Posts Tagged ‘Insurance’

How Comfortable Are We Getting With Disrupters?

Most Disrupters aren’t all that disruptive anymore. Everyone, including our children, have become quite comfortable with Disrupters and the positive impact they have on business and our everyday lives. A true Disrupter turns a product or service upside-down and inside-out.

Consider one of the biggest Disrupters in recent history — the personal computer. Think of life without Google…  More recently, consider smartphones, drones, smart watches, FitBit, Netflix, Nest, Uber, and Airbnb. Since their introduction, life has not been the same. Many of these companies have been incredibly successful. Today, we’re comfortably accepting these Disrupters with open arms and we’re hungry for more.

 

The Disrupter mentality and Silicon Valley.

Silicon Valley is home to some of the world’s most successful Disrupters. This continues to be true as many of the most visible Disrupters are technology-oriented.

In the first three months of 2015, venture capital (VC) funds invested $13.4 billion, much of it in the tech sector. Not since the dot-com era has there been such a run in VC funding and technology. Many young start-ups seeking funds are turning to crowdfunding and smaller investors, which is disrupting the very ground VC’s used to look to fund — Disrupters.

 

Two of the most successful Disrupters and their business strategy.

Sir Richard Branson, founder of Virgin Records, Virgin Airlines and Virgin Mobile, and Jeff Bezos, Amazon Founder and CEO, have a similar business philosophy: Constantly strive to improve the  customer experience. In fact, they have structured their companies to encourage disruptive thinking and innovation. Bezos has upended the book and publishing industry and nearly displaced electronics retailers. He continues to disrupt and reinvent online shopping and delivery by responding to changing technology.

“We innovate by starting with the customers and working backwards,” says Bezos. “That becomes the touchstone for how we invent. For Amazon, customer focus is a cultural issue.”

 

The “improve the experience credo” has sparked a revolution in business thinking that fuels most new Disrupter companies.

One of the biggest Disrupters of today is the smartphone. By its very nature, its features are designed to disrupt whatever we’re doing. As a mobile device they are indispensable and frustrating because we can’t seem to put them down. They have changed the way we communicate, live and do business.

Smartphones are also having a dramatic impact on many other businesses, both positively and negatively. Yet smartphones have also created a dynamic new business category — app design. They help promote shopping, banking, health and fitness, news, entertainment, restaurants and better communication between businesses and consumers, just to name a few.

 

Understanding how Disrupters are affecting insurance and employee benefits begins with big data.

The biggest Disrupter to date is big data and most agree that big data benefits customers by offering them tailored insurance and employee benefits programs for their specific experience, location and risk profile. Collecting this information is no easy feat: it means gathering financial, claims, risk, customer preference and sales data from multiple sources, then scrubbing and analyzing it, all while complying with protective regulations designed to safeguard the data and data-driven decisions.

IBM’s Big Data @ Work survey reported that big data’s influence in the insurance realm is strong: some 47 percent of insurers want to use it to develop customer-centric programs and another 66 percent are conducting or planning big data activities.*

Today, the use of these devices is ubiquitous. We’ve become so accustomed to formerly “disruptive” technology that it doesn’t faze us anymore.

 

At the heart of the trend is effectively aggregating the data … and we are doing that at Hays. 

We are on the edge of the big data trend, developing innovative programs and opportunities that will benefit our customers. At Hays, we have a proprietary technology platform that pulls together data. This allows us to audit the data, provide consistency of data extracts, show continuity of data across multiple vendors, simplify access to data through one portal, and reduce fees by eliminating ad hoc reports.

We help eliminate the “silos” that come from bucketing cost centers to give our customers a data-focused assessment of the true cost of employment.

 

The dark side of data.

When it comes to customer and employee privacy, however, we should never be complacent about the dark side of Disrupters.

Cyber terrorism and data breaches have shadowy technical roots in the so-called Deep Web and Dark Web, which most people don’t even know exist. Your company’s data is vulnerable through email links, apps, a compromised network, or a web download. But, the threats are not always through a coding attack. Hackers are increasingly using social engineering techniques to trick people into breaking normal security procedures because they think the phone or email contact is a trusted source.

That’s just the start. The rise of the Internet of Things (IoT) means personal data could be hacked or collected by cybercriminals in a way never before possible.

Does your wellness program encourage employees to use wearable fitness trackers or apps? Sure, they can improve employee health but there’s also a risk to private information: the FitBit cloud holding this personal health data has already been hacked, raising fears about their vulnerability. And that’s not even addressing their lack of Health Insurance Portability and Accountability Act (HIPAA) compliance.

With so many ways to hack into your company and your employees’ lives, it’s a top priority to have the best cyber security as well as the best insurance and employee benefits programs that protect your company’s people, property, data, reputation, and — ultimately — your bottom line, no matter what new Disrupter comes down the pike.

Technology is expanding at an unprecedented rate; there are new Disrupters in development that offer improvements and increased risks. Hays is at the forefront, watching the development and the impact on your business. We’ve always believed in providing the best resources available for our clients, so our representatives are prepared to provide guidance in managing the evolving  risks. We hope you call on us if you have any questions.

 

This issue is an excerpt from our quarterly FOCUS publication. If you would like to read more, you can request the full issue below.

The Latest Hays Compliance Department Updates

Recently, updated guidance has been received from the Federal Government with respect to the ACA, including release of updated health plan “Benefit and Payment Parameters” for 2017. For your information, we have summarized these updates below.

2017 Benefit and Payment Parameters:

On February 29, 2016,  the US Health and Human Services (HHS), Treasury and Labor Departments finalized rules addressing 2017 Benefit and Payment Parameters for essential health benefits.  The guidance issued is summarized in the linked “Fact Sheet”.  Highlights of the changes affecting health plans under the proposed rule include:

  • Annual out-of-pocket maximums for health plans (other than HDHPs with HSAs) will be indexed in 2017, to $7,150 for individual coverage and $14,300 for family coverage.
  • HHS proposes to “codify statutory language” defining whether a new entity that was not in existence throughout the preceding year is a “large employer” subject to the play-or-pay mandate.   The statutory language, when finalized, will reflect that the determine will be based on the number of employees it expects to employ on business days in the current calendar year.
  • The individual cost exemption for 2017 from the individual shared responsibility requirement will index to 8.16% of adjusted gross household income.
  • The Exchange open enrollment period for coverage beginning in 2017 and 2018 will begin November 1 and end the following January 31.  For coverage beginning in 2019 and subsequent years, Exchange open enrollment will be from November 1 through December 15.

Click here to find an ACA Compliance Bulletin that contains further details, for your reference. If you have any questions, please contact your local Hays Consultant.

Professional Safety Magazine Features Hays Risk Control Expert

The art of risk assessment requires more than just knowledge — it also requires creativity and imagination to successfully anticipate, recognize, assess and treat potential risks.

Organizations that harness these skills can develop more effective risk management strategies to bolster their strategic goals, says Bruce Lyon, Hays Companies Director of Risk Control, in the cover story for the March 2016 edition of Professional Safety magazine.

The article, entitled, “The Art of Assessing Risk: Selecting, Modifying & Combining Methods to Assess Operational Risks,” written by Lyon and co-author, University of Central Missouri professor Georgi Popov, Ph.D., asserts that highly successful organizations see the value of incorporating creativity to develop effective risk assessment strategies within their risk management plans and operational risk management systems.

The article dives deeper by presenting the sequence of assessing risk and the tools and methodologies used in the Risk Identification, Risk Analytics and Risk Evaluation process. To read more about the financial and non-financial benefits of risk reduction measures, click here.

Professional Safety magazine is published by the American Society of Safety Engineers, a global association of safety professionals founded in 1911. The professional safety society sets the occupational safety, health and environmental community’s standards for excellence and ethics.

ACA Reporting Deadlines Delayed

Today the Internal Revenue Service presented employers with an early holiday gift.

The IRS released Notice 2016-4 to delay the due dates for the 2015 information reporting required by the Affordable Care Act (ACA).  Specifically the notice extends the due dates for:

  • Furnishing the 2015 Forms 1095-B and 1095-C to individuals, from Feb. 1, 2016, to March 31, 2016; and
  • Filing the 2015 Forms 1094-B, 1095-B, 1094-C and 1095-C with the IRS, from Feb. 29, 2016, to May 31, 2016, if not filing electronically, and from March 31, 2016, to June 30, 2016, if filing electronically.

Filers are not required to submit any request or other documentation to the IRS to take advantage of the extended due dates provided by Notice 2016-4.

Despite the delay, employers and other coverage providers are encouraged to furnish statements and file information returns as soon as they are ready.

For more information on Section 6055 and 6056 reporting, penalties for reporting failures and impact on individuals, you may download our comprehensive compliance report here.

Hays Companies Opens New York City Office

Hays Companies, one of the nation’s fastest growing risk management, insurance and employee benefits advisors in the country, recently opened an office in New York, New York. This new location will allow Hays Companies to better serve existing clients and future partners in the Northeastern United States.

“Hays Companies strong, steady growth and our expanding national footprint is a real tribute to the talent of our people,” says Jim Hays, CEO of Hays Companies. “Our consultants have an exceptional ability to work with clients to generate great value.”

The New York City office is a natural extension of Hays Companies Northeast office system, which includes offices in Jericho, NY, Boston, MA, Nashua, NH, Morristown, NJ and Philadelphia, PA. “New York offers a strong platform for developing deeper relationships with a host of current and prospective clients throughout the Northeast. We’re excited to have a greater presence in this large and growing market and look forward to serving a range of new clients,” said Mike Egan, President of Hays Companies.

Hays Companies has been providing risk management services for over twenty years. The company was founded in 1994 through the entrepreneurial spirit of Jim C. Hays and five senior level individuals from major insurance brokerage firms. They were determined to fill the void of customer service and creative new ideas in the marketplace. Today their vision remains alive and well. Hays Companies has grown to become a nationally recognized insurance broker with over 700+ insurance professionals located in 35 offices. In addition, Hays Companies currently ranks as the 18th largest insurance brokerage in the country (as ranked by Crain’s Business Insurance).

For more information contact Andrea Field (afield@hayscompanies.com)