Captive Review has released a Q&A featuring our Chief Property and Casualty Actuary, Peter Johnson, where he explains the impact of inflation on insurance and risk management practices and how how it intersects with captive insurance. Check out the full Q&A here.
Title:
Director of Client Services/Brokerage Practice Leader.
Joined Spring:
I joined Spring in 2015, before Spring was acquired by Alera Group.
Hometown:
I am a New Englander through and through! I was born and grew up in Boston and lived in Jamaica Plain and Roslindale.
At Work Responsibilities:
As Spring’s Brokerage Practice Leader, I work directly with employers and carriers to implement top-tier employee benefits programs for employers of all sizes. Some of most common areas include group health plans, dental, life insurance, disability, and FSAs, HRAs & HSAs.
Outside of Work Hobbies/Interests:
I love being outdoors (when the New England weather allows!). Some of my favorite things to do outside of the office are hiking, fishing, boating, and sports.
Fun Fact:
Many people don’t know this, but I was actually an extra in the movie, “Blown Away”.
Describe Spring in 3 Words:
It’s very tough simplifying my nearly decade at Spring into just 3 words. But I guess I’d have to go with professional, caring, and reliable.
Favorite Movie/TV Show:
I enjoy the classics, my favorite movies are To Kill a Mockingbird and Casablanca.
Do You Have Any Children?:
Yes, I have two children, Ryan and Kaleigh, they’re both in their 20s now.
Favorite Food:
Italian and Japanese!
Favorite Place Visited:
Although these two places are almost polar opposites, my favorites are Italy and Alaska.
Favorite Band:
I love my 80s music, so I’ll have to go with U2.
Bucket List:
I really want to visit the Pyramids in Egypt.
If You Won the Lottery, What Would You Do With the Money?:
I would start a scholarship program for disadvantaged children, to help give them a full ride through college.
It seems like every year we are seeing new developments in the world of captive insurance on both the national and international scales. After recently attending The Captive Insurance Companies Association (CICA) 2023 International Conference, I wanted to share some of the hot topics on the minds of captive professionals around the world. As a board member of CICA and chair of CICA’s NEXTGen young and new professionals committee, I was excited to be so involved this year. The conference definitely did not disappoint; in addition to “extra-curriculars” like the golf tournament and brewery tour, the event also provided great opportunities for networking and learning about current trends and best practices in the world of captives and what the future holds for the industry. I hope you enjoy these highlights.
1. Regulatory and Tax Updates
As per usual, regulatory updates were a highly discussed topic during the conference. As a long-term attendee and speaker at CICA’s annual conferences (and other captive conferences alike), regulatory updates are always pertinent, as laws and best practices are constantly shifting, as seen in the following:
– In a session titled “The Lay of the Land: Captive Taxation,” speakers explored recent administrative, legislative, and judicial updates affecting captive taxation, with a focus on 831(b) small captives.
– Following the addition of 87,000 IRS agents (following the Inflation Reduction Act), a group of tax experts and a lawyer discussed how this will most likely impact audits of small captive cases.
– Three state regulators from North Carolina, South Carolina, and Oklahoma discussed updates we can expect to see from various domiciles during their session, “There’s a New Sheriff (Regulator) in Town.”
– On the second day of the conference, I presented on “What’s New with the DOL and Employee Benefits?”, where we delved into the upsides of writing employee benefits into a captive and how it intersects with DOL regulations.
2. Navigating Inflation
From eggs to rent, no sector can avoid inflation, including the captive/alternative risk financing arena. With that being said, controlling costs and reducing risk is a top priority for many employers across industries and around the world. This year I heard some exciting ideas when comes to addressing inflation, some of which included:
– The second session of the conference looked at innovative captive risk and finance tools captive owners should consider in the current economic landscape and how to mitigate uninsured risks often excluded in captive structures.
– Actuarial experts discussed how inflation will impact unpaid claim liabilities and future funding levels and approaches actuaries are taking to combat this. The session was titled “The Impact of Inflation and Other Economic Trends on Captive Programs.”
– In contrast to typical inflation sessions, one panel focused on social inflation, and reviewed how captive owners should prioritize safety culture, utilize user-friendly insurance technology, and ensure suitable hiring and retention practices.
3. The Captive Formation Process (Experiences from Captive Owners)
A couple sessions turned the tables and looked at captives from a different point of view: that of the captive owner. It was very interesting hearing from captive owners on their experiences with forming a captive and what goes through their minds during the process.
– The presentation, “Captive Formation Stories,” featured three captive owners and a moderator from Captive International, to discuss their internal strategies, domicile selection, and how their experience has been to date with their captive.
– Panelists from the “CaptiveLand: A Journey to Forming a Captive” session took a unique approach and styled the presentation like a board game (Candyland), helping risk managers navigate the obstacles and milestones when setting up and maintaining a captive. The panelists included two captive owners and a state regulator.
4. Shaping the Future Captive Arena
As the Chair of CICA’s NEXTGen young and new professionals committee, I was impressed with the focus CICA put on providing sessions and events aimed specifically towards young professionals looking to enter or grow within the industry. As regulations, best practices, technology, lines of services and more constantly change, it is essential that the next generation of captive professionals are equipped and ready to shape the future of the practice.
– One of my favorite parts of the conference was the CICA Student Essay Contest. University students were given 3 case studies to select from and wrote an essay on establishing a captive for their specific case study (including selecting policy options, determining underwriting and pricing, etc.).
– During the session, “Building Your Personal Board of Directors – Considerations During the Different Stages in Your Career,” speakers discussed the upsides to developing a personal Board of Directors to support career growth and how to get started.
– Finally, I spoke on a panel that discussed what NextGen captive professionals value most in a job. We looked at ways to combat the great resignation and how organizations can better align with young professionals’ career goals.
With many conferences under my belt, CICA never fails to provide a great platform for networking and sharing ideas, I am excited to see what the future has in store for the association and for captives overall. In the meantime, our team will continue to keep our fingers on the pulse of captives to assure we provide clients with industry-leading captive and alternative risk financing services.
As we transition past the pandemic, we are seeing shifts in remote, hybrid, and onsite practices across the US. Below are some of the top trends impacting workforces nationwide.
1Zippia. “25 Trending Remote Work Statistics [2023]: Facts, Trends, And Projections” Zippia.com. Oct. 16, 2022
2Alera’s EB Market Outlook
3https://globalworkplaceanalytics.com/telecommuting-statistics
4https://fortune.com/2023/01/25/workers-prefer-remote-first-roles-hybrid-work/
Our Senior Vice President, Prabal Lakhanpal, has recently joined The Captive Insurance Companies Association (CICA)‘s board of directors. He also currently chairs CICA’s NEXTGen Young and New Professionals Committee; check out the full article here.
During The Captive Insurance Companies Association (CICA)’s 2023 annual conference, our SVP, Prabal Lakhanpal presented on behalf of our Managing Partner, Karin Landry, during which he present on what next-gen professionals value most in in a job. You can find Captive International’s recap here.
Each year, I use International Women’s Day to share my reflections on what it has been like to be a woman leading in a male-dominated industry, to be the mother of a daughter, and to uplift women’s organizations and the efforts I believe are critical to empowering women professionally. This year, I wanted to focus on action rather than reflections, so I am mapping out a three-step process for women to help make sure they are paid fairly relative to their male counterparts.
Past Imperfect
Pay inequity and gender discrimination has been a problem since the workforce diversified to include women and people of color. Fortunately, recent legislation at all levels of government from state to federal have adopted policies to help prevent this kind of discrimination. In some jurisdictions like Connecticut, Delaware, Michigan, and Atlanta there are laws in place that prohibit employers from asking candidates about salary history. And in California, companies with 100+ employees are required to report pay data by gender and race.
The bad news is that even with all of these policies, a gender pay gap still exists. In 2022, according to the Census Bureau, women in the U.S. made around 82 cents for every $1 a man earns. In C-suite roles, the ratio is 75 cents to a dollar. In fact, data shows that with the current rate of progress, executive positions will not achieve gender parity until 2060.1
It’s time to change that.
What You Can Do
Hopefully your employer is practicing pay equity. However, it doesn’t hurt to do your own due diligence by following these steps.
1. Benchmark yourself against the market
First, do your research. If you don’t know how much others make in your field, how are you supposed to know if you are being fairly compensated?
Platforms like Indeed, Glassdoor, PayScale and Salary.com share data on average salaries based on job title and skillset. As you do your fact finding, make sure you consider factors such as location, years of experience, the size of your company, special degrees or certifications you have, etc. Sharing a title doesn’t necessarily make you an equal candidate. It is also important to consider incentives outside of your normal paycheck, such as stock or equity, bonuses, 401(k) contributions or pension plans, benefits and other offerings. If you have friends or family in a similar field, see if they are willing to have honest conversations about their compensation. Alternatively, maybe you know someone in HR or recruitment whose brain you can pick.
Based on market data and your experience and skill level, determine a “fair” salary band and see where you fall on that spectrum.
2. Ask for what you deserve and need
Be clear about what you want from your job and your company, and give them the chance to do the same. One of my biggest takeaways from being a woman executive is that men are not afraid to negotiate or ask for raises or other incentives, and women are often reluctant to do so. My advice is not to assume that you will be handed a raise even if you truly do deserve one, and that there are many things in life you won’t get unless you ask.
Consider how other incentives that your company can offer like flexible hours, remote or hybrid work, etc. may impact your value through your employer’s lens. Speak to your manager and understand what might be required from you to advance to a next level, or why you aren’t there now. Don’t let gender be the limiting factor.
3. Pay it forward
Join a women’s leadership or mentorship program to expand your network. Is there a group you can join at your organization? If not, consider starting one. Look outside your company to see if there are women’s groups you could benefit from joining. Leverage your network, and if you find that your network is small, prioritize growing it. If you have concerns about DEI practices at your company, voice them. If you have experienced sexism in the workplace, speak with your HR department and/or manager – speaking up is an act of service in and of itself.
We have made headways in the fight for pay equity. For the first time, Forbes reported in January 2023 thatover 10% of Fortune 500 companies have a female CEO. While a milestone and proven progress, I can’t help but wonder if we should really be celebrating 10%, and instead focusing our efforts on 50%. So, this International Women’s Day, I recommend all women take a more active role in achieve pay equity. Widespread change can start at the micro level.
No matter the product or service you’re selling, or the impact your business makes in your community or the world at large, the consensus is that the most important asset an organization has is its people. Our HR and Benefits colleagues know very well that keeping employees happy and engaged (and keeping them in general) is not only makes for a positive atmosphere, but is also a strategic business move. So maybe you’re celebrating Employee Appreciation Day with a grateful shoutout, or a catered lunch, but don’t forget to look at the bigger picture of the precedent you’re setting – whether intentional or not – with your benefits programs.
Physical Health
Beyond the “it’s the right thing to do” mentality, benefits that support employees’ physical health are important for another reason: unhealthy employees will be far less productive, if present at all. Take a look at your health plans to ensure affordability, access, and breadth of care. Components like dental and vision insurance should also be considered here. Beyond health insurance, many companies offer supplementary tools or services that promote physical health such as fitness reimbursements, point solutions for things like diabetes management or musculoskeletal issues, health coaching services, walking challenges, and more.
Mental Health
Mental Health America reported that nearly 20% of Americans were experiencing a mental illness in 2022. The World Health Organization (WHO) states that depression and anxiety cost the global economy approximately $1 trillion every year. While employers cannot solve the mental health crisis, many believe that they do have a responsibility to provide related resources and prioritize employee mental health in some way. At Spring, we recommend tackling mental and behavioral health through the lens of its three most common barriers: cost, access, and stigma. Any programs offered should try and solve for these. For example, does your health plan cover mental health related appointments? In addition, there are a wide range of services available in this area. Some companies bring in yoga instructors on-site. Alera Group provides Spring Health at no cost to employees, which offers complimentary digital therapy sessions, coaching, and other tools. Apps like Calm and Headspace provide guided meditation and anxiety management practices. Paid time off for mental health or built-in “breaks” during the workday, such as designated times when meetings are prohibited, can also help. Simple tactics like demonstrating openness to discussing mental health in the workplace can go a long way to lessen any stigma.
Financial Health
Especially in today’s economy, employees need help saving for retirement, investing wisely, and being financially informed and educated. We also know that financial stress can be related to mental health, so by focusing on financial health you can impact multiple components of employee engagement. At a basic level, leading employers offer a 401(K) or similar retirement savings plan, with an employer match. As a next level, tax-friendly benefits like Health Savings Accounts (HSAs) can be helpful, and there has been a lot of buzz around student debt repayment programs which employers can choose to contribute to or just offer as a voluntary benefit. Other voluntary benefits like life insurance, identity theft protection and short- or long-term disability insurance can contribute to an employee’s financial wellness. Other perks might include financial counseling services and educational seminars.
Equity
Do your employees in different states have access to the same paid leave? To the same reproductive healthcare? To the same disability coverage? Do your executives and your more junior team members have the same benefits and incentives? Do your programs address a diverse range of needs, accounting for factors like location, race, gender, and age? Equitable benefits send the message of appreciation to all employees and instill the feeling of fairness and compassion.
Career Progression
Most employers take pride in hiring ambitious and hard-working employees. Don’t let your corporate structure or practices inhibit that ambition. Employees feel appreciated when they have a clear path for growth and opportunities to step up. From a benefits perspective, this might mean incorporating mentorship programs, education or certification programs, tuition reimbursement, or formal training programs.
Employees should feel appreciated on a regular basis, and not just on Employee Appreciation Day. By making sure you have these five pillars accounted for in your benefits program, you can create a positive culture of appreciation and satisfaction.
Captive Review releases their annual Power 50, where they showcase top leaders in the captive space. This year, they selected our Managing Partner, Karin Landry, #7. Check out the top 10 professionals here.
