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Today's Key Question:
Would you like to hear how a seasoned medical professional, and expert on life insurance underwriting, views the changes in the industry?
See the article below from Broker World.
"How to Brainstorm — Remotely"
* In the age of Covid-19, many of us are no longer working together in the same rooms — but we still need to generate ideas collaboratively. Fortunately, even in a remote environment there are several approaches that can help you solve complex problems effectively.
"Opinion: Employers start to suspend their 401(k) match"
* The question is how quickly employers will resume their 401(k) match. An analysis of the 2008-09 suspensions showed the main motivator was liquidity constraints in the face of a recession and a banking crisis. The picture is quite different this time around. Yes, liquidity is a problem, since hotels, providers of travel, and retailers cannot sell their products. But this time, the collapse is of greater severity, so more employers may end up taking the more drastic step of furloughing employees (which suspends all retirement contributions by definition).
"State and Local Governments Need Some Tough Love From Uncle Sam"
* Then there's the issue of poor planning on the part of many states. My Mercatus Center colleague Tad DeHaven and I have written about this issue. We highlight the moral hazard that comes from systematically bailing out institutions, whether they are state and local governments or private companies. When bailed out, decision-makers have much-reduced incentives to plan better for the next time around. There's also the fact that, contrary to the common refrain from journalists and states themselves, these governments have increased spending quite considerably since the last recession and failed to plan appropriately for the next time they're inevitably in trouble.
But there's another argument against bailing out state and local governments that has surfaced recently. A report from the National League of Cities in May revealed that the states weren't very good at getting the money to local governments. Also, a new dataset collected by the Department of the Treasury Office of Inspector General that looks at how much the state and local governments have spent of their coronavirus relief bill funds as of June 30 shows that they have spent much less than you might think.
"Medical Underwriting: The Times They Are A-Changin’"
* Facility of application is becoming the buzzword of application. The relationship oriented business is being left behind for the client-friendly online submission that may take 10 minutes of an individual’s time. Hubs where a client can submit a general application and have it immediately shopped out to ten different companies, particularly for term insurance, are becoming the norm. The playing field shifts from medical underwriting to pricing, and companies who were more client intensive may be left at the starting gate in the eternal search for the lowest price. It is the “Amazonization” of purchasing insurance, and it appears likely to be the new standard going forward.