Voluntary Benefits Voice - December 2023

December 2023

Voluntary Benefits Voice M A G A Z I N E

The Future of Wellness Benefits

The Proposed Federal Triagency Rule

Market Update: Identity Theft

Advisory Board

Mark Rosenthal PwC

Seif Saghri BenefitHub

Jessica DePhillips Mercer

Michael Naumann Reliance Matrix

Jack Holder EBIS

Jennifer Daniel Aflac

Michael Stachowiak Colonial Life

Key Contributors

Steve Clabaugh CLU, ChFC

Editorial Staff Editors Trevor Garbers Heather Garbers For Media and Marketing Requests Contact: Heather@voluntary-advantage.com and Trevor@voluntary-advantage.com

FEATURED ARTICLES 01 Market Update: Identity Theft Insurance 02

Understanding the Dynamics of Identity Theft Protection Purchases

03 What Does the Future Hold for Wellness Benefits?

04

The Proposed Federal Triagency Rule & a Post-Chevron Landscape

05 Is it Human Sense or Horse Sense?

Identity Theft Offers Protection in an Increasingly Digital World

The Evolving Benefits Broker-Employer Relationship

The Sudden Resurgence of LTC Insurance

From the Editor...

What a year it has been...

From starting as an idea of, wouldn’t it be great if we had an organization in our industry that brought us all together as a community, facilitated the sharing of thought leadership, pushed innovation, and gave our industry a voice... to the creation of Voluntary Advantage with thousands of followers across the U.S., the monthly publication of the Voluntary Benefits Voice, a virtual conference, and a Speaker Series... This past year has been a whirlwind of growth both for Voluntary Advantage and for us personally.

Some of my favorite highlights are: Sharing insights from so many people across the industry in the Voluntary Benefits Voice publication Hearing “I am new to the Voluntary Benefits Industry and your publication is helping me to learn this side of the business” Being told by a new contact that I should follow this new company called Voluntary Advantage because “they are really changing the industry” Listening in on our monthly Advisory Board discussions with a group of individuals who did not all know each other when we started, but shared an incredible passion for our industry and are now friends The new friends we have made along the way (shoutout to some of our favorite LinkedIn influencers Seth Haight, Kerry Connor, and David Hoxworth)!

By Heather Garbers

We are also to excited to announce these updates that you’ll see in 2024...

Through our partnership with NABIP, a team from our Advisory Board worked hard to revamp the Voluntary / Workplace Benefits certification! There will be a live virtual session in February and a prerecorded version available 24/7 - we highly recommend visiting NABIP to learn more! You do not need to be a NABIP member to go through the certification, but there are great benefits to becoming a NABIP member.

We greatly value their support of the industry and all of their efforts advocating for our industry from the legislative perspective.

Hunter Sexton, JD, MHA, has accepted a role on our Advisory Board starting in January 2024. Hunter is a Compliance Consultant with Sydney Consulting Group, LLC. and we are excited to have his perspective on the team.

Our next virtual conference will be March 11-13 - MORE DETAILS TO COME! As we come to a close on 2023, we want to thank you all for your support, thoughts, ideas, and more! We wish you all a happy holiday season and best wishes for the new year.

Identity Theft Insurance Offers Protection in an Increasingly Digital World

By Eastbridge Consulting Group, Inc.

Online shopping, cell phones and credit cards make life easier for millions of Americans — but they also make it easier to fall victim to identity theft and fraud. The Federal Trade Commission reports recorded instances of identity theft have soared by 584% over the last 20 years. Credit card fraud is the most common type of identity theft with nearly half a million cases reported last year, while more than 422 million people were impacted by data breaches in 2022 — a 44% jump from 2021. And it’s costing us a lot of money: $20 billion last year, according to a report by Javelin Strategy & Research.

It's no surprise, then, that identity theft protection insurance has become a popular voluntary benefit.

In fact, it has the highest sales potential index — calculated by comparing the percent of employers that don’t offer it and the percent interested in offering it on a voluntary basis — of all nontraditional insurance products.

Employee ownership of identity theft protection is the highest of all additional products, according to Eastbridge’s 2023 “Market Vision™—The Employee Viewpoint©” report. Ownership of these voluntary benefits hasn’t quite recovered to prepandemic levels, possibly due to inflation pressure on employee wallet share.

Employees who don’t own identity theft protection show a strong interest in buying it, even if they have to pay the premiums themselves: Of the 80% of employees without this coverage, 45% are interested in purchasing it on a voluntary basis. That level of interest is significantly higher than employees mention for other additional products.

Employers have an opportunity to create more competitive benefits packages without affecting their bottom line by offering identity theft protection.

The 2022 “Market Vision™—The Employer Viewpoint©” study shows 73% of employers aren’t currently offering this coverage. Only 2% of those that do offer it pay the full cost of the premiums, and another 12% share the cost with employees.

Brokers name identity theft protection as one of the top two nontraditional products they sell, according to this year’s “Voluntary Benefits: Brokers Back in Business” Spotlight™ report. More than half of voluntary brokers — 56% — say they sell it on a regular basis. Benefit brokers list it second at 46%, just behind wellness programs.

Nick Rockwell President

Danielle Lehman Senior Consultant

Carriers offer identity theft protection more than any other nontraditional product except mental health benefits, and tied with financial wellness tools and programs. Carriers most often build the benefit into another product, according to the 2022 “Voluntary Product Trends” Frontline™ report. They also often offer this coverage through partnerships with specialty providers, which sell the majority of identity theft plans.

Identity theft can have serious, long-lasting effects for those who fall victim to it. In an increasingly digital environment, identity theft insurance can offer valuable protection for employees, and an important benefit addition for employers, brokers and carriers.

Eastbridge is the source for research, experience, and advice for companies competing in the voluntary space and for those wishing to enter. For over 25 years, they have built the industry’s leading data warehouse and industryspecific consulting practice. Today, 20 of the 25 largest voluntary/worksite carriers are both consulting and research clients of Eastbridge.

Identity Theft Insurance: Market Update

By Heather & Trevor Garbers December is National Identity Theft Awareness and Prevention Month.

Let’s start with, what trends are you seeing in employerbased identity theft coverage today?

This is a valuable newer benefit in our marketplace that can be offered to protect the financial security of employees, in addition to enhancing the corporate cybersecurity of their employer. How big of a problem is identity theft today? Here are some staggering statistics from the National Council on Identity Theft Protection: There is an identity theft case every 22 seconds Total annual losses are currently estimated to be $10.2 billion 33% of Americans have faced some form of identity theft at some point in their lives nearly 3 times higher than in other countries Consumers aged 30-39 were the most victimized The market for identity theft protection services is expected to reach $28 billion by 2029

Jason - Artificial Intelligence (AI) is playing a bigger and bigger role in criminals' efforts to steal identities and commit fraud. As of now, criminal AI efforts don’t really change the type of fraud, but rather the speed and sophistication of their attempts. It is becoming increasingly easier to impersonate someone’s speech and email patterns or even their voice. Scammers are becoming adept at social engineering. Criminals are beginning to build victim profiles that heighten an individual's emotions and pressure points. Finally, even for those with identity theft coverage, the lack of subscriber utilization of key features that are designed to prevent fraud is the thing that truly prevents the effectiveness of identity theft protection. Remember, reducing fraud and the subsequent stress along with improved productivity is the overall basis for offering identity theft protection as an employee benefit. The importance of employee utilization cannot be underestimated; product innovation alone is not enough.

We’ve brought in several experts on identity theft solutions to talk about the market today including: Jason Steed (Vice President, Sales & Business Development Leader at Equifax Workforce Solutions), Shelby Gartner, (Vice President, Sales – Broker Partnerships, TransUnion), and Cord Rotondo (Vice President of Sales, Norton LifeLock Benefit Solutions).

Shelby - More and more employers are taking an active interest in educating employees on cyber risks and digital hygiene. In 2024, I believe we will start to see more emphasis on employee education and training than we have in the past. More employers are recognizing just how large the human risk element really is – even by conscientious, well-meaning employees.

Shelby - As today’s cybersecurity defenses become more advanced, threat actors find it easier to breach individuals using social engineering rather than systems. The human attack surface poses significant challenges, which is why 75% of security pros named social engineering as the most dangerous threat. In fact, Verizon found that nearly 73% of all breaches in 2022 involved a human element. By making employees aware of the risks that exist and providing them with the information, insights and tools needed to counter those risks, employers can help both their business and their team members.

Cord - The identity theft protection services market is headed towards an immense upward trajectory; the market is projected to reach $31.98 billion by 2030, up from a 2022 valuation of $11.45 billion. This growth is largely fueled by skyrocketing cybersecurity threats and an increased reliance on credit cards, as well as the continued digital revolution, especially in emerging economies. As people are doing more and more of their financial activities online, the risk of running into credit card and bank fraud is increasing.

The continued rise and evolution of cyber threats are becoming increasingly important for employers.

Nowadays, our personal and work lives are so intertwined online that it makes all of us extremely vulnerable to cybercrimes, like those social engineering scams that trick people into disclosing their private information. This is where companies may want to look for an identity theft provider who also offers a strong cyber insurance policy. Employers offering a benefit package that includes both robust identity theft protections and cybersecurity services are proactively safeguarding employees' personal information and finances from cybercriminals or other online threats.

An increasingly popular type of cybercrime is ransomware attacks. This is where hackers hold your data or devices hostage. Ransomware attacks can drastically affect employees, both personally and at work. Ensuring cyber insurance is part of an identity theft protection plan can help cover the costs of navigating extreme ransom demands and can help fix systems or data that was compromised. In a world where our digital lives are getting more complex and riskier by the day, offering this type of coverage as an employee benefit isn’t just a nice-to-have; it’s becoming a must-have. It’s all about keeping employees safe and secure in the wild world of the internet.

How can Identity Theft coverage help to enhance a company’s cyber protection?

Cord - Identity theft protection has evolved to become a crucial line of defense, helping to guard against the pervasive risk of data breaches that threaten both individuals and organizations. Offering this protection as an employee benefit serves a dual purpose: it not only helps to ensure the online safety of employees, but it also reinforces the company's cybersecurity infrastructure, which as we all know can be at risk from an employees’ digital activities and their personal devices accessing company email and data. It has been reported that 68% of employees are using personal devices for work.

In today's business environment, the value of investing in identity theft protection services for employees is unmistakably evident. It acts as an early defense mechanism, warding off the potential chaos caused by data breaches, which often lead to significant financial loss and impact employee morale and focus. In 2022, it took identity theft victims 20.7 hours on average to resolve the fraud, and about half of that time was spent trying to resolve it while on the clock at work*.

*Based on an online survey of 505 U.S. adults who experienced ID theft in 2022, conducted for Gen™ by The Harris Poll, January 2023.

Cord - Providing this safeguard not only makes a company an attractive employer but also plays a key role in retaining top talent with comprehensive benefits in a highly competitive job market. Moreover, in a time where remote work has become a norm, extending a company’s security reach into the various digital environments of employees’ home offices is not just smart, it's essential. For businesses planning for their future, integrating identity theft protection into their employee benefits is a strategic move, reflecting a deep commitment to their employees.

Premium employee benefit identity theft plans have many risk mitigation features baked in that can help reduce risks, such as: a password manager, personal VPN, antivirus and malware software, and dark web / breach exposure monitoring. Enhanced capabilities like automated removal of employee data from data broker sites also help to reduce threats from scams.

We are beginning to see how human resource and security teams work together to assess and promote identity theft protection plans to increase the corporate security posture.

Shelby - When an employee’s personally identifiable information (PII) is exposed, there can be an increased security risk to their employer. While most people know they shouldn’t reuse their passwords on multiple accounts, research from Last Pass showed that 65% of people admit to doing it. Combine that with the fact that 50% of people told TechRadar they use the same passwords for both personal and work accounts, and it’s clear to see how the exposure of an employee’s credentials becomes a security risk for the organization.

Given this information, it makes sense for an employer to fund the cost of identity protection for their employees. What portion of your clients do you estimate are employer paid vs voluntary today?

Organizations in both the private and public sector are increasingly offering identity protection services as an employee benefit. It shows employees the organization’s concern for their well-being and — given the general concern about identity theft — offering the service can help build trust and loyalty among staff. Just as important, it demonstrates how the organization values cybersecurity. When offered as an employee benefit, identity protection can generate greater cyber awareness and instill better cyber habits among employees. Those stronger cybersecurity habits naturally carry over to their work, helping reduce incidents on the job.

By empowering individuals with the knowledge and tools needed to safeguard their identity information, companies can generate real benefits for themselves — reducing the risk of that data being misused for scams, fraud or security breaches.

Jason - Companies are focusing on improving the cyber resiliency and awareness of their employees.

Studies show that between 75% to 95% of corporate data breaches stem from human error. With more employees working from home and some companies adopting “bring your own device” policies, this adds strain on networks and security teams to thwart growing cyber threats.

Shelby - Roughly 41% of our book of business is employer paid. This is largely attributed to our valuable Breach Response Services that are complimentary to all employers when they choose to fund identity theft protection on behalf of their employee population.

In addition, more than 56 million people reportedly had their personal data compromised in the first half of 2023 alone — and each of those individuals are now at risk of identity crimes. The potential impact on their workplace and employers can be significant.

As a result, employers are increasingly looking to help their team members protect themselves against the impact of data breaches regardless of where they occur.

Jason - Historically, about 8-10% of employee benefit plans are employer funded. However, in recent years we have seen that trend rise. 2023 has seen both an increase in the number of employer-funded programs and in employers asking brokers and consultants to help mitigate breach activity and internal fallout. We are also seeing risk departments engaging HR personnel more frequently when trying to mitigate breaches. As cyber security efforts become part of most companies core requirements, identity theft protection and its effective utilization can show a true return on investment for employerfunded programs. Providing an ROI model is becoming as important as any other core employee benefit. Identity theft protection vendors must continue to enhance their reporting capabilities to effectively measure KPIs like threats blocked and incidents resolved. As this effort improves, we will likely see an upward trend in employer-funded identity theft protection benefits.

What are things to look for or avoid when evaluating options for Identity Theft Coverage?

What creates a quality product for the member?

Jason - First and foremost, as with any plan or benefit, make sure there are features present that fight against identity fraud. Although identity thieves are getting more creative, the fact remains that the bulk of fraud happens at the credit and financial institution level and can be reduced with minimal effort.

A plan should provide as many day-one options (nothing for the employee to actively “turn on”) as possible to best prevent fraud in those high fraud volume areas. Second, make sure that the entire family has access. Helping minor and elderly family members can be just as stressful and time consuming as addressing your own identity fraud issues. Third, the remediation and service experience is key. When dealing with personal financial matters, it is important to get help fast, any time (day or night), and to know your requests are being securely fulfilled.

Finally, find a vendor that has effective plans to drive utilization and engagement with the product. If employees don’t engage with the product and utilize many of the features, the value the employer is looking to deliver will be lost.

Cord - Key characteristics of these services should include proactive and extensive monitoring of credit, financial, social, and personal information across diverse platforms and databases. Your vendor should offer immediate, detailed alerts for suspicious activities and provide robust support for identity recovery, encompassing legal and financial assistance. Furthermore, a top-tier service should include comprehensive insurance coverage, including real cyber insurance to offset financial losses from identity theft and social engineering, a user-friendly interface, updates that adapt to counter emerging threats, educational resources for employees, transparent pricing, executive/c-level coverage, and dedicated support teams both for the broker and the employer.

Brokers should be cautious of services with: limited monitoring scope, delayed threat alerts, insufficient or small recovery support teams, inadequate insurance coverage, poor device security, complicated interfaces, and substandard customer service.

Providers making exaggerated claims about total prevention of identity theft should also warrant skepticism. The ideal service should offer a balance of extensive protection, ease of use, effective support, and educational resources.

Shelby - Be sure to understand what features are truly differentiators, addressing unmet needs of employees as it pertains to identity theft and fraud.

Conversely, identify and understand features that are portrayed as differentiators or as cutting edge but in reality are already available to employees and their families through other providers for free. A quality identity theft protection product arms employees with the knowledge to create better habits and to fully understand their current and potential vulnerabilities.

Considering how consumers have gotten used to personalized experiences, a solution that provides practical, hyper-personalized guidance is highly desirable. The inaction often seen in consumers responding to identity and cyber risks is not really caused by laziness but rather confusion. When TransUnion surveyed those who were concerned about identity safety but did not take any recent action to improve it, 50% said they didn’t act because they were unsure of what to do. A solution that can truly personalize an action plan (rather than offer general, sometimes contradictory recommendations) stands a much better chance of being effective and engaging.

Are there identity theft situations in which a vendor might not be able to assist or might exclude?

Cord - It’s important to note that not all identity theft insurance is created equal, and some may not cover all types of money lost to cybercriminals. Depending on the terms of your insurance plan, you may need to pay some costs upfront that were incurred during the identity recovery process. It’s important to review claim limits (number of occurrences paid, number of claim submissions, individual vs. family limits, and sub-limits) and find a provider that covers expenses on your behalf to avoid personal out-of-pocket expenses. With the rise of cybercrime, it’s never been more important to review cyber insurance options as well. You’ll want a fully comprehensive plan that covers ransomware (both amount and expense reimbursement), Social Engineering, Cyber Bullying, Data Recovery/System Restoration, and Digital Crime Currency.

Jason - As with any benefit or product, always read the terms and conditions carefully or work with a 3rd party expert who understands the appropriate way to ask the questions about exclusions and who also understands fraud type incidence volume.

Jason - Most times, employee-approved transactions are not recoverable; however, quality vendors will still help the employee navigate the resolution process.

Fraud to one’s business is also not typically covered.

Again, quality vendors will provide some level of preexisting fraud event resolution and reimbursement.

However, the terms around timing will often vary.

Shelby - Pre-communication and enrollment strategies determine whether participation falls short of or exceeds this standard. Vendors that provide partners and clients with a robust suite of materials ranging from flyers, videos and blogs to live webinars and drip email campaigns, can help you grow both participation and utilization in identity theft coverage.

What type of participation results can you expect from a typical group? What factors will help to increase participation?

What do you predict the marketplace look like in 12 years?

Jason - Participation levels vary based on several key factors: employer type, level of employer communication support and benefit administration system capabilities (ie. decision support tools, evergreen enrollment capability). On average, we see between 15-20% voluntary participation. With consistent executive support communicating the fact that identity theft protection plans improve the overall risk profile of the organization, both participation AND utilization levels will increase.

Shelby - Participation levels often vary based on industry. As a standard, we expect between 20-35% participation during the initial enrollment period and incremental increases of 5-10% in renewal years to follow.

Shelby Given the heightened awareness surrounding the human risk element, I predict that more customizable trainings and employer benefits will emerge to meet the market at its greatest need.

Similarly, the evolving threats associated with AI will result in an iteration of “Cadillac Plans” containing more robust, and therefore more costly features. This makes pre-communication even more important.

Arming employees with the knowledge necessary to determine what plans, features and functionalities are right for them and their families will help to guide them in their selection.

Cord - In the next 1-2 years, the employee benefits landscape for identity theft protection is poised for significant evolution and expansion. More companies are expected to integrate identity theft protection into their benefits offerings, recognizing its vital importance in today's digital landscape. Providers are likely to introduce advanced monitoring and protection technologies, including AI and machine learning, and place greater emphasis on employee education and training. Personalization of plans to suit diverse employee needs across the globe, and evolving regulatory influences are also anticipated.

Furthermore, I think the integration of identity theft protection with other cybersecurity measures, such as secure VPN and device security for employees, will become table stakes. The attention to the psychological impact of identity theft suggests the market is set to evolve towards more comprehensive, user-friendly, and integrated solutions conducive to the modern workplace and other compliance related activities.

Jason - As opposed to growing the laundry list of identity theft features that do not really address the bulk of the fraud problems, success will be dictated by those who branch out from a narrow focus on personal identity theft protection to that of a holistic approach. In other words, the marketplace will be led by those organizations that are able to continue to enhance the value of their protection to employers and employees. While developing and applying new AI techniques will undoubtedly help us stay ahead of criminals, those vendors that broaden their approach to introduce differentiated data and address digital safety will do the most good in the industry. Said another way, the industry will see greater overall security advancement as identity theft protection vendors appropriately leverage existing products and services tied to broader based risk/cost reduction efforts like onboarding, offboarding and other compliance related activities.

Thank you to our experts who provided feedback on Identity Theft Coverage in the employee benefits marketplace this month!

Shelby Gartner, Vice President, Sales – Broker Partnerships, IdentityForce, a TransUnion Brand – lives in Overland Park, KS and has spent 12 years immersed in the employee benefits industry, providing consultative solutions to partners in search of differentiated value through the implementation of both product and services. The immediate past 4 years have been spent educating partners as to identity theft and fraud related threats, including how to improve upon existing digital hygiene practices, fraud prevention measures and breach response strategies.

Cord Rotondo, Vice President of Sales, Norton LifeLock Benefit Solutions - Cord Rotondo stands at the forefront of pioneering Cyber Safety and Digital Wellness solutions for employers. His dynamic approach involves deep collaboration with benefit brokers, administrators, leading technology platforms, and major corporate clients. Leveraging his extensive background as a broker for diverse organizations, both public and private, Cord brings a unique and insightful perspective to the table.

Jason Steed, Vice President, Sales & Business Development Leader at Equifax Workforce Solutions - Prior to this role Jason held various leadership positions in the employee benefits consulting community including executive roles at both Brown & Brown & Beneplace.

Understanding the Dynamics of Identity Theft Protection Purchases: Demographic Influences Explored

By John Allen, EOI Service Company

Identity theft is a rising concern in today’s “cyber” age. As we all become increasingly dependent on the internet, the risk of personal identifiable information (PII) falling into the wrong hands is greater than ever before. Additionally, continued work-from-home is driving increased numbers of attacks on home computers and networks. In response to this threat, identity theft protection continues to gain in popularity.

According to Eastbridge Consulting Group’s (Eastbridge) Large Case Market Report, the percentage of companies offering Identity Theft plans ranges from 32% - 46%, with the highest rate found in cases with 2,500 - 9,999 employees.

Eastbridge’s report also shows Identity Theft as one of the most commonly offered nontraditional voluntary benefits.

32-46%

In this article, we explore the various demographics that influence purchasing decisions related to Identity Theft Plans.

Age Groups: Varied Perspectives Different age groups present varying levels of interest in identity theft protection. Young adults, particularly those in the 18-34 age bracket, are among the most likely to purchase identity theft protection. Young adults are more active online and are more likely to share personal information on social media. As a result, they recognize the need for added security in order to safeguard identity.

Older adults, especially those over the age of 55, are also displaying increased interest in identity theft protection. This can be attributed to a growing awareness of the risks as well as a heightened need to protect their retirement accounts and financial assets.

the percentage of companies offering identity theft coverage (Eastbridge)

Income Levels: A Determining Factor

Prior Experience: Shaping Choices

Income plays a significant role in the decision to purchase identity theft protection. Individuals with higher incomes often have more to lose and, as such, are more inclined to seek out plans to protect themselves from potential threats. Middle and upper-middle-class families select identity theft protection as a means to protect their financial stability and assets. Lower-income individuals may be less likely to purchase services due to budget constraints.

Personal experience with identity theft can influence an individual’s probability of purchasing protection services. A prior victim of identity theft or an individual who knows someone who has fallen victim are more likely to take proactive measures to protect themselves. Having firsthand experienced the stress, financial loss, and time-consuming processes these individuals are more likely to purchase identity theft protection.

Family Status: A Contributing Factor Geographical Influence: A Pivotal Aspect Geographical location can also influence the buying trends of identity theft protection. Urban areas with higher population densities often have more cases of identity theft reported, which can lead to increased demand for identity theft services. Rural areas are increasingly being targeted as online transactions are not limited by geographic boundaries.

Education Action

and

Awareness:

Catalysts

Family status can also influence the decision to purchase identity theft protection. Parents, in particular, are concerned about protecting their children’s personal information, making these households more likely to elect identity theft protection. Additionally, those responsible for caring for elderly family members or individuals with disabilities consider protection services as a must have plan.

for

Education and awareness about identity theft can significantly impact purchasing decisions. Individuals who know and understand the risks associated with identity theft are more likely to purchase identity theft protection. People with higher levels of education typically understand the potential consequences of identity theft, making them more likely to seek out protection services.

Conclusion: An Intersection of Influences Age, income, location, education, personal experiences, and family status intricately weave into individuals' decisions to acquire identity theft protection. As the cyber landscape continues to evolve, so do the strategies to mitigate the looming threat of identity theft.

Evolving Benefits for Evolving Threats In tandem with the evolving cyber threats, the need for adaptive and responsive benefits becomes paramount. Continual evolution and innovation in protective measures stand as our strongest defense against the ever-adapting landscape of cyber threats.

John Allen is President of EOI where he executes and develops strategic marketing initiatives on a national level, specifically focusing on the enhancement of value-added services that EOI provides for its clients. Since joining EOI in 2009, John has played a key role in the area of strategic marketing, building an outstanding implementation team in the Chicago office and tripling sales in the Midwest region.

What Does the Future Hold for Wellness Benefits?

By Heather Garbers

Wellness benefits are a hot topic in our industry.

They typically pay the member $25-$100 (once per covered person, per year) for completing a covered health screening. Our friends at Sydney Consulting Group have shared that $15 is the average annual rate load to a policy when a $50 Wellness Benefit is offered. In the eyes of the insurer, this is a benefit worth paying as it will hopefully lead to health interventions and earlier stage diagnosis that will help to avoid larger claims for untreated conditions down the line.

Sounds great right? What could be the downside of getting a portion of your premium back each year for completing a health screening, which we should all be doing anyways? Many people successfully use this as a bribe to get their spouses to actually get that annual physical. Some in our industry spend more time educating employees on the benefit of these wellness benefits, than on the benefits of the actual supplemental health product they are offering. We also know that Wellness benefits continue to be positioned and marketed in our industry as double dipping tax schemes, which are fraudulent in the eyes of the IRS. You can learn more about these in this article from Aflac, and I encourage everyone to be aware of these, too good to be true, “tax savings” strategies, know how to identify them and avoid them.

Personally, I see the value of offering wellness benefits on supplemental health plans not only based on how they promote preventative treatments and literally save lives, but also how they help with persistency rates. Employees tend to cancel coverage they “do not use” (forgetting that they initially purchased coverage to prepare themselves for an unexpected medical event, which isn’t likely to happen every year), where a $25-$100 benefit for completing a covered health screening results in them “using” the plan each year.

Then if a covered event happens, they have a benefit that will help them to remain financially stable and pay for treatment.

On the other hand, we also know that unfortunately, many times wellness benefits go uncollected as employees forget to file their claims. This is improving as carriers and the brokerage community are banding together to make the claim process easier for the member. We are seeing more widespread adoption of auto-filing this benefit based on a census from the employer, claim nudges, and claim integration to be the new standard in the marketplace, but we still have a long way to go. What we do know is that carriers that will auto-file wellness benefits based on completion of corporate bio-screenings or who follow the honor system for filing wellness claims (no EOB required), do see much higher utilization on these benefits.

An even more pressing issue on this topic, is that States are starting to push back on wellness benefits on supplemental health policies. This could be due in part, to frustration with regulating the double-dipping tax schemes out there or that some states view wellness benefits as duplicitous of ACA preventative benefits and thus not necessary (although anyone who has mentioned a health concern during their annual wellness exam can attest to there still being a cost for these visits). California has historically scrutinized wellness benefits and now, Michigan, New Jersey, New Mexico, and Virginia are some of the states starting to take a hard line against approving these benefits on supplemental health plan filings.

Chubb has also differentiates itself through value-add “wellness benefits” on its supplemental health products, such as: “Best Doctors” and “Health Champion Resource” services on their Critical Illness plan, which offers personalized and confidential assistance from health professionals, to help insureds find the best medical care and provide access to professional trained financial advisors, claims advocates and medical travel assistance.

Chubb’s Diabetes benefits also help employees to modify their behavior upon a Diabetes diagnosis, with help to pay for smoking cessation, nutrition counseling, and gym memberships.

What is the future for wellness benefits? Does the current structure meet the needs of today’s consumer?

How should, or could, we enhance the standard fixed dollar benefit to provide a more meaningful benefit to the member?

These alternatives to the traditional fixed dollar benefit can be viable options for the future of wellness benefits in our industry. Services that members can use throughout the year, that impact their wellbeing, that could replace the current fixed indemnity benefit option. Some other ideas that could have value for the member include: Mental health services Caregiving support for both the member and loved ones Genetic testing At home lab testing for general health, food sensitivity, etc.

Nutrition counseling with discounts on healthy meals Travel assistance Marketplace where they can redeem points each year to select the option that best fits their lifestyle and need

A view on the next generation of Wellness benefits comes from Chubb. Their strategy is to bring new and innovative solutions that embed wellness and advocacy services to better meet the needs of today’s employees and their families. Janet Buzil, SVP, Product Innovation & Delivery, offered to provide us with insights into their Cancer Advocate Plus (CAP) benefit that was released earlier this year, and goes well beyond your typical insurance offering. Not only does CAP encourage a focus on wellness by helping people understand their genetic inclination to cancer, but it also offers a personalized concierge service to help people understand and manage their outcomes.

As all cancer results from a genetic mutation, the CAP program also provides further advanced testing and support services to help identify more effective and timely treatment in the case of a cancer diagnosis, helping to speed and ease the road to recovery. It’s much more than an insurance benefit, it’s breaking new ground in how a comprehensive insurance program, with inherent preventive and treatment services, can improve health and wellness outcomes, while also mitigating the rising costs associated with cancer treatment.

As it comes to the future of the current indemnitybased Wellness benefits, only time will tell if the current model remains competitive in the marketplace… or we may have some State DOI’s make that decision for us.

Heather Garbers, SVP Voluntary Benefits, HUB International - is responsible for driving Voluntary Benefits strategy at HUB International (8th largest insurance broker in the world / 9th largest employee benefits broker in the U.S.). In addition to her role at HUB, she is CoFounder/Editor of Voluntary Advantage - created by the Voluntary Benefits industry, for the Voluntary Benefits industry; was named one of the “15 Women In Insurance You Need to Know” by LifeHealthPro” and was named Voluntary Advisor of the Year by Employee Benefit News.

The Proposed Federal Triagency Rule and a PostChevron Landscape

By Hunter Sexton, JD, MHA

I. Current Regulatory Unfavorable

Environment

has

been

It is no secret that the recent insurance regulatory environment has decidedly been anti-industry. This is especially true for supplemental health benefits. We’ve experienced a marked uptick in state regulators prohibiting entire benefit categories (Wellness is one notable example), promulgating onerous new regulations, and relying more heavily upon ambiguous statutory language to achieve desired outcomes. The culmination of this increased regulatory pressure is, of course, the federal government’s proposed rule on Hospital Indemnity and Other Fixed Indemnity Plans (Federal Register Document Number 2023-14238 at XXX).

II. Federal Tri-Agency Proposed Rule on Hospital and Other Fixed Indemnity Plans On July 12th, 2023 the Internal Revenue Service, Employee Benefits Security Administration, and The Department of Health and Human Services published a Notice of Proposed Rulemaking that sent shockwaves through the supplemental benefits community; proposing drastic changes to Hospital Indemnity benefit design, and asking the public for comments about a potential similar future rulemaking for Specified Disease (Critical Illness) plans. There are two major policy aims of the proposed rule with respect to Hospital Indemnity and other fixed-indemnity excepted-benefits plans. First, is a “clarification” of tax treatment for noncoordinated benefits, wherein the agencies claim that all benefit amounts received from claimed excepted benefits are taxable. Next, is the agencies’ desire to reduce consumer confusion between comprehensive major medical health insurance and Hospital Indemnity plans.

Regarding the proposed tax changes, the agencies’ position represents a marked departure from the “excess benefit rule,” the standard by which most currently contemplate tax liability associated with these plans. Under the “excess benefit rule” the only amounts considered “income” for purposes of taxation are any amounts beyond what makes the insured whole. For example, let’s say John Insured has a major medical plan with a $500 copayment for an Emergency Room visit and a $100 indemnity benefit for an Emergency Room visit. Under the “excess benefit rule” the $100 indemnity benefit is not classified as income subject to taxation because it does not exceed Mr. Insured’s financial loss (he’s liable for the $500 copayment, so has lost $400 in total). By contrast, under the proposed rule, the $100 benefit amount is fully taxable as income. Clearly, this change threatens to undermine the value proposition of supplemental health plans.

To achieve the goal of distinguishing Hospital Indemnity plans from comprehensive major medical coverage, the proposed rule significantly limits Hospital Indemnity benefit design by prohibiting: i) any benefits that include severity distinctions; ii) any benefits whose payment is contingent upon receiving treatment; and iii) any benefit that is not constructed to pay a fixed daily amount per day of hospital confinement or disease.

If these changes are finalized, Hospital Indemnity plans will have no space for innovative benefit designs that meet the diverse needs of the market. By restricting benefits to only per-day hospital confinement, the proposing agencies have effectively sentenced Hospital Indemnity to “death by boredom.”

It begs the question: how the heck did we get here?

How do non-legislative government agencies have the power to promulgate such wide-sweeping laws? For that answer, we must revisit the landmark 1984 Supreme Court case that many tout as having created the administrative state: Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.

If these changes are finalized, Hospital Indemnity plans will have no space for innovative benefit designs that meet the diverse needs of the market. By restricting benefits to only per-day hospital confinement, the proposing agencies have effectively sentenced Hospital Indemnity to “death by boredom.”

III.“Chevron Deference” The questions the Court grappled with in Chevron were how to test whether an executive agency’s regulation is Constitutional, and when an executive agency has exceeded its rulemaking powers when promulgating regulations. The Chevron Court understood that agency lawmaking powers are necessary for effective governance of complex modern issues. After all, Congress can only do so much through statutory law, and Congress cannot be expected to be subject matter experts on every issue. Executive agencies, by contrast, can be staffed by permanent civil servants with specific subject matter expertise, and in doing so, are well positioned to oversee nuanced, complex, and evolving issues in their areas of expertise like technology, environmental protection, and insurance. But the Chevron Court also opined that because lawmaking powers are granted to the Legislature and not the Executive branch in the Constitution, executive agencies rulemaking powers are limited by Congressional statutes. Essentially, these agencies are granted limited powers over their specific areas by Congress. For example, the Environmental Protection Agency has a statutory mandate to preserve natural undeveloped environments through its enabling act, but also was granted additional authority to specifically regulate Waters of the United States through the Clean Water Act. Recognizing the interplay in these important aspects of modern governance, the Court found the answer to its questions in the now-infamous “Chevron two-step” test. The first prong of the test is whether or not the Congressional statute empowering the agency with regulatory authority was ambiguous to begin with. If there is no ambiguity to what Congress intended, an agency’s regulation must strictly adhere to Congressional intent, or it is deemed unconstitutional.

However, if a Court finds there is ambiguity in the statutory language, it moves to the next step in the test. The test’s first prong is relatively straightforward and, until Loper Bright Enterprises v. Raimondo, hasn’t been the source of major controversy.

The infamy of the “Chevron two-step” is found in the second prong of the test which asks: “is the regulation reasonable?” This “reasonability” standard for agency rulemaking powers was immediately chastised by dissenting Justices for affording far too much deference to executive agencies in making new law.

After all, “reasonable” is a low bar to meet. Reasonable doesn’t require the regulation to be good, or effective, or even fair. When one puts their mind to it, anything can be construed to be reasonable. So, detractors of this standard would ask – is this a standard at all?

Combined with Courts’ presumptions that executive agencies are subject matter experts, the extremely low legal standard for “reasonability” created what is referred to now as “Chevron deference;” the current legal paradigm wherein agencies are empowered to interpret ambiguous laws and to push, and perhaps exceed in some cases, their legislative boundaries when making new rules and regulations.

IV. The Proposed Tri-Agency Rule is Lawful Under Chevron’s Reasonability Test There are numerous and substantive issues with the Tri-Agency Rule that leaves it ripe for legal challenges. Firstly, challengers may argue that the “clarification” on tax treatment for non-coordinated benefits is actually a new tax by suggesting treatment that departs from the long-standing “excess benefit rule.” By doing so, the agencies have exceeded their regulatory authority because taxpowers are reserved solely to the Congress.

Challengers are also likely argue that the proposing agencies have failed to meet rulemaking requirements of the federal Administrative Procedures Act by: i) not supporting the proposed rule’s changes with substantial evidence (the evidence provided was non-scientific and anecdotal); ii) not considering reasonable alternatives (like stricter enforcement of marketing practices); and iii) failing to provide a robust costbenefit analysis (agencies did not consider heightened consumer costs due to reduced benefits in their analysis). Furthermore, challenges may argue that the proposed rule imposes “undue burdens” on key stakeholders like carriers and state regulators due to the extremely truncated 75-day window between final rule promulgation and its effective date.

While these challenges may delay the rule’s promulgation and even force significant concessions from the proposing agencies, legal challenges may still have a steep hill to climb with respect to Chevron deference. If challenged, the agencies are likely to lean heavily on this doctrine and claim that the rule’s proposed changes reasonably address the issues of mis-taxation and consumer confusion. Given that the agencies start from a position of subject-matter-expertise, it is possible that Courts will “defer” to the agencies under the Chevron doctrine, finding most (if not all) the proposed changes to be constitutionally valid.

But what about a standard that is something more than “reasonable?” Would the proposed rule survive legal challenges in a world where the Chevron twostep is abandoned? Interestingly, that world may be on the horizon.

V. Current SCOTUS Challenges to Chevron: Loper Bright Enterprises v. Raimondo Chevron and the progeny of cases drawing from Chevron to afford more power to executive agencies have been consistently and vociferously derided by conservative legal scholars, both academically and through formal dissenting opinions. Chevron critics espouse that the “reasonable” standard is too ambiguous for Courts to apply properly or consistently, as what constitutes “reasonable” for one judge may significantly deviate from what their peer considers “reasonable.” Worse still, the deference Courts afford to agency rulemaking unconstitutionally strips the Judiciary of its central role in our system of governance: to interpret and apply the law. For the most part, these arguments have been little more than footnotes in the history of how administrative law has evolved. But perhaps, that’s about to change.

The Supreme Court has picked up a series of administrative law cases in its current term, most notably Loper Bright Enterprises v. Raimondo, which involves a challenge to an executive agency regulation and the application of Chevron deference. While Raimondo purports to examine the previously less controversial question of “ambiguity,” many SCOTUS watchers are pointing to this case as having the potential to end Chevron deference.

Considering the political makeup of the current Supreme Court, we share in the optimism that the days of Chevron deference may be numbered, presumably being replaced with a higher legal standard for administrative rulemaking.

VI. Implications of a Post-Chevon Regulatory Landscape Regarding the proposed Federal Tri-Agency Rule, it becomes much harder for agencies to defend the legitimacy of the proposed rule against likely legal challenges without the protection afforded by Chevron deference. It stands to reason that if the rule is already hard-pressed to meet a low “reasonable” standard, it will fail to meet a higher legal standard. In a post-Chevron landscape, the proposed rule is likelier than not to be dramatically revised, if not abandoned outright.

While a revised or rebuffed Tri-Agency Rule would certainly be a welcome start, the implications of a higher legal standard for administrative rulemaking are even broader for insurance regulation. Though Chevron is federal law, its holding has found its way into the machinations of state-level rulemaking processes, which of course, has fueled the recent zealousness in state-level insurance regulation. Thus, in a post-Chevron landscape, it is reasonable that the reverse will also be true, with stronger legal constraints around agency rulemaking flowing through to other administrative exercises of power (e.g. issuing guidance documents, reliance on highly ambiguous “fairness” statutes, etc.).

Nothing is written in stone, of course. The proposed rule is presumably still being finalized by the proposing agencies, and the Loper v. Raimondo decision may not be published until October 2024. That said, a postChevron regulatory landscape is certainly worth the wait. Stay tuned!

Hunter Sexton, JD, MHA, Compliance Consultant, Sydney Consulting Group Hunter leads a best-in-class Regulatory Compliance Team that works with carriers and regulators to bring supplemental health and life products to market. Hunter earned his Masters in Healthcare Administration from the University of South Florida’s College of Public Health and his Juris Doctorate from Stetson University’s College of Law. Hunter came to Sydney Consulting after 12 years of industry experience with major medical carriers that included sales, marketing, plan operations, and finance.

The Evolving Benefits BrokerEmployer Relationship

By Ron Neyer, M.B.A., AIRC, CLU, ChFC

Employee benefits brokers are valued, but their role is evolving rapidly toward strategic services.

This was one of five megatrends emerging from the landmark “Harnessing Growth and Seizing Opportunity” research jointly conducted by LIMRA and EY in 2021. Many signs at that time suggested that brokers were bringing a more strategic approach to clients and quickly embracing changes to remain in step with changing client needs.

Market dynamics have further evolved over the past two years. As COVID-19-specific concerns have faded, many of the prominent workforce trends accelerated by the pandemic remain.

These include the use of inde­pendent contractors, the rise of the gig economy and the emergence of remote and hybrid work arrangements. New worker needs also surfaced, particularly in areas such as mental, financial and physical wellness. How do brokers fit into today’s ecosystem?

Current Picture LIMRA and EY partnered again earlier this year to uncover current workplace benefit trends.

We surveyed 830 private U.S. employers with at least 10 employees. Roughly 4 in 5 of these businesses currently work with an outside broker/benefits advisor for assistance with their insurance benefits. Most employers highly value these relationships, with about 70% very or extremely satisfied with the services provided by their broker (a rating of “6” or “7” on a 7-point scale). They also expect to continue working with their benefits professionals, with 35 percent anticipating a greater reliance on brokers in five years’ time (again a top-two rating on a 7-point scale; up from 26% in 2021).

Once a differentiator, digital benefit platforms are now table stakes in the fading-pandemic landscape. While different sources provide technology to employers, more than 2 in 5 now use broker-provided platforms for their insurance benefits — either solely or alongside a carrier or third-party provided platform. These employers express higher satisfaction levels with benefit platforms coming from their advisor compared to similar tools provided by carriers or third parties, with 7 in 10 very or extremely satisfied. Over half expect to be at least somewhat more reliant on broker technology in five years.

Change on the Horizon?

At the same time, a potential shift in the distribution landscape is gaining more traction. Although highly valuing their brokers, employers appear increasingly willing to obtain insurance benefits in the future without assistance from these professionals (Table 1). The interest in direct purchasing now tracks consistently across employer-size segments, whereas it was greatest among larger establishments in 2021.

It seems that employers are sending mixed signals. Many expect to develop deeper relationships with brokers over time, so why would they consider a self-directed approach regarding their benefits plans? Several factors are in play, with potential cost savings being the top rationale. (Table 2).

However, this growing independent mindset appears deeply rooted. More than half feel that the quality of their overall benefits program could improve without assistance from intermediaries.

Businesses with higher percentages of younger employees are most inclined to feel this way. Their workers likely have greater interest in newer types of offerings such as wellness programs, student loan assistance and paid family leave. While many brokers are undoubtedly currently discussing these options with clients, some longer-tenured professionals may be reluctant, preferring to focus on the traditional insurance plans.

A slightly lower majority of employers are comfortable with their market knowledge and ability to make benefits decisions. These businesses tend to have lower concentrations of young workers and are longer tenured.

While brokers likely helped them make decisions in the past, they now feel empowered to make changes on their own.

Time, technology and carrier relationships also factor into the growing willingness of employers to shop for insurance benefits without assistance from a broker. Again, no significant differences emerge based on group size for the various motivations for exploring a direct approach.

Employers are also contemplating this arrangement for a wide array of benefit types. While medical is most often cited, many are also interested in testing the waters for core nonmedical insurance plans and/or supplemental options.

Implications Looking ahead five years, the broker-employer relationship will remain deep and continue to evolve. This puts pressure on benefits professionals to continuously enhance their skill sets and strategies to maximize their value to clients.

Employers’ needs are changing, and they expect more help from advisors in some areas and require less assistance in others. The brokers who embrace a strategic approach, and focus on helping clients with emerging, high-value tasks such as navigating digital tools and new benefit options will continue to thrive, at the expense of those clinging to older, more transactional models. To remain a trusted resource, brokers need to understand how employers expect the future of benefits to unfold.

Originally published in LIMRA LOMA MarketFacts digital magazine, December 2023

Ron Neyer, M.B.A., AIRC, CLU, ChFC, Associate Research Director, Workplace Benefits Research LIMRA and LOMA - is an experienced and well-respected research professional, specializing in the distribution of workplace insurance benefits. His work at LIMRA LOMA allows their member financial services companies to monitor industry trends and formulate marketing strategies.

The Sudden Resurgence of LTC Insurance

By Marc Glickman, FSA, CLTC

It has only been about 15 years, but long term care (LTC) insurance is popular again. All of us in the LTCi biz knew this might be inevitable. After all, we can see the demographics writing on the wall. There are over 50 million family caregivers in the United States. They can only do so much until professional home care or facility care is needed. The collision of baby boomers needing care, states paying attention to the crushing need, and the impact on family caregivers has made LTC insurance popular again, well, sort of.

You may have heard this story: Without LTC planning, extended care is paid out of pocket. Once income and assets are depleted, Medicaid kicks in. But what happens when Medicaid runs out of money?

The year is 2021. Washington State is ground zero with the second highest cost of home care in the nation.

Leaders in the state can see a crisis on the horizon. As a result, Washington passed a law requiring an LTC payroll tax on all W2 employees who do not own private insurance. With a deadline set for six months after passage of the law, a fire sale ensues. The result was the sale of over 400,000 LTC or hybrid policies in a single state in six months. In the prior year, less than 100,000 policies focused on LTC were purchased nationally, a generational low.

One group hybrid LTCi carrier sold nearly 200,000 policies, or $100 million of premium, representing almost half the policies in Washington.

While an incredible stat, the one that may be more incredible is this same carrier sold over $100 million in 2022, without a payroll tax looming. There was continued demand for this product.

Next up? Possibly California, New York, or Minnesota.

We’ll have to stay tuned.

New LTC Funding Solutions The group hybrid LTC market is growing 50% per year.

Carriers are paying attention, and other states are as well. As I mentioned, California and New York are slowly exploring their own payroll taxes, as are as many as 30% of all other states according to a recent Nationwide study. There are many more carriers entering the market with LTC riders on their group life policies.

These new options are popular not just because of the payroll taxes. They nailed a target market: Guaranteed issue underwriting, affordable price points of $500 to $1,000 per year, easy to access product offerings through education and enrollment through employers and associations.

LTC insurance as a starter plan through the employer helps the 97% of Americans who currently do not own long term care insurance. The best way to help someone get comprehensive coverage in the future may be to get them a smaller plan now and continue the conversation through additional education.

Whether you’re already offering LTCi as a benefit option or not, you will feel the impact of the demand.

When your neighbors, friends, families, and clients start asking you about the insurance offered through their employer, what will you tell them? Do you believe the policies are too small to make a difference? You might want to take another look.

A Closer Look at Guaranteed Issue Products Let's look at these LTC extension riders for the masses.

You may be surprised by what you can get for $1,000 per year on a guaranteed issue basis. One of the most popular products in the individual LTC market is a Life insurance hybrid that not only accelerates the death benefit, but also extends LTC coverage once the death benefit is exhausted. Following in those footsteps, these features have become popular on group products too. For $1,000 per year, you not only get a $100,000 death benefit if you don’t need long term care, but should you run out of coverage over 25 months, you might get another 25 or maybe even 50 months of additional coverage for $300,000.

An Opportunity to Build Your Business What can you do to participate in this market growth?

First, realize that this is new to many employer groups or associations. The great news is that we are starting to see more press on the long-term care challenges (and more family conversations) and there are various solutions available to these groups. We see guaranteed issue carve out solutions for as few as 25 executives at price points that are affordable for employers to comfortably fund the entire group. Your individual clients may be business owners and whitecollar professionals, who you already help with life, annuity, or disability income planning. Funding a plan for 25 of their colleagues on a guaranteed issue basis is within reach.

As more carriers enter the market and more states take further steps to implement their own LTC payroll taxes, it is inevitable that this market will continue to surge. What are you doing to prepare yourself for the resurgence of LTC insurance? Using the employer market to educate more Americans about long-term care planning seems to be a strong strategy.

Value plus ease of access is driving this renaissance in LTC planning solutions.

Marc Glickman, FSA, CLTC, is CEO and co-founder of BuddyIns, a leading long-term care and hybrid insurance technology company - Marc is also an actuary and has served as the Chief Sales Officer for a major LTC insurance company. Marc can be reached at marc@buddyins.com, by phone at 818.264.5464, or by visiting www.buddyins.com/partner.

Is it Human Sense or Horse Sense?

By Steve Clabaugh, CLU, ChFC “Ride Like a Knight” (RLAK) is the therapeutic horsemanship program of St. Andrews University in Laurinburg, NC. St. Andrews was the first university in the U.S. to establish a degree program in therapeutic horsemanship. Since 1998 they have been providing free and low-cost therapeutic horsemanship lessons to people with disabilities and special needs. Lessons are taught by student instructors under the direction of Melissa Abbey.

Voluntary Advantage chose RLAK as one of their charities to support in 2023 and the result of your contributions helped enable 6 students to accompany Melissa to this year’s international PATH convention where they enjoyed some outstanding educational opportunities and made contacts that will be very important to their careers. Thank you to all who contributed to help make this experience possible.

Melissa is an Assistant Professor of Therapeutic Horsemanship and the Director of Ride Like a Knight.

Trained in Equine Facilitated Psychotherapy, she is a Certified Therapeutic Riding Instructor and Equine Specialist in Mental Health and Learning. Widely recognized as an expert in her field, Melissa is an active member, leader and frequent program presenter of the Professional Association of Therapeutic Horsemanship International (PATH).

She is also a really great person who loves her student instructors, riders, horses and volunteers.

It is my privilege to spend a few hours a week as a volunteer at RLAK. My tasks are simple: walking beside riders helping them to be secure in the saddle; grooming and walking the horses; helping with turnout at the end of the day and whatever else might need to be done. I always hope that my small participation is helpful to the program. I know the rewards received are far beyond anything I might contribute.

Bentley (pictured here) plays a key role in helping individuals who are afraid of horses get acclimated to them

Melissa has invited me to speak to her classes a couple of times where I have been able to incorporate some of the principles of Relational Leadership as applied to recruiting and working with volunteers and fundraising to support therapeutic horsemanship programs. After one such class, she observed that many of the principles of therapeutic horsemanship are quite similar to those of relational leadership. In fact, she chose to use some of those as part of one of her lectures at this year’s PATH conference.

She listed several important relational principles and asked her audience to see if they could identify which were based on what I call human sense, and which were based on horse sense. Give it a try and see if you can tell which is which. I’ve edited some of them to prevent them from being too easy for you.

1. “They don’t care how much you know until they know how much you care” - Pat Parelli 2. “We can improve the relationship by leaps and bounds if we become encouragers instead of critics” - Joyce Meyer 3. “Your knowledge, patience, determination, understanding and love. That’s what fuses you into this marvelous partnership” - Monica Dickens 4. “When you’re jiving and it’s good, even if nothing else in your life is right, you feel like your whole world is complete” - Keith Sweat 5. “When you’re confident, you can relax and enjoy your relationship” - Clinton Anderson 6. “Seek first to understand, then to be understood” - Steven Covey RLAK Director, Melissa Abbey (second from right) with her students who recently attended the PATH International conference

Pictured above & below - The final day of semester, each rider receives a ribbon

How well did you do? If you chose #’s 1, 3 and 5 as horse sense and 2, 4 and 6 as human sense you got it right.

Either way, it’s easy to see how closely related they are.

It is my firm belief that in virtually every human endeavor, including that of humans and horses, it is the relationships that are important. Making it a priority to build and take care of those relationships is what matters most in our families, the workplace, and wherever else you may go – including the stable.

As Melissa reminds us with virtually every communication she sends out: “Treat your horses as well as you treat your people, and your people as well as you treat your horses.”

To learn more about the RLAK program you can google Ride Like a Knight or St. Andrews University. As always, feel free to contact me if you have questions or want to learn more about how the Relational Leadership Experience can benefit your organization or employer clients.

RELATIONAL LEADERSHIP EXPERIENCE Can it Help Your Employer Clients?

Your employer clients are facing new and different challenges in today’s business environment including: Remote Work - Returning to Office Diversity - Equity - Inclusion Geopolitical Uncertainty - Cultural Conflicts The timeless principles of Relational Leadership can help your employer clients navigate these issues as they grow and prosper their business.

Relational Leadership Experience helps your clients: Create and build high-performance teams Select and train the right employees Implement effective mentoring Develop positive conflict management Determine and implement the best outcomes Achieve ongoing growth and success In-person, online and combination programs available to meet the needs of your employer clients.

To learn more about Relational Leadership Experience Contact: Steve Clabaugh, CLU, ChFC at sjcsr@hotmail.com or 910-977-5934

Steve Clabaugh, CLU, ChFC - started his career in insurance as a Field Agent, moving on to Sales Manager, General Manager, Regional Manager, Vice President, Senior Vice President, and President/CEO. A long time student of professional leadership, Steve created the Relational Leadership program that has been used to train home office, field sales associates, mid-level managers, and senior vice presidents.

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