Securian Financial: Minnesota Life Insurance Posts Research Results [Professional Services Close – Up]

According research conducted last summer by Minnesota Life Insurance Company, purchasing and administration procedures used by cities, counties, school districts and other small government employers vary widely.

According to a release, Minnesota Life is the third largest US group life insurer and the largest subsidiary of Securian Financial Group, Inc.

Minnesota Life Group Insurance is represented in the small public sector employee market by Ochs, Inc., a benefits brokerage and consulting firm. Ochs formed The Municipal Pool that gives small-to medium-sized public employers the same insurance buying advantages as large employers. It offers life and AD&D products underwritten by Minnesota Life and administered by Ochs, Inc.

"The Minnesota Life study shows there's no one way to approach small public employers," said Cambra Aasen, president of St. Paul, MN-based employee benefits broker Ochs, Inc. "Some of them purchase employee benefits through associations, some issue requests for proposal and others join a statewide buying pool."

Aasen says one common thread across the market is rising interest in voluntary benefits3. In a 2010 survey, nearly 90 percent of the 569 U.S. municipalities, states, educational institutions and other public entities offer - or were planning to offer - voluntary benefits. The most popular voluntary benefits offered in this market are dental insurance, long- and short-term disability coverage, and Medicare Supplement, according to a May 2012 study4.

"We also found that, for the most part, small public employers deploy little technology for benefits administration," said Aasen. "Carriers often perform services such as forms access, re- enrollment and billing. The smaller the employee group, the more likely the carrier will handle many of the administrative functions."

With regard to group life insurance, the study found that most group life offered by public employers:

-is paid by employees through payroll deduction,

-is guaranteed issue for new hires, and

-requires evidence of insurability for coverage that exceeds a cap.

More detail about employee benefit trends from the Minnesota Life study of public sector small employers is available in an article from the company's web-based monthly newsletter AWARE.

Securian Financial Group and its affiliates focus on providing financial security for individuals and businesses in the form of insurance, investments and retirement plans.

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