO), 1 in 6 people struggle with fertility issues. This can make the journey to parenthood costly, stressful and challenging. So, it’s not surprising that stress from family planning often impacts employees’ work performance. A 2023 survey by fertility care platform Carrot found that 65% of employees said they spent time at work researching fertility treatments, benefits and family planning, and 55% said fertility challenges had detrimentally impacted their work performance.
Fertility issues contribute to presenteeism, a term that describes employees who are less productive due to personal distractions. In addition to negatively impacting employee morale, engagement and performance, presenteeism is costly for employers. Harvard Business Review reports that presenteeism costs the U.S. economy more than $150 billion yearly in lost productivity, far exceeding absenteeism costs. Employers that provide fertility benefits may notice that employees are more engaged, productive and likely to stay at the organization long term.
This article provides an overview of common fertility benefits and how employers can leverage them to boost employee retention, attraction and productivity.
What Is Infertility?
Infertility has been recognized as a disease by the WHO and the American Medical Association since 2017. It’s defined as the inability to conceive after a full year of trying without contraceptives. Both men and women are affected by infertility. However, individuals don’t always show identifiable signs of infertility, making this condition difficult to diagnose.
There are two types of infertility: primary and secondary. Primary infertility refers to individuals who have never achieved pregnancy, while secondary infertility refers to individuals who have had at least one prior pregnancy. As a result, infertility can affect individuals who are both starting and adding to their families. This spans a wide age range of employees, who make up a crucial percentage of the workforce. Employers that provide comprehensive fertility benefits can greatly improve the retention and attraction of this talented demographic.
Reasons Employees Pursue Fertility Treatment
There are numerous causes of infertility. Although knowing the reason for infertility doesn’t guarantee a medical solution, it can help individuals understand their medical options if they’re struggling to conceive. The following are common conditions that cause individuals to seek fertility treatment:
- Ovulation disorders—Numerous conditions can prevent or drastically lower the chances of ovulation. This means fewer eggs are present, which may force individuals to seek infertility treatments, such as in-vitro fertilization (IVF).
- Uterine fibroids—Fibroids are benign tumors in the uterus that can interfere with pregnancies. These become more common as women age, especially during their 30s and 40s.
- Endometriosis—When uterine tissue grows outside of the uterus, it can cause severe pelvic pain and affect how reproductive organs function.
- Genetic disorders—Individuals concerned about passing on genetic disorders to their children may opt for procedures (e.g., IVF) that allow doctors to screen eggs in a lab for genetic disorders before reinserting them into the uterus.
- Fertility preservation—Some treatments, such as chemotherapy, can reduce fertility. As a result, some individuals who must undergo these treatments may choose to preserve some of their eggs or sperm for fertilization later on.
Insurance plans often exclude same-sex couples or single parents by choice. Employers have an opportunity to read the fine print on plans and design fertility benefits that support modern family building.
The Cost of Infertility
According to Forbes, a single IVF cycle can cost more than $30,000. Furthermore, IVF doesn’t guarantee a pregnancy. On the contrary, research by the University of New South Wales Sydney in 2017 found that women have a 54%-77% chance of having a baby by their eighth IVF cycle. As a result, the cost of fertility treatments is a source of financial stress for those who are hoping to start a family.
The 2023 Carrot survey found that just 32% of individuals could afford fertility treatment if needed. To start a family, nearly half of the respondents were willing to take another job, 29% would need to go into debt and 39% said they would dip into their savings to afford fertility treatments. Struggling to conceive, taking on debt and worrying about paying for fertility treatment can contribute to lost productivity at work, increased stress and presenteeism. It can also strain employees’ relationships and contribute to feelings of shame, inadequacy and guilt. This can harm employees’ mental health and worsen underlying mental illness, such as anxiety and depression. Individuals who struggle to conceive also commonly report feeling isolated and that they’re not in control. This can greatly impact how an employee performs at work, including more missed workdays and greater distractions when working.
What Are Fertility Benefits?
When it comes to providing fertility benefits, employers can elect to pay a portion of infertility treatment costs as a voluntary benefit or cover specific treatments under their health plan. The right choice will depend on employee preferences and the organization’s budget. Employers may choose to cover a variety of fertility treatments to help employees with family-building, such as:
- IVF—This procedure involves egg retrieval, fertilization and an embryo transfer. It is relatively invasive and, like most treatments, can be very expensive. However, IVF remains a common fertility method.
- Intrauterine insemination (IUI)—Artificial insemination has been around for decades and is one of the most popular options for individuals who need help conceiving. IUI is a type of artificial insemination. While there are many methods of artificial insemination, they all involve manually injecting semen into the uterus or cervix with medical devices.
- Surgery—Procedures to remove ovarian cysts, clear fallopian tubes, remove adhesions from the uterus and collect semen from individuals who cannot otherwise produce it can all help resolve infertility issues.
- Medications—There are a variety of medications, both prescription and over the counter, that can help increase fertility. Medications can stimulate ovulation, promote healthier egg growth, improve sperm count and prevent premature ovulation. Egg and sperm donors are also an option.
The Importance of Fertility Benefits
Most states don’t require private insurers to cover infertility treatment, making employer-provided fertility benefits even more important and valuable to workers. Fertility benefits can help employees start a family without going into debt or suffering undue financial stress, which makes them highly desired by employees. According to Carrot, 65% of employees said they’d change jobs to work for an organization that provided fertility benefits, and 72% said they’d continue working at an organization longer if it provided such benefits. Additionally, 3 in 4 respondents said fertility benefits were an important part of an inclusive company culture.
Many employers are responding with improved family planning support amid growing interest in fertility benefits that provide support for all types of families. According to the State of Fertility and Family Benefits in 2023 Report by Maven, of nearly 600 surveyed HR professionals, 63% said they planned to increase family health benefits in the next few years and 87% recognized family benefits as “extremely important” to current and prospective employees. This is largely due to family-building benefits’ impact on employees’ mental health, performance and loyalty.
Conclusion
Fertility struggles can negatively impact employees’ mental health, contribute to financial stress and increase presenteeism and absenteeism, which worsen job productivity. As employees continue to express interest in fertility benefits, employers who cover some or all of the costs of fertility treatments can experience significant improvements in productivity and satisfaction. It can also improve employee retention and help employers attract talented prospective employees.
Contact us today for more workplace resources.
- Published in Blog
Preparing for the Fall and Winter Virus Season
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Fall and winter are when viruses that cause respiratory disease usually circulate more heavily. Before the COVID-19 pandemic, influenza (flu) and respiratory syncytial virus (RSV) were the main causes of severe respiratory disease during these times of year. Although some people have mild symptoms when they catch the flu or RSV, others get sick enough to be hospitalized. Some seasons are more severe than others based on strains of the viruses circulating and immunity to these viruses.
Respiratory disease season lasts from October through May in the United States, peaking between December and February. The timing and duration of virus activity have been unpredictable since the start of the COVID-19 pandemic. As the U.S. Centers for Disease Control and Prevention (CDC) reports early increases in some viruses, employers can plan to prepare for peak activity. Furthermore, the CDC predicts a possible increase in hospitalizations due to new COVID-19 variants or a severe flu season paired with waves of COVID-19 and RSV cases.
With respiratory infections likely in the fall and winter seasons, it’s important for employers to consider ways to mitigate or address illness among employees to help keep workers healthy and productive. This article highlights best practices for employers during the 2023-24 respiratory season.
Employer Guidance
While the COVID-19 pandemic and the public health emergency have officially ended, the coronavirus still has the potential to disrupt workplaces for the foreseeable future. As other respiratory viruses and infections spread during the fall and winter, employers should do their due diligence and continue incorporating employee health and safety in current workplace plans, policies and benefits.
Consider the following best practices for addressing employee health and safety during the 2023-24 respiratory virus season:
- Review organizational risks. Even though there are no longer any federal, state or local mandates related to COVID-19, employers can independently assess exposures and determine how to respond. Employers could identify the hazards and risks for their on-site workplaces and implement controls (e.g., personal protective equipment and administrative or engineering controls).
- Establish remote work policies. If the workforce is primarily on-site, employers can consider having a backup plan to allow employees to work from home when dealing with virus-related symptoms. Some respiratory illnesses may not be debilitating in all cases, so employees can still work but remain isolated to reduce the chances of others getting infected.
- Review paid time off and leave policies. Expanding leave policies, including allowing negative balances in paid time off banks and leave donation or sharing programs, could be helpful to employees battling illness in these seasons. Policies may also accommodate employees to take time off when they or their family members are sick.
- Encourage healthy employee behaviors. Employee education is critical for healthy employee behavior changes. Vaccinations have been shown to reduce hospitalizations, so employers can encourage employees to get vaccinated. This fall, vaccines for the flu, RSV and COVID-19 are available. Aside from vaccinations, people need to get a good night’s sleep, stay active and drink plenty of water to keep their immune systems strong. Employers could also encourage workers to eat a nutritious diet of healthy grains, fruits, vegetables and fiber. Employee benefits could support these aspects of personal health and wellness or even incentivize healthy behaviors.
- Keep cleaning supplies on hand. If employees are working on-site, it can be beneficial to have hand sanitizer and cleaning supplies available for employee use. Businesses can encourage good respiratory etiquette and hand hygiene to help prevent the spread of illnesses.
- Foster open communication. Employers can encourage employees to talk to their managers if they’re experiencing any health issues, including long-lasting ones that may impact their performance. Training for managers could also help them respond appropriately to such conversations, which could properly address employee concerns, strengthen employee well-being and reduce legal risks.
In general, employers must stay agile and accommodating while adapting to the post-pandemic workplace. Without local, state or federal COVID-19-related mandates, employers have more ownership of how they address the respiratory season while protecting and supporting their workforces.
For More Information
Along with the flu and RSV, COVID-19 has become a part of the respiratory virus season. As infections and hospitalizations are expected, employers can review workplace policies and consider ways to protect and support employees who may catch a respiratory infection this season.
For the latest updates about the current respiratory disease season, visit the CDC’s website. Contact us today for additional workplace strategy guidance.
- Published in Blog
The RISQ RECAP:
September 25th – September 29th, 2023
Each week, you’ll find specially curated news articles to keep you up to date on the ever-evolving world of insurance and risk management. The articles are divided out between items relevant to Property & Casualty, Employee Benefits/Human Resources, and Compliance. We’ve included brief summaries of each item as well as a link to the original articles.
PROPERTY & CASUALTY
Tech Startups in US, France, Germany Help in Fight Against Wildfires “This year has been a challenging one for Phil Schneider, who hasn’t seen wildfire behavior like this in his 47-year firefighting career. Blazes raged through more than 2,000 acres of wildland in recent months in his county deep in the woods of Oregon, where a wet climate once made forest fires unthinkable. That’s an increasingly common scene around the world — from Canada to Greece, global warming has helped fuel larger and more destructive blazes, pushing firefighting services to the brink. But Schneider has a new recruit to help manage the growing risks: artificial intelligence.” Full Article – Insurance Journal
US Home Insurance ‘Bubble’ Closer to Popping as Climate Risks Mount: Report “Home insurance costs that have soared in much of the US may get even higher. Tens of millions of properties around the country are insured at prices that haven’t caught up with the danger of hurricanes, wildfires and floods, according to a new report from the First Street Foundation, a nonprofit that works to define and communicate risks posed by climate change. First Street estimates that 39 million US homes are insured at artificially suppressed prices compared with the risk they actually face. Of those, nearly 6.8 million homes are covered by state-backed “insurer of last resort” policies.” Full Article – Insurance Journal
EMPLOYEE BENEFITS, HUMAN RESOURCES, & COMPLIANCE
Save Billions or Stick with Humira? Drug Brokers Steer Americans to the More Costly Choice “For real competition to take hold, the big pharmacy benefit managers, or PBMs, the companies that negotiate prices and set the prescription drug menu for 80% of insured patients in the United States, would have to position the new drugs favorably in health plans. They haven’t, though the logic for doing so seems plain.” Full Article – KFF Health News
COBRA Notice Litigation Update: Recent Decision Signals Some Skepticism of Plaintiff’s Claims “Despite the sheer volume of COBRA notice cases, courts have issued relatively little guidance on the merits of the plaintiffs’ claims. Based on the decisions and proceedings to date, this article describes some trends indicating that, although COBRA notice litigation may present a risk for plan sponsors, there are also multiple potential merits and class-based defenses available to defendants.” Full Article – Groom Law Group
Managing Increasing Health and Welfare Fiduciary Risks “Take action now to stave off the pending surge in class action litigation against health and welfare plan sponsors and fiduciaries. Plaintiffs’ firms are actively looking for potential employee plaintiffs who participate in group health plans. Manage risks by establishing a health and welfare plan fiduciary committee to conduct formal, well- documented processes to monitor health plan activities and service provider performance and fees.” Full Article – Nixon Peabody
Gag Clause Attestations Due December 31, 2023 “Under the Consolidated Appropriations Act of 2021 (CAA), group health plans and health insurance issuers are prohibited from entering into agreements with service providers restricting certain information that the plan may make available to another party. This information includes [1] provider- specific cost or quality information sharing with plan members or [2] claims data (including individual claims pricing) sharing with plan sponsors (and their service providers).” Full Article – Graydon Head & Ritchey LLP
One Year Later, Where Are the ‘Transparency in Coverage’ Compliance Studies “The authors posit that the lack of compliance monitoring is not for lack of interest but rather because of the complexity of the landscape to which the regulation applies. As such, in this piece, we lay the groundwork for compliance studies by outlining the agencies responsible for enforcing compliance with the TiC rule, delineating the universe of entities that are required to comply with it, and discussing how compliance might be assessed.” Full Article – Health Affairs Forefront
Action Steps Health Parity Should Take Now in Response to New DOL Guidance on Mental Health Parity “The Departments have consistently highlighted certain types of plan exclusions or limitations as problematic or out of compliance and addressed these areas again in both the 2023 MHPAEA Report to Congress and the Proposed Rules. Plan sponsors should review their plans carefully for these red flags and should also consider performing a more general MHPAEA compliance review of their group health plans, with an emphasis on the Department’s six areas of focus.” Full Article – Foley & Lardner LLP
STATE & INTERNATIONAL COMPLIANCE
In addition to the RISQ Review, RISQ Consulting also provides a resource that features changes and updates to State and International Compliance measures. We’ve included brief summaries of each item below, and also provided links to the original articles if you’d like to read further.
TEXAS
Employee E-Signatures in Arbitration Agreements Under Scrutiny
“Regardless of the ultimate outcome of the AutoNation case, one thing is clear—employers should have e-signature systems that leave little room for doubt about the efficacy of the security procedures, and the resulting authenticity of an employee’s e-signature.” Full Article
– Hunton Andrews Kurth LLP
NEW YORK
New York Enacts Laws on Captive Audience Meetings, Wage Theft, and Gender Identity
“During a busy term at the New York Legislature, Governor Kathy Hochul signed legislation prohibiting captive audience meetings, categorizing wage theft as larceny, and expanding protection of “gender identity or expression” to interns.” Full Article
– Jackson Lewis P.C.
CALIFORNIA
New California Non-Compete Law Furthers the State’s Employee Mobility Protections and Seeks to Void Out of State Employee Non-Compete Agreements
“On September 1, 2023, California Governor Gavin Newsom signed legislation that furthers the state’s protections for employee mobility and seeks to void out of state employee non-compete agreements. Specifically, the new law provides that any contract that is void under California law is unenforceable regardless of where and when the employee signed the contract.” Full Article
– Seyfarth Shaw LLP
WISCONSIN
Worker’s Compensation in the Work-from-Home Era
“At the onset of the COVID-19 pandemic in 2020, many employees around Wisconsin transitioned from a traditional office setting to working remotely from home. Since then, new questions have been raised by workers regarding which at-home injuries might be covered under the Worker’s Compensation Act.” Full Article
– State Bar of Wisconsin
NEW HAMPSHIRE
New Hampshire Adopts Workplace Accommodations for Nursing Mothers
“New Hampshire will guarantee the right of nursing mothers to an unpaid break of 30 minutes to pump for every three hours of work beginning July 1, 2025. This new state law comes in the wake of the 2022 federal PUMP Act, which requires employers nationwide to provide employees with reasonable break time to express breast milk for one year after a child’s birth.” Full Article
– Jackson Lewis P.C.
- Published in Blog