4A's Benefits designs and manages insurance and benefits programs exclusively for 4A's members.Health Insurance
The big story for all U.S. citizens in 2013 was the implementation of the Affordable Care Act (ObamaCare). While the goal of ObamaCare is to give more Americans access to affordable health care, there is no doubt healthcare costs will rise for many.
Our members have already felt the impact with renewal increases as high as 100% or more. Through our partnership with National General Insurance (formally GMAC), 4A's Benefits has been able to provide its members with a real alternative to fully insured market, often at rates less than what other carriers are able to deliver. Also, we are seeing carriers much less willing to "buy the business" (i.e. undercut pricing the first year to win business) as in the past, mainly due to significant increases in medical costs and the general uncertainty of the effectiveness of ObamaCare itself. 4A's Benefits has also leveraged its partnership with National General Insurance by having them participate in certain forums and councils, giving all 4A's members access to expert advice they otherwise may not be able to get from their current insurance provider. Retirement Plan Services
2013 was the first full year since the Department of Labor's 2012 regulation requiring fee and expense disclosure. Under the new rule, fee and expense information must be transparent in a standardized methodology and format.
As agencies began receiving expense disclosure information from their existing brokers or advisors, it became apparent to many that they were overpaying for their offerings and services. As a result, 2013 was a high growth year for the 4A's Retirement Plan as many agencies moved to our product. We expect the growth to continue during 2014 as more agencies analyze their retirement plan costs as part of their fiduciary due diligence.
The 4A's Retirement Plan goal is easy setup of qualified and non-qualified plans through a flexible program of administration, recordkeeping, and asset investment. Our role is to reduce administrative and investment expenses and increase plan participant returns through our unique program structure.Workers' Compensation Insurance
In July 2013, the 4A's Workers' Compensation Insurance Board of Directors announced a $10.6 million dividend to policyholders. This capped off another record year where covered payroll grew to $8.6 billion and insured employees increased from 116,000 to 127,000.
The program continues to dominate the market, insuring over 70% of the advertising and marketing industry. Participation ranges from start-ups to large holding companies. By spreading claims risk and administrative costs across such a large group, the 4A's Workers' Compensation Program continues to provide the lowest year over year net cost available in the industry.