The Promise of More To Come:
U.S. Benefits Captives on the Verge of a Breakthrough
by Peter Bandarenko
Captive insurance has been an increasingly popular alternative risk transfer mechanism for U.S. companies for decades. But what may come as a surprise is that one of the great growth opportunities isn’t a new property or casualty exposure. It’s employee benefits. Some seemingly minor changes in the U.S. regulatory landscape may go a long way in explaining the renewed interest in employee benefits captives – but read on: Peter
Human-resources startup Zenefits may be falling short of its revenue targets and has apparently started to curb expenses, as it struggles to meet investor expectations. Zenefits had announced a target of USD 100m in annualized revenues to be reached by January 2016 but may fall short as August 2015 actuals are understood to be slightly under USD 45m, still a large increase compared to USD 20m in January 2015.
According to traditional financial theory, a firm’s value is a function of its existing net worth and of its future profits. The way in which stock markets value large, traditional, listed brokers appears to be consistent with this. The table below includes some of the largest brokerages / consulting firms in the world and was compiled on November 23, 2015. As of late November 2015, the five firms exhibit
MAXIS GBN moves to London,
hires new CEO from Generali,
and becomes a 50/50 AXA-MetLife joint-venture
Signaling an increased commitment to the global employee benefits industry, global insurance powerhouses MetLife and AXA in late October 2015 announced they will combine their existing MAXIS Global Benefits Network (MAXIS GBN) operations in a new co-owned joint venture company based in London. Mauro Dugulin, formerly CEO of Generali Employee Benefits Network (GEB), will serve as CEO. MAXIS has been headquartered in Paris and New York since its inception
The 1,500-participant, sold-out event in the Bataclan concert hall was sponsored by music production firm Universal Music Group, a division of Vivendi Universal, who had invited a large number of guests, mainly managers and executives from the advertising, media, music, and broadcasting industries. As soon as Saturday, November 14, most large French brokers and TPAs had set up rapid-response teams and call centers, providing psychological and other support to
In response to questions asked by several GBV subscribers and readers, our three team members who are based in Paris were not harmed in any of the November 13 terrorist attacks in Paris and its outskirts. While some had family members at the Stade de France soccer stadium, luckily none were injured in the bombings there. Sadly, Marc Signorel, CEO of our web agency OuterRim, lost two close friends,
Global Benefits Vision publishes in-depth articles written by global employee benefits experts for global employee benefits practitioners and is happy to welcome your contributions. Get in touch with the publisher at firstname.lastname@example.org. From the Contributor Guidelines Our mission at Global Benefits Vision is to make the accumulated knowledge and wisdom of the best experts available to all practitioners in an appealing, memorable way. Reading, learning, reflecting—and writing—are important parts
Zurich presented the “Zurich International Programs for Employees” at the October 2015 biannual meeting of the Federation of European Risk Management Associations (FERMA). The new product, to be launched in 2016, allows multinationals to manage their employee benefits coverages through a single global program, combining local policies with cross-border policies; as well as providing centralized data and reports. From a marketing standpoint, the new product is aimed squarely at
AXA Group’s AXA PPP healthcare unit in the UK in August 2015 launched its “Corporate Health Plan for Mid Corporates”, geared towards small-to-midsize businesses (SMBs) from 65 to 250 employees, that provides access to medical diagnosis and to approved treatments and drugs to get employees back to health and back to work quickly. Features usually reserved for larger groups include networks of quality-assessed healthcare providers: over 250 hospitals, 400
Theo Lutgendorff joined in November 2015 as partner in Sprenkels & Verschuren, Actuaries and Consultants, in Amsterdam. He previously worked at Zurich Global Life as global partnership director (2013-2015), and as head of the Zurich Employee Benefits Network (2010-2013). Before his roles at Zurich, Theo was active in the global benefits and pensions market as principal with Aon Consulting. Sprenkels & Verschuren is the largest privately held and independent
For many employers the largest liability related to employees after payroll-related cost is employee benefits. Subject to a turbulent and volatile past, now largely over, some management vestiges remain. Employers should examine the management of employee benefits and how tailored it is to their company’s current risk profile and cash flow. Certainly captives require more administration and an empowered internal advocate who can maximize utilization. But for mid-size and
The 2016 edition of the IBIS Academy will be held in Amsterdam, The Netherlands, from May 23 to May 27, 2016. For its 46th iteration, IBIS will include a new three-day Mobility track, devoted to Global Mobility and co-developed and co-hosted with AIRINC. IBIS Academy participants choose one of three distinct tracks intended for different audiences: the IBIS Institute, a “boot camp” for practitioners; the IBIS Conference, a series
Global Benefits Vision has been retained as the media sponsor of the 46th IBIS Academy, to be held in Amsterdam, NL, from May 23 to May 27, 2016. IBIS Academy stands for three distinct tracks: the IBIS Institute, a five-day training course in global employee benefits; the IBIS Conference, a three-day series of advanced presentations and panel discussions; the new Mobility track about global mobility. A few sessions are shared
Wendy Liu is the head of Zurich Global Employee Benefits Solutions since July 2015. Zurich Global Employee Benefits Solutions includes Zurich Employee Benefits Network (Zebn). Wendy is currently based in New York and will relocate to Zurich towards the end of 2015. Prior to her current position, she was Global Partnership Director for Zurich Insurance Company, Head of Central Deal Desk for Zurich Financial Services and Senior Consultant at
In June 2010, Benefits & Compensation International published an article by Ms. Le Men-Tenailleau on variable compensation for bankers. It focused on the employment and tax law aspects of the regulations issued by the French government in 2009 and 2010, following the Pittsburgh G20 summit of September 2009.
Executive pay is a high-profile topic and almost everyone has an opinion on it. Many shareholders, workers and politicians believe the entire system is broken and requires a substantial overhaul. But, despite being well-intentioned, their suggested reforms may not be targeting the elements of pay most critical for shareholder value and society.
Captive insurance has been an increasingly popular alternative risk transfer mechanism for U.S. companies for decades. But what may come as a surprise is that one of the great growth opportunities isn’t a new property or casualty exposure. It’s employee benefits.
Global Benefits Vision: What is AEIP’s mission in general terms and how does it relate to global employee benefits? Bruno Gabellieri: AEIP is mainly a lobbyist organization; it is registered as a special-interest lobby with the European Parliament and the European Commission. I am also registered with EIOPA as an independent member of the occupational pensions stakeholder group, because I’m the Secretary-General of AEIP.
Negotiating Across Cultures Sir Richard Lewis and Michael Gates The Promise of More to Come: U.S. Benefit Captives on the Verge of a Breakthrough Peter Bandarenko How CEOs should be Paid: Beware vesting periods! Alex Edmans Banker’s Bonuses: French Legal Aspects Stéphanie Le Men Interview Bruno Gabellieri, Secretary General AEIP: Expert facilitator serving European ideals
Mobility of workers in the European Union and related impact on social rights, by Francesco Briganti
Does it still make sense for a multinational company’s employee benefits plan to deal with 28 different social and tax legislations in the EU? Does it make sense for a multinational company to set up as many employee benefits plans as the number of the EU countries in which it operates? Plausibly, the answer is no. Yet that is exactly what happens in the European Union — and for
Broker’s Annual Health and Productivity Survey Tracks Employer Trends Employers offering health and wellness programs have moved beyond the standard financial measures associated health care cost savings towards a broader focus on the overall value of health management within a workplace, according to the Willis Health and Productivity Survey published today by Willis North America’s Human Capital Practice. According to the survey, nearly two-thirds of respondents (64%) with wellness
Swiss Re has appointed Urs Baertschi to the new position of President of Reinsurance, Latin America, reporting to Swiss Re Americas President and CEO Eric Smith and joining the company’s Americas Management Team. The appointment is effective January 1, 2016. Baertschi will split his time between Bogota, Mexico City, Miami and Sao Paulo offices. Previously, Baertschi was Managing Director, Head Principal Investments & Acquisitions Americas for Swiss Re and
From the October 2015 Baden-Baden Reinsurance Meeting. The consolidation of the reinsurance industry that is being observed in 2015 apparently is driven by capacity overload, successive years of rate declines and persistently falling profitability. But are mergers and acquisitions (M&As) the right answer? Of course, sheer scale matters but the upside of better mutualization hits its limits fairly quickly and unmanaged diversification is fraught with dangers. In fact, new
U.S. public health insurance exchange enrollment expected to grow in 2016 but may fall short of insurer needs
Enrollment in public health insurance exchanges is expected to grow modestly in 2016, to reach a total number ranging from 9 to 12 million. The majority of current customers – approximately 9 million – is expected to re-enroll. However, the Congressional Budget Office earlier had projected enrollments to reach 20 million by the end of 2016; the shortfall is most significant and the projected number of enrollees likely will
Shareholders of Aetna and Humana in October 2015 voted separately and approved overwhelmingly the health insurers’ proposed $37 billion merger. Aetna shareholders approved the issuance of up to 127 million common shares to Humana stockholders, who agreed to the terms of the July 2015 merger agreement with Aetna as finalized in July. The deal is expected to close in the second half of 2016 after the approval of state