Millennials really don’t want to work in insurance
The insurance industry, along with many other mature sectors, has an increasingly aging workforce and new research suggests that isn’t going to change anytime soon. A survey by Hartford Financial Services Group, parent company of Hartford Life and Accident Insurance Company, shows that many millennials have aspirations in very different careers. In its Millennial Leadership Survey The Hartford found that 80 per cent of millennials already consider themselves to be ‘leaders’ and the majority want to be leaders in the next five years.
However just 4 per cent said that they wanted to work in the insurance sector. That’s higher than the 3 per cent drawn to wholesaling and utilities but tiny compared to the 40 per cent that want to work in arts and entertainment and the 36 per cent hoping to be in education or technology industries.
“We are working hard to make sure millennials know that insurance offers a variety of career paths such as tech, big data and marketing, as well as flexible work and leadership development,” said Susan Johnson, head of diversity and inclusion at The Hartford. “We don’t want to miss out on future leaders simply because of misconceptions about the industry.”
ACE, Chubb executive vice-chairman appointed
ACE Limited has appointed John Keogh to the role of executive vice chairman. Keogh is currently vice chairman and chief operating officer. The firm says that he will remain in his new position, and as COO, following the completion of the acquisition of Chubb. Keogh joined ACE in 2006 after more than 20 years with
AIG. The Chubb deal is expected to complete in the first quarter of 2016.
Employers hold health benefits for tax reasons
The growth of employee health benefits was slightly lower in 2015 than in 2014 according to
Mercer. The 3.9 per cent increase in 2014 has dropped to 3.8 per cent and employers are weighing the impact of the excise tax (the “Cadillac” tax) which is a provision of the Affordable Care Act. The 40 per cent tax will come into effect in 2018. “For employers that want to maintain current benefit levels for their employees, there are a range of strategies to explore that can help control cost over the long term,” said Tracy Watts,
Mercer’s national leader for health reform. “But for employers with high-cost plans that aren’t what most would consider ’Cadillac’, that 2018 deadline is a tough challenge.”
As part of the trend to drive down the cost of employer-sponsored health plans they are moving quickly to implement telemedicine services; telephone or video access to providers; as a low-cost alternative to an office visit for some types of non-acute care. Offerings of telemedicine services jumped from 18 per cent to 30 per cent of all large employers.
Mercer’s analysis has also found that fewer small employers are planning to cut health benefits for employees than they were in 2013: “Employers know that health benefits really influence how employees feel about where they work,” said Beth Umland, Mercer’s director of research for health and benefits. “They want to continue to offer coverage, and with cost growth holding below 4 per cent they’re gaining confidence that they’ll be able to afford it.”
