The success of 4A's Benefits continued in 2012. The Workers Compensation program continues to set records, and many agencies took advantage of the DOL's Fee & Expense disclosure by moving to the low cost 4A's Retirement Plan. Overall, 4A's Benefits saved member agencies an estimated $11 million dollars in 2012 through program dividends and discounts.
• Workers Compensation Insurance - The program had yet another record year, increasing insured employees from 102,000 to 116,000, and covered payroll growing from $7.1 billion to $8.3 billion. In July, the program's Board of Directors declared a 45% dividend based on 2011 performance. Over the last 10 years, an average dividend of 40% has been returned to program members. With 75% of 4A's members participating, this model allows members to take advantage of lower claims experience and expenses associated with the 4A's program.
• Health Insurance - 2012 was the first full year member agencies were able to take advantage of the solution offered through GMAC Insurance to provide health insurance through a national account insurance platform, usually available only to Fortune 500 organizations. This solution, which brings plan designs customized to the advertising industry along with a rich array of ancillary benefits, has been adopted by a number of 4A's Benefits customers – and the overall feedback of the CIGNA platform and its services has been extremely favorable.
• Retirement Plan Services - The Department of Labor's regulation requiring fee and expense disclosure was implemented in 2012. Under the new rule, fee and expense information must be transparent in a standardized methodology and format. Since the regulation's implementation in mid-year, 4A's Benefits has seen a steady stream of agencies moving to the 4A's Retirement Plan after witnessing the fees and expenses they were being charged.
• Group Insurance Programs - Participation increased in 2012 as many agencies replaced high cost, individually underwritten Short-Term Disability policies with lower-cost, guarantee issue group insurance.
• Professional Liability Insurance - 2012 continued to see an uptick in agencies binding coverage for optional endorsements including Cyber Liability, Security and Privacy Liability, and Crisis Management and Public Relations. With advertising dollars continuing to shift from other mediums to the interactive space, education on proper coverage in this area remains a priority.
• Management Liability Insurance - Management Liability insurance program participation continues to increase with employers seeking to minimize risk in the handling of employee benefit plans and personnel issues. Restructuring policies to include D&O Insurance, Fiduciary Liability, and Employment Practices Liability under one set of limits along with an additional 15% discount for participation in the 4A's Retirement Program continues to advantage members. Savings for members continues to average about 30%.