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The long-term care issue is receiving plenty of attention – both from the explosive growth of LTC riders attached to life insurance, as well as several state and federal proposals.

Recenlty, the Senior Issues Task Force met to discuss long-term care trends, issues and long-term prognosis. The task force – a National Association of Insurance Commissioners’ group – is in information-gathering mode, members said.

The task force heard presentations from Bonnie Burns, training and policy specialist with California Health Advocates, and Steve Schoonveld, consultant with GCG Consultants.

“One of my concerns about these products is that the underlying life insurance product that has these benefits is often unclear as to how these benefits are integrated,” Burns said. “If there’s a rider or some way that the internal benefits in these policies trigger long-term care benefits, it isn’t clear to consumers how that happens, or how those benefits interact with each other.”

Booming hybrid sales

Sales of life policies with long-term care riders now comprise about a quarter of all life insurance sales. These hybrid policies have replace traditional LTC-only insurance to a large degree.

Twenty-seven percent of consumers said that a standalone LTC insurance policy was too expensive, LIMRA found, with life combination products a more attractive option. Over one quarter (26%) of American consumers would be extremely or very likely to consider purchasing life/LTC products, LIMRA found in its 2024 Insurance Barometer study, up from 19% in 2019.

The survey showed that 39% of millennials are very likely to consider buying a life combination product compared to 27% of Gen X and 17% of baby boomers.

Retirees who do not have LTC benefits can either rely on Medicare or self-fund any nursing home needs. For those who are not wealthy, it can mean a roll of the dice.

The baby boomer generation will begin turning 80 next year and the 2030s will bring a substantial demand for long-term care, Burns said. They will be followed by Gen X and millennials in the following decade, she added.

“The size of these combined generations will place even greater strain on what is today, an inadequate, disparate, unorganized way of getting and paying for care,” Burns said. “State Medicaid programs are rapidly feeling the effects of reduced funding, a growing worker shortage and an increased demand for care.”

Public-private partnerships needed

Task force members discussed the need for more public-private partnerships and innovative solutions to LTC needs. Burns and Schoonveld discussed the wide range and state and federal efforts to address the LTC issue.

Seventeen states are at some stage of a master plan on aging, Burns noted, of which long-term care is addressed. Likewise, several states have different ideas in different stages for a state LTC benefit. Established in 2019, the WA Cares program is up and running in Washington State and serving as a pilot program of sorts.

WA Cares is funded by a payroll tax of 0.58% on employee wages, which began in July 2023. The tax applies to all full-time, part-time, and temporary workers in Washington, with some exemptions. Self-employed individuals can choose to opt in.

Beginning in July 2026, eligible individuals can access a lifetime benefit of up to $36,500 (adjusted annually for inflation) to help pay for LTC services.

WISH for LT care

A bipartisan bill in the House of Representatives shows promise for creating a national LTC benefit, Schoonveld said.

Reps. Tom Suozzi, D-N.Y., and John Moolenaar, R-Mich., have reintroduced the Well-Being Insurance for Seniors to be at Home (WISH) Act to address the issue. The bill would allow Social Security recipients to get a new benefit specifically to pay for LTC costs at home.

WISH would create a trust fund to pay benefits a brief waiting period. Supporters say WISH would strengthen the private insurance market, which would provide coverage during the one-to-five-year waiting period, while also relieving financial stress on Medicaid.

“When you get that continuum of care across the care episode, you get a better shot of keeping that individual in a safe place in their home,” Schoonveld said. “And then the WISH program could save, and the Medicaid program thereafter can save as well.”

As these developments accelerate, the NAIC and the task force is the perfect place to hold a running dialogue so the best results are shared and spread across the states, Burns said.

“The need for long-term care is growing at an unprecedented pace, and the demand for care and caregivers will soon outpace the ability of families to provide that care,” she said. “I urge the Senior Issues Task Force to hold an interim meeting to discuss various state strategies and proposals for financing this kind of care.”

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Total U.S. annuity sales were $106.3 billion in the first quarter of 2025, level with the record set in first quarter 2024, according to results from LIMRA’s U.S. Individual Annuity Sales Survey. This quarterly survey represents 85% of the total U.S. annuity market.

“Total annuity sales topped $100 billion for the sixth straight quarter, demonstrating the growing interest in principal protection and guaranteed income continues,” said Bryan Hodgens, senior vice president and head of LIMRA research. “That said, too many consumers and advisors don’t know enough about annuities and how they can help Americans achieve financial security in retirement. LIMRA and LOMA’s recent announcement to bring the Alliance for Lifetime Income under its umbrella is furthering our commitment to drive awareness about the value of annuities and protected income solutions across the entire value chain, including consumers, financial advisors, and other external audiences. The integration strengthens LIMRA and LOMA’s role in shaping the retirement security conversation and influencing consumer perceptions and industry strategies.”

Athene was the top carrier in total annuity sales and fixed annuity sales for the quarter, while Equitable led the list of variable annuity carriers.

Athene also was the leader in fixed rate deferred and indexed annuities in the quarter.

Registered index-linked annuities

Registered index-linked annuity sales rose 20% year over year to $17.4 billion in the first quarter. Three quarters of the top 20 RILA carriers reported growth in the first quarter.

“We continue to see new companies enter the RILA market, driving product innovation and expanding distribution. Indexed products – both RILAs and fixed indexed annuities – represented 42% of all annuity sales in the first quarter. A decade ago, sales of these products represented less than 30% of total sales,” said Keith Golembiewski, assistant vice president and LIMRA annuity research director. “Today’s investors have to balance the concerns of economic uncertainty with the need for greater upside investment growth potential. RILAs and FIA offer that balanced value proposition.”

Traditional variable annuities

For the fifth consecutive quarter, traditional variable annuity sales increased year over year. Traditional VA sales totaled $15.3 billion, up 12%, compared with the first quarter of 2024 results. Ninety percent of the top 20 VA carriers and two-thirds of all VA carriers posted gains in the first quarter.

“LIMRA research shows fee-based VA sales grew 21% in the first quarter, compared with prior year results, noted Golembiewski. “While this growth includes, in small part, fee-based RILA sales, we believe the resurgence of traditional VA sales over the past five quarters likely is related to the ongoing efforts to expand distribution to the registered investment advisor channel.”

Jackson National was the top seller of traditional VAs in the first quarter while Equitable topped the list of RILA sellers.

Fixed-rate deferred

Total fixed-rate deferred annuity sales were $39.7 billion in the first quarter, up 36% quarter over quarter, but down 8% from first quarter 2024 sales. Despite the annual decline, FRD annuities remain the primary driver of annuity sales growth, representing nearly 38% of the total annuity market in the first quarter.

“Market volatility in the later part of the quarter cause FRD sales to spike in March as investors sought protection and guaranteed growth amid market uncertainty,” said Golembiewski. “The average crediting rate for a three-year FRD products remained nearly 200 basis points above the average CD rate. With persistent inflation delaying any potential interest rate cut by the Federal Reserve, LIMRA expects FRD sales will be above $120 billion in 2025.”

Fixed indexed annuities

Fixed indexed annuity sales fell 3% year over year to $27.8 billion in the first quarter of 2025. Despite the slip in sales, over half of the top 20 FIA carriers reported sales growth in the quarter.

Income annuities

Income annuity sales fell in the first quarter. Single premium immediate annuity sales were $3 billion in the first quarter, 16% lower than the prior year’s results. Deferred income annuity sales were $900 million in the first quarter, down 22% year over year.

“As we commemorate June as Annuity Awareness Month, it’s a good time to highlight the crucial role that annuities can play in securing Americans’ retirement future,” said Hodgens. “Our research shows just among pre-retirees who don’t own an annuity, only 44% expect to have enough income from lifetime guaranteed income sources (i.e., Social Security or private pensions) to cover basic living expenses. Our industry needs to do a better job of explaining how annuities can provide that guaranteed income and offer financial peace of mind.”

For more details on the sales results, visit: Annuity Estimates (First Quarter 2025) in LIMRA’s Fact Tank.

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Phillip Roy Wasserman is expected to get another day in court to make his case that state and federal agents broke the law during investigations that led to his fraud conviction.

Wasserman was convicted on May 15, 2023, on nine felony counts. The three most serious – wire fraud, mail fraud and conspiracy to commit wire and mail fraud – all carried lengthy prison terms. The self-styled “Annuity King” in Florida promotions, Wasserman ran a fraud totaling $6.3 million, the government alleged, money it seeks to recover.

Wasserman, 68, is behind bars at Coleman Low Federal Correctional Institution in Sumterville, Fla., according to the Bureau of Prisons. His release date is June 5, 2036.

Meanwhile, Wasserman filed a civil lawsuit in 2021 against the United States, the Florida Department of Financial Services, and Stephen Howland over alleged bias in their investigations into Wasserman’s business.

Judge Thomas P. Barber scheduled a pretrial hearing for 1:30 p.m. Aug. 18, with the trial set for the Sept. 3 trial term.

Wasserman: Rampant bias

Wasserman makes several claims of bias in the state and federal investigations. He claims that state officials have a politically motivated vendetta against him because of his successful efforts to oppose the U.S. Senate campaign of Betty Castor in 2004.

Howland is named because he was a financial investigator for the Florida Office of Financial Regulation from 2014 to 2021. Wasserman had a history of financial problems that resulted in various tax liens and civil judgments being entered against him and his companies, Howland noted in court documents.

“Plaintiff claims that his history of tax liens and adverse civil judgments somehow show that OFR and Investigator Howland were out to get Plaintiff; however, such is without merit,” former Florida Attorney General Ashley Moody wrote in a court response. “If anything, Plaintiff’s history of tax liens and adverse civil judgments provided further justification for OFR’s and Investigator Howland’s investigation.”

Likewise, federal agents discussed Wasserman’s tax liens and civil judgments during interviews with clients and potential witnesses, Wasserman claims. Agents asked leading questions, Wasserman alleges, such as, “Did you know that Wasserman paid himself a salary of more than $500,000 per year?”

“Questions in this format … is clearly telling the interviewees this is what Wasserman did, even though the premise of many of the questions was false and misleading,” Wasserman claims in court documents.

Government: FastLife fiction

The government said Wasserman, with Kenneth Rossman, lied and concealed information to convince elderly victim-investors to put their money into Wasserman’s life insurance venture called, “FastLife.”

Despite facing a sentencing range of 30 to 37 months, Rossman was sentenced to probation. He pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of “aiding and assisting the preparation and filing of fraud and false tax returns” in a plea deal with the federal government.

Rossman testified against Wasserman as part of the deal.

The government requested a stiff sentence for Wasserman, claiming that he urged one witness to lie to investigators, attempted to dissuade several victim-investors from cooperating with law enforcement, and requested that one victim-investor make a baseless complaint against an investigator.

In addition, Wasserman falsely and fraudulently represented that he had an audit from a highly regarded financial services firm that would show neither he nor FastLife had committed any wrongdoing, the government said.

“In fact, Wasserman had never even engaged the firm to perform an audit and never received any final work product of any kind from the firm,” a news release said.

Wasserman spent “a significant amount of the victim-investors’ money” to finance a lavish lifestyle that included a luxury personal residence, a beach house on Casey Key, Tampa Bay Lightning season and playoff tickets, concerts and other shows, vehicles, jet skis, jewelry, personal celebrity entertainment, gambling, retail shopping, home improvements, personal insurance, and a host of other expenses for his personal benefit and the benefit of family members, the U.S. attorney’s office has said.

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“Retirement isn’t just about number crunching; it is a significant emotional transition that many
clients simply aren’t emotionally prepared for,” says Financial Planning Association (FPA) President Paul Brahim. “As more Americans near retirement, it’s imperative that financial planners do more than just manage money. They also need to help clients deal with the emotional aspect of this new life phase.”

The FPA and the Journal of Financial Planning, with support from Finance of America, recently released the 2025 Trends in Retirement Planning survey report. This report provides a look at the evolving challenges and priorities shaping retirement, including the emotional readiness of many consumers for retirement.

Based on feedback from 167 financial planners, the report suggests that planners are positive about their clients’ financial readiness, but many are concerned about the emotional and lifestyle adjustments of retirement. Rising healthcare costs and the challenge of saving enough for a long retirement are also major risks.

An abrupt life change

So why is emotional readiness such a major issue for retirees? “When you retire, your whole life changes, and it’s abrupt,” explained Brahim, who is also managing director and financial advisor at Wealth Enhancement. “Yes, you plan, you think about it. You envision it. Then one day, it happens. You were working a day ago. You had lunch with friends with common interests and challenges. You had purpose. You were problem-solving, contributing, earning money. The next day, you very well may have none of that. The sense of loss can be profound. In fact, retirement is considered by many to be one of the most significant stressors in our lives, on par with divorce and the death of a spouse. Without emotional preparation, retirees may experience stress, depression, and a sense of purposelessness.”

Importantly, Brahim asked: “Are we being pushed to retire – health issues, a loved one’s health issues, burn-out, or right-sizing? Or are we being pulled to retire – a desire to do something different like volunteerism, a greater focus on family and relationships, travel, or even a second career that’s a passion and not just a job?” The principal driver can set the emotional tone, he said.

In addition, Brahim pointed out that when business owners are asked about the first year after selling a business, 75% suggest that they don’t just regret it, but rather deeply regret selling their business. “The biggest reason cited is lack of purpose. We need purpose – both head and heart issues in our lives to provide satisfaction,” he said.

Why emotional preparation gets overlooked

Brahim also explained why so many advisors sometimes ignore the emotional and lifestyle adjustments their clients must make in retirement. “Clients often tell us about the things they’re going to do in retirement: golf, fish, travel, garden. Advisors misinterpret things retirees do with their time as purpose. They’re not. Time fillers aren’t purpose fillers,” he said.

Also, emotions are private, Brahim added. Negative emotions like fear and loss tend to be even more private. Unless there is a strong bond of trust between a client and an advisor, these issues may not be discussed at all.

“I’ve had conversations with retiring couples where one spouse says to the other: ‘After all these years together, I never knew you felt that way.’ If it’s difficult to discuss with your spouse, how much more so with your financial advisor?” he asked.

In addition, Brahim pointed out that many advisors focus primarily on financial planning and may lack training in addressing the emotional and lifestyle aspects of retirement. At the same time, clients often prioritize financial security over emotional readiness, leading advisors to follow suit.

Advantages of emotionally ready retirees

Emotionally ready retirees tend to experience greater satisfaction and fulfillment, Brahim said. They are better equipped to handle the transition, maintain social connections, and engage in meaningful activities, leading to improved mental health and overall well-being.

Brahim then provided some steps that advisors can take to help their clients become emotionally ready:

• Encourage them to envision their post-retirement life and set personal goals.
• Facilitate discussions about emotional readiness and potential challenges.
• Recommend seeking support from therapists or retirement coaches.
• Help them build a balanced retirement plan that includes social and recreational activities as a
  complement to a purpose-driven life. “Simon Sinek taught us that it’s all about the ‘Why,’ ” Brahim said. “Help them find their way in this next chapter of their lives.”

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Publicly traded insurance companies showed strong financial performance in 2024 compared to the prior year, according to an analysis by Compensation Advisory Partners.

CAP released its annual research on executive compensation and financial performance across two industry segments, including 19 of the largest publicly traded property/casualty and life/health insurers.

Among the key takeaways from the analysis:

• In 2024, insurance companies had their best year with respect to total shareholder return since 2013. This momentum has continued in 2025, where year to date, insurance companies are outperforming the S&P 500.
• The median increase to CEO total target compensation for 2024 was 6.1%, largely driven by increases to target long-term incentives. Median increase for P/C CEOs was slightly higher than L/H CEOs (6.8% vs. 4.7%).
• Top-line growth in 2024 was in the double digits and at its highest rate in more than a decade, while profitability and returns continued to grow year over year. P/C insurers had overall stronger performance results than did L/H companies.

 Strong overall performance in 2024

Top line growth in the insurance industry was particularly strong in 2024, with median revenue growth of +10.1% for all insurers in CAP’s. This was the largest increase over the last 10 years.

Revenues for L/H insurers increased +6.1% at median in 2024, the first year-over year increase since 2019. Revenue and premium growth for P/C insurers in 2024 were up +12.3% and +9.0%, respectively, which was in line with reported growth in 2023.

Net Investment Income continued to be very strong in 2024, with the full sample of companies up +11.4% year-over-year at median. Growth was slightly below 2023 (+12.1%), but above the prior five-year average (+3.1%). P/C insurers (+21.5%) outperformed L/H insurers (+6.9%) with respect to 2024 net investment income growth.

Both P/C and L/H insurers generally reported operating income and operating return on equity growth in 2024. However, profitable growth for P/C insurers was significantly stronger than for L/H insurers in the study.

“A lot of revenue growth has come from pricing and some of that growth has come from other internal, organic growth opportunities,” said Roman Beleuta, CAP principal. “We also saw strong growth in investment income, which is driven by portfolio management. Also, rising interest rates definitely contributed to some of that growth as well.”

CEO pay for performance increased for 2024

Annual incentives, or bonuses, for insurance company CEOs increased in 2024, and generally aligned with financial performance.

In 2024, 6 of 19 companies funded annual incentives at or above 150% of target, more than any other year since 2021 (7 companies).

P/C companies funded annual incentives higher than L/H companies.

CEO incentives increased in 2024 as the industry had its best year since 2021, Beleuta said.

“Seeing this level of strong performance was encouraging, and payouts follow that performance as well.”

Modest increases in insurers’ CEO target pay in 2024

Median CEO target total direct compensation for 2024 increased modestly for most companies in the analysis. The median increase in for all CEOs in the sample was 5.5% in 2024, which compares with 5.8% in 2023 and 5.6% in 2022.

Brighter profitability forecasts for insurers

Despite elevated concerns in January about the California wildfires, catastrophe losses have come in lower than initially expected, causing the annual outlook to brighten from first quarter and analysts to raise their profitability forecasts, the CAP report said. L/H companies are generally viewed more neutrally on the street as they are more sensitive to market volatility through their asset holdings and increased pressure on fees and spreads.

CAP’s insurance sample

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A group of plaintiffs suing UnitedHealth Group over the fund selections in its company retirement plan is seeking final court approval for a $69 million settlement.

Judge John R. Tunheim scheduled a hearing on the motion for final approval for 10 a.m. Thursday.

The class-action lawsuit alleged that the health care giant cost workers millions in lost gains by forcing them into lower-performing 401(k) options. UnitedHealth Group settled in December. Since then, a claims administration firm has been busy tracking down nearly 352,000 class members, court documents say.

Also, Judge Tunheim, of the U.S. District Court of Minnesota, received two requests from former employees who say they more reliant on the settlement dollars than other class members. The employees asked the judge to consider an “age-weighted distribution” of the settlement.

The request for final settlement approval from lead plaintiff Kim Snyder makes scant mention of the request for an age-weighted distribution. Snyder’s request stresses the agreement and fairness of the $69 million figure.

The court previously agreed that the settlement is “fair, reasonable, and adequate,” and “the result of serious, extensive arm’s-length and non-collusive negotiations,” and “falling within the range of reasonableness warranting final approval… having no obvious deficiencies.”

Of that payout, attorneys request $23 million, or one-third. Snyder’s petition calls that figure, “fair and reasonable.”

Angeion Group, the class settlement administrator, has taken 1,889 calls from class members, received 157,846 page views of the settlement website, and processed 3,239 former participant rollover forms since March 24, 2025, the final approval petition states. No settlement objections were received.

‘One of the worst-performing’ options

The 401(k) lawsuit dates to 2021 when Snyder alleged interference by the company’s CFO to retain certain Wells Fargo funds within the 401(k) plan. The bank was a large customer for UnitedHealth Group, Snyder claimed, including for coverage sold by its large UnitedHealthcare health insurance business.

The Wells Fargo fund was “one of the worst-performing target date options in the entire market,” the law firm alleged. UnitedHealth’s decision to keep the Wells Fargo fund as the default investment for the plan for over a decade violated fiduciary duties of prudence and loyalty under the Employee Retirement Income Security Act (ERISA).

The matter was certified as a class action in February 2022.

In order to justify keeping the poorly performing Wells Fargo Target Fund Suite, Snyder’s attorneys alleged that UnitedHealth “kept its decision-making secret and threw out key findings that the plan’s own Investment Committee had made, while abandoning the plan’s written criteria for screening investments.”

Snyder requested a $50,000 “class service award” for being the sole plaintiff listed on the lawsuit.

Payout terms outlined

Snyder’s motion for final approval outlines how the $69 million will be distributed. Using a
settlement allocation scoring system, all class members will receive a prorated share of the settlement based on their “total investment amount in the Wells Fargo Target Funds and the relative quarterly performance of their holdings in the Wells Fargo Target Funds,” the motion reads.

Class members still active in the 401(k) account will see their award deposited directly into their retirement accounts. Former participants will receive direct payments by check, the motion notes, but were given the option to have their distributions rolled over into an eligible retirement account.

“The allocation method will be effective and certainly falls within the range of what is needed to establish that Class Members are treated equitably,” Snyder’s motion for approval says.

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National Life Group set a bunch of new sales records in 2024, including $635 million in life insurance policies, $3.4 billion in annuities, and $57.4 billion in assets under management.

Life sales were up 20%, while annuity sales increased by 17%.

But that is not the mutual company’s focus, CEO Mehran Assadi insisted.

“The difference between this organization and some of our competitors … is in the fact that we are not product pushers,” Assadi said, acknowledging a “tremendous respect” for competitors. “We are about educating and also providing consulting services to the marketing organizations with whom we work.”

The NLG executive team held a conference call for investors last week to discuss the company’s 2024 annual report, released in April.

One of the oldest mutual insurance companies in the United States, National Life Group reported $507 million in core earnings for 2024. That figure rose $36 million over the previous year. The insurer ended the year with $56.4 billion in total assets, up $10 billion from a strong 2023, Assadi said.

NLG ranks first in fixed indexed annuity sales within employer-sponsored retirement plans and first in indexed universal life insurance sales nationwide, according to LIMRA. In overall life sales, the insurer moved up one spot to seventh among all reporting U.S. life insurance companies.

“Our strong relationships with our distribution partners and our ability to meet the needs of middle America have produced an industry-leading position in our core markets,” said Eric Sandberg, chief financial officer.

Record life and annuity sales are continuing so far into 2025, he added.

Severe agent shortage

While NLG also serves the affluent market, its niche is “Middle America,” as Assadi put it. The insurer’s distribution model relies on tens of thousands of agents in communities across the United States.

Agent recruitment remains a “significant” need as the industry is about 100,000 agents short of what is needed, Assadi said.

“We are very proud and feel very privileged to serve the needs of Middle America, as there are over 100 million Americans who are either underinsured or don’t have any insurance,” Assadi said.

National Life Group traces its roots to 1848, when it was chartered by the Vermont General Assembly. Today, the insurer remains headquartered in Montpelier.

Several member companies make up National Life Group, including National Life Insurance Co., Life Insurance Co. of the Southwest, and Equity Services, Inc., a broker-dealer and registered investment adviser.

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According to a recent study by Lincoln Financial, small business owners believe the right employee benefits, retirement plan services, and well-being solutions can help attract and retain quality talent, which is one of their biggest challenges, together with managing the cost of employee benefits.

Lincoln Financial’s research of more than 550 U.S. small business owners’ employees’ experiences with workplace selection and communication needs reveals that they want to invest more in workplace solutions for their employees’ health and finances.

The study pointed out several areas where small business owners wanted to offer additional benefits to employees. These include helping employees cover medical expenses (46%), helping them become more financially secure (55%), and helping them to save for retirement (55%).

Reasons why these areas are priorities

The survey found that attracting and retaining talent are among the biggest challenges faced by small business owners, explained Jimmy Reid, EVP and president of workplace solutions, Lincoln Financial.

Most small business employees surveyed said benefits for their health, finances, and well-being are “must-haves” for an employer to provide, said Reid. Small business owners recognize that if they’re not meeting employees’ expectations when it comes to benefits, they’re potentially missing out on a significant portion of the talent pool.

“A well-rounded, comprehensive benefits package can help small businesses attract and retain top talent,” Reid said. “Small businesses are at risk of losing crucial information and institutional knowledge if a key employee decides to leave, often more so than companies with larger employee populations. Benefits can be a significant retention factor for those employees to help them feel confident about their financial future, regardless of what comes next.”

Promoting the well-being of employees is also top-of-mind for small business owners, Reid added. Holistic benefits offerings – like retirement, wellness solutions, health and supplemental health – help employees manage their stress when it comes to finances and overall well-being, which, in turn, can help small business owners mitigate employee absences. “Healthier, less stressed employees are more engaged and productive, and ultimately, positively impact an employer’s bottom line,” he added.

Challenges in offering benefits

Although many small business owners consider these workplace benefits top priorities, quite a few of them are not investing in them. In explaining some of the reasons for this disconnect, Reid said that according to Lincoln Financial’s research, small business owners face numerous challenges in 2025. These include maintaining profitability, cost of health insurance and non-health employee benefits, economic uncertainty, cost of labor, and attracting and retaining quality talent.

“How each small business owner approaches these overlapping challenges depends on their unique needs and priorities, but the common denominator is a recognized need for more education in the areas where they can’t spend the time they want,” Reid said. “For many, that starts with benefits.”

For small businesses, Reid explained, there is a gap between having an interest in, and actually offering benefits, which, in some cases, can be attributed to the business owners’ limited understanding of available offerings. According to the study, only 63% of small business owners said they are very familiar with options related to covering medical expenses — and familiarity is even lower for other types of benefits. “Helping employees be more financially secure tied as the top area in which small business owners would like to invest more money, but less than half (45%) say they’re very familiar with the offerings available to help their employees be more financially secure,” Reid said.

Selling workplace benefits

So, what are some of the steps that financial professionals can take to sell workplace benefits to their small-business owner clients and prospects? “Through our survey, we learned small businesses are looking for support and education,” Reid said. “A financial professional working with a comprehensive benefits carrier can serve as a supportive partner to help deliver a robust, well-rounded benefits package and partner with small businesses to alleviate administrative burdens. These partnerships allow owners to focus on what matters most — their employees and their business.”

In addition, carriers that can educate employers and employees about the scope of available benefits – what advantages certain benefits provide, what options to choose, or even that the benefit is available to them  – will be the best suited for small businesses. “Therefore,” Reid said, “financial professionals should focus on providing foundational information for business owners, along with potential approaches to educate, inform, and engage their employees.”

According to Reid, the survey found that small business owners are often highly attracted to bundled, consolidated benefits packages and individual benefits that serve more than one purpose. While only 20% of small businesses currently bundle all their benefits under a single carrier, and about 18% bundle non-retirement and non-health benefits, half of the remaining small businesses see bundling as very appealing. “There’s a clear opportunity for financial professionals to help employers successfully find the right bundled benefits for their unique situation,” he said.

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As another volatile hurricane and wildfire season looms, insurers are confronting a new risk that is not coming from the sky or the sea — but from Washington: cuts and massive layoffs at the National Oceanic and Atmospheric Administration (NOAA).

The budget cuts, along with layoffs and buyouts – totaling about 20% of the NOAA staff – along with the agency’s recent decision to stop updating its widely used Billion-Dollar Weather and Climate Disasters database, are raising concerns across the property and casualty insurance industries. Experts warn the reductions could degrade the quality of hazard modeling that insurers rely on to assess risk, set premiums, and stay solvent in an increasingly turbulent climate era.

“Cuts to NOAA and similar agencies absolutely affect insurance underwriting and prediction,” said Gregg Barrett, CEO of Waterstreet Company, a tech services provider for insurers. “These organizations provide the baseline data we use to model risk: storm patterns, flood mapping, wildfire trends, etc. Without that, our ability to predict and price accurately starts to erode.”

NOAA, which runs the National Weather Service (NWS), has long served as a backbone for the insurance industry’s understanding of natural catastrophe trends. From satellite storm tracking to floodplain mapping and wildfire monitoring, the agency’s data provide the raw material for models used by actuaries and underwriters across the country.

That’s what made NOAA’s quiet April announcement that it would discontinue updates to its hallmark disaster cost database so troubling to the insurance industry. The Billion-Dollar Disaster Database had tracked major U.S. weather events and their economic tolls since 1980, offering a benchmark for both insured and uninsured losses. Its loss “will remove a reliable, comprehensive national record of catastrophe costs,” noted a May 2025 report by ProgramBusiness.com.

The change follows mass layoffs instigated by the newly formed Department of Government Efficiency (DOGE) and amid broader proposed funding cuts to NOAA in the White House’s fiscal 2026 budget, including reductions to satellite programs and climate research initiatives. While the full scope of cuts has yet to be finalized by Congress, insurers are already assessing the potential fallout.

‘We lose precision’

“When the data gets thinner or delayed, we lose precision,” Barrett said. “That forces carriers to lean more conservative in their assumptions, which can mean higher premiums, reduced coverage, or just pulling back from high-risk areas altogether.”

DOGE had terminated or changed 189 NOAA-specific contracts, totaling $117 million with claimed savings of $35 million. The National Weather Service has been particularly affected, with hundreds of positions eliminated and vacancy rates reaching 20% in some offices with approximately 1,029 employees laid off, representing about 8.6% of its workforce. Within NOAA, the National Weather Service (NWS) has been particularly affected, losing nearly 600 positions due to layoffs and early retirement incentives.

These cuts have led to critical staffing shortages across various NWS offices, with some locations experiencing vacancy rates exceeding 35%. Several forecast offices have reduced their hours, including the elimination of overnight shifts, and have curtailed essential activities such as weather balloon launches, considered vital for accurate forecasting.

Now, the weather service is scrambling to rehire and refill some of those vacancies, planning to fill about 125 new “mission critical” roles, including meteorologists, hydrologists, physical scientists, and electronic technicians, to address the most pressing operational needs.
“From broadcasters to weather apps, meteorologists nationwide depend on the NWS’s data collection to provide accurate forecasts that all Americans rely upon,” said a statement from the Center for American Progress. “Cuts to the fundamental work NOAA and NWS provide to U.S. communities will damage public safety, economic interests, and research efforts to learn more about weather and climate.”

Meteorologist speaks out

John Morales, a South Florida meteorologist, took to the air last week to decry the federal spending cuts to NWS and NOAA during his broadcast on NBC6, saying his ability to adequately do his job is being affected.

Morales played a segment from a 2019 broadcast when he correctly predicted Hurricane Dorian was going to turn away from Florida, thus reassuring his viewers across the state.
“And I am here to tell you that I am not sure I can do that this year, because of the cuts, the gutting, the sledgehammer attack on science in general,” Morales said.
Industry analysts agree that without high-quality, public hazard data, insurers may have little choice but to fall back on less refined private models or worst-case scenarios. That could accelerate current trends in insurance retrenchment. In the past two years, several major carriers have reduced or halted underwriting in high-risk states like California and Florida, citing surging reinsurance costs and catastrophic exposure.

Data concerns

“If the data isn’t right or they don’t have the right people get the data, it can impact, more than anything, how fast people get claims and things taken care of,” said Jon Abernathy, Director of Contractor Engagement at TAMKO Building Products, LLC, which manufactures and distributes residential roofing shingles and other building products.

Abernathy is not just worried about forecasting but also the data that may or may not be available after a storm hits. He sees a scenario where homeowners might submit claims for damaging hail when the data from NOAA don’t support it.

“The insurance company looks at the data from NOAA and says, that doesn’t match our data. And they might be wrong,” he said.

Mark Friedlander, spokesman for the Insurance Information Institute, acknowledged NOAA’s data have value, particularly for tracking uninsured losses and contextualizing the broader economic impact of natural disasters. But he emphasized that the industry also supports independent mechanisms for tracking insured losses and assessing exposure. Still, without NOAA’s broader economic context, both private and public planning could be impaired.

With extreme weather events now occurring with greater frequency and severity, the timing of the budget cuts has struck many as shortsighted. In 2023 alone, NOAA recorded a record 28 weather and climate disasters that each caused at least $1 billion in damage—more than double the annual average a decade ago.

As climate change continues to reshape risk nationwide, insurers say they need more data, not less.

“If you take away or weaken those inputs, the models suffer,” Barrett said. “And when the models suffer, so does access to affordable insurance.”

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LIMRA traces its history back to nearly 110 years of research, marketing, and analysis on behalf of insurance companies. For its next chapter, it is adding a consumer education focus via a merger with the Alliance for Lifetime Income (ALI).

LL Global, the parent of LIMRA and LOMA, announced the merger with ALI on Monday.

For LIMRA, the decision to venture into the consumer-focused space comes amid soaring annuity sales and the SECURE Act bills making it easier for annuities to be part of retirement plans.

The marriage is a natural fit, said Dave Levenson, president and CEO of LIMRA and LOMA, said in an exclusive interview with InsuranceNewsNet.

“When I think about how this brings the entire ecosystem together, it feels strategically like a very good fit,” Levenson said. “Now we’re able to work through all parts of the value chain, and on behalf of our member companies, really look to provide a much greater research education that will support both advisors and consumers.”

ALI was founded in 2018 to help consumers and financial advisors better understand the importance of protected income in retirement. Over the years, ALI has developed creative, successful public-facing campaigns that educate consumers about retirement risks and the value of annuities.

In particular, the fledgling association secured the sole sponsorship of The Rolling Stones’ 2019 “No Filter” U.S. stadium tour, which continued in 2021 after a COVID-19 break. ALI also trademarked “Peak65,” a catchy moniker to emphasize that more than 4.1 million Americans will turn 65 each year through 2027, or roughly 11,200 every day.

“The Alliance was founded eight years ago with a single mission – to help educate Americans about the importance of having protected income in retirement,” said Jean Statler, CEO of ALI. “Though our research shows more pre-retirees are aware of and asking their advisors about annuities, there’s still more work to be done. We believe LIMRA and LOMA’s long history of industry leadership, capabilities, and resources will help take this effort to a whole new level.”

Retirement security concerns

Through the merger, LIMRA and LOMA “will build on that success by integrating ALI’s programs with its own industry knowledge and research,” LL Global said in a news release.

LIMRA included more consumer insights into its research in recent years via its annual Insurance Barometer study. In each of the last 15 years, LIMRA research shows consumers’ top concern has been about achieving retirement security, Levenson said. It also aligns with the societal trend away from pensions toward self-directed retirement plans.

Annuities are benefiting from several positive trends, including the Peak65 demographics. A pair of SECURE Act bills cleared away many hurdles to the inclusion of annuities within retirement plans. As a result, many traditional advisor firms are warming up to annuity products as part of overall financial planning.

Groups like ALI are helping to erase the checkered reputation annuities have among advisors.

“In the next four years, we’re going to see this massive amount of individuals in our country turning 65 and when you think about what those individuals need, toward the top of the list is certainly guaranteed lifetime income and retirement savings,” Levenson explained. “Here we are at LIMRA talking about why this stuff is so valuable, and now we can really help support our member companies by showcasing the value research perspective and education perspective.”

Member-driven organization

ALI members include insurers Allianz Life, Corebridge Financial, Pacific Life, Prudential Financial, Transamerica, Lincoln Financial, and Equitable Financial. J.P. Morgan, Franklin Templeton, Capital Group, and Macquarie are members from the asset manager side, with Milliman also on board.

“Bringing together ALI and LL Global comes at a critical inflection point during an era where we have a rapidly aging population who is living longer than ever before and not necessarily saving for a longer life in retirement,” said Caroline Feeney, executive vice president and global head of retirement and insurance, Prudential Financial, who serves as chair of both organizations’ board of directors. “There is no question that the power and leadership of these organizations collectively will drive scalable change to help more people achieve greater financial security in retirement.”

The transaction is expected to close by August 31, 2025.

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