Industry Insights

Small businesses have it tough when it comes to managing insurance costs. Traditional insurance policies can be pricey and inflexible, leaving little room to customize coverage or control premiums. But there’s another option that’s gaining traction: captive insurance . Once reserved for big corporations, this approach is now helping smaller companies get more bang for their buck. So, what’s captive insurance all about, and why should you care? Let’s break it down. What Is Captive Insurance? Think of captive insurance as DIY employee benefits. Instead of paying premiums to a commercial insurer, you and other businesses pool your resources to create your own insurance company, known as a captive . This lets you customize coverage, control premiums, and keep a closer eye on risk management. It’s like building an insurance plan that actually fits your workforce’s needs. Types of Captive Insurance There are a few ways to set up a captive, depending on how much control and risk you want to take on: 1. Pure Captives These are fully controlled by the members and come in two main types: Single Parent Captive: One company owns and controls the captive, covering only its own risks. Group Captive: Multiple companies in the same industry team up, sharing risks and rewards. This setup is great for smaller businesses looking to spread out the cost and risk. 2. Sponsored Captives With sponsored captives, outside investors provide capital, making it easier for smaller companies to get in the game without putting up all the money themselves. Captive Insurance vs. Traditional Insurance Here’s the big difference: Traditional Insurance: You pay premiums to an outside insurer who then assumes your risk. But these policies are often rigid, with strict exclusions that might leave gaps in your coverage. Captive Insurance: You invest your own resources into your captive, giving you more control over premiums, policies, and claims. Plus, you keep any unused premiums as profit. What’s in It for You? Key Benefits of Captive Insurance Custom Coverage: Tailor your policies to fit your unique needs, avoiding unnecessary extras. Control Over Decisions: In a group captive, you get a say in everything from premiums to claims processes. Invest Premiums: Unlike traditional insurance, you can invest your premiums, earning revenue even if no claims are made. Rewards for Safety: If your business maintains a low claims history, you get better payouts and can reinvest those savings back into your company. Is Captive Insurance Right for Your Business? You might think captive insurance is only for the big companies, but that’s not the case anymore. Thanks to group captives and sponsored captives, small businesses can also get in on the action. It’s a great option if you: Want more control over your insurance policies. Like the idea of investing premiums for potential returns. Prioritize safety and good risk management. Whether you run a small manufacturing company, a professional services firm, or a retail business, captive insurance offers a flexible, cost-effective way to protect your business. Captive insurance can be a game-changer, but there are a lot of factors that can determine if it works for your business. That’s where KBI Benefits comes in. Our brokers specialize in helping small businesses navigate this complex landscape, offering personalized advice to find the best solution for you. We offer a free audit of your current employee benefits plan to help you find cost savings and make sure you’re getting the most value from your existing benefits offerings. If captive insurance is the right fit, we’ll help you make a smooth transition. Want to learn more? Contact KBI Benefits today and see how captive insurance could work for your small business.

Employers looking to attract and retain top talent are considering different types of medical benefits to meet employee expectations. While major medical insurance remains the gold standard, some businesses are exploring limited health plans as a supplemental option. But are these plans right for your business? Understanding the role of limited health plans and how they fit into an employee benefits package can help you determine if they align with your company’s needs. What Are Limited Health Plans? Limited health plans are medical insurance policies that offer lower benefits and coverage restrictions compared to major medical insurance. These plans come with significantly lower premiums but do not provide the comprehensive coverage mandated under the Affordable Care Act (ACA). Types of limited health plans include: Fixed Indemnity Plans – Pays a set amount per medical service, regardless of the actual cost. Critical Illness Plans – Provides a lump-sum payment for serious diagnoses like heart attacks or strokes. Hospital Cash Plans – Pays a fixed amount per day of hospitalization. Accident-Only Plans – Covers medical costs associated with accidents. Accidental Death and Dismemberment (AD&D) – Pays out if an employee loses a limb, eyesight, or life due to an accident. Short-Term Health Plans – Temporary coverage for those in transition between major medical policies. Unlike traditional health insurance, these plans are designed to supplement coverage rather than replace major medical insurance. The Benefits of Offering Limited Health Plans While limited plans cannot serve as primary health insurance, they can offer advantages when included as part of an employee benefits package. 1. Helps Offset High Deductibles Many employees enroll in high-deductible health plans (HDHPs) due to their lower premiums, but these plans require employees to pay substantial out-of-pocket expenses before coverage kicks in. A limited plan, such as a fixed indemnity or critical illness policy, can help reduce these financial burdens. 2. Affordable Option for Employers and Employees Limited health plans are significantly cheaper than major medical insurance, making them a budget-friendly option for businesses looking to enhance their benefits package without a significant increase in costs. 3. Attracts and Retains Employees According to SHRM’s 2021 Annual Employee Benefit Survey, many employers have expanded their supplemental health insurance options. Offering additional coverage options, even in the form of limited health plans, can make your business more attractive to potential hires. 4. Useful for Employees in Transition Limited plans can be an ideal option for employees: Between jobs or recently laid off Aging out of parental insurance Missed ACA open enrollment Self-employed or working as freelancers Frequently traveling for work and needing out-of-network coverage Should Your Business Offer Limited Health Plans? Whether limited health plans are right for your business depends on several factors: Do your employees have high-deductible health plans? If so, offering a supplemental limited health plan can provide additional financial protection. Are employees looking for more affordable options? Limited plans can be an appealing choice for those who need lower-cost insurance alternatives. Do you want to enhance your benefits package without increasing costs significantly? Limited plans can provide added value to employees without the high expense of major medical insurance. Is employee retention a priority? Competitive benefits can help attract and retain talent in today’s workforce. Final Thoughts While limited health plans are not a replacement for major medical insurance, they can serve as a valuable supplement to existing coverage. If your business wants to provide additional financial protection for employees without significantly increasing costs, these plans might be worth considering. Before making a decision, consult with KBI Benefits to ensure you are offering the most optimized benefits for your workforce. This can mean the difference between a positive and negative ROI on your employee benefits. Contact a benefits expert today to explore the best options for your business.

For younger employees stepping into the workforce, navigating employee benefits can feel like deciphering a foreign language. This lack of understanding often results in missed opportunities to maximize benefits and unnecessary expenses for both employees and employers. The solution? Comprehensive education. By helping younger employees understand their benefits early and effectively, employers can empower them to make informed decisions, leading to improved satisfaction, cost savings, and overall well-being. Here’s how employers can take actionable steps to educate their younger workforce on employee benefits. 1. Start with the Basics Young employees, particularly those new to the workforce, often lack foundational knowledge about insurance and benefits. Start with a "Benefits 101" approach, covering essential topics such as common insurance terminology, how group health coverage works, and the importance of enrollment deadlines. Breaking down these concepts into digestible pieces will give employees the confidence to engage with their benefits plans. Providing user-friendly resources like glossaries of key terms, FAQs, and introductory guides can make this foundational education accessible and engaging. 2. Highlight the Value Younger employees are more likely to engage with benefits education when they see personal value. Explain how understanding their benefits can lead to smarter healthcare decisions, financial savings, and even long-term investment opportunities. For instance, show how researching provider networks can significantly reduce out-of-pocket costs or how contributing to a 401(k) early can yield substantial retirement savings. Focusing on tangible benefits helps employees connect the dots between learning about benefits and improving their overall quality of life. 3. Use Varied, Engaging Formats Gone are the days when lengthy handouts and dense white papers were the only options for benefits education. Younger employees respond better to diverse and interactive formats. Consider using: Videos to explain complex topics in a simple, visual manner. Infographics to break down key points. Email series to provide regular, bite-sized education. Interactive webinars for live Q&A sessions. Posters and flyers for quick reminders in shared spaces. By diversifying your approach, you can keep employees engaged while reinforcing important messages. 4. Make It a Continuous Process Benefits education shouldn’t be limited to onboarding or open enrollment periods. Make it an ongoing effort throughout the year. Create a communication calendar to share relevant topics each month, such as how to use telemedicine, when to visit urgent care versus the ER, or how life events affect benefits. Regular education keeps benefits top of mind and helps employees feel supported as their needs evolve over time. 5. Encourage Questions and Provide Support Even with robust educational efforts, employees will still have questions. Ensure your HR team is equipped to answer these inquiries promptly. Designate a dedicated benefits specialist who can respond to emails, attend meetings, and offer personalized guidance. Additionally, consider scheduling one-on-one meetings before open enrollment. These private sessions provide a safe space for employees to ask questions they might hesitate to bring up in larger group settings. Why Benefits Education Matters Educating younger employees about their benefits isn't just about helping them understand health insurance jargon; it's about equipping them to make informed decisions that positively impact their lives and your organization. Employees who understand and value their benefits are more likely to utilize them effectively, reducing unnecessary costs and increasing overall satisfaction. Build a Better Benefits Plan with KBI Benefits At KBI Benefits, we understand the importance of a well-designed benefits plan paired with effective education. Our team can help you craft an attractive benefits package that meets your employees’ needs while providing the resources and support to ensure they know how to make the most of it. Investing in benefits education not only improves employee satisfaction but also boosts productivity and loyalty. Speak with a KBI Benefits agent today to take your team’s performance and well-being to the next level!

As 2025 begins, significant shifts in employee benefits are set to redefine how businesses support their workforce. From rising health care costs to evolving workplace expectations, staying informed is essential for maintaining competitiveness and compliance. Here’s a closer look at the key changes and trends businesses should prepare for in 2025. 1. Rising Health Care Costs Health care costs are expected to surge by 7-8% in 2025 , driven by several factors, including medical inflation, an aging population, and increased demand for specialized medications like GLP-1 drugs. These drugs, popular for weight loss and obesity management, have garnered significant employee interest but come with steep price. Chronic health conditions such as diabetes, heart disease, and mental health issues also continue to dominate spending. To address these challenges, businesses are exploring mitigation strategies such as cost-sharing, preventive care education, and leveraging prescription drug savings programs. Employers are also reevaluating their formularies and wellness initiatives to balance rising costs with the need to offer competitive health plans. Now more than ever, businesses must take proactive steps to manage costs without compromising the quality of care their employees receive.  2. Health Plan Transparency: Compliance and Employee Trust In 2025, businesses must adhere to stringent health plan transparency requirements. These include self-service price comparison tools that provide real-time cost estimates for covered services and machine-readable files that disclose detailed pricing information. Additionally, employers must ensure compliance with rules against surprise medical billing and submit annual reports on prescription drug spending. Failure to meet these requirements could expose businesses to legal and financial risks. Partnering with knowledgeable third-party administrators or benefits providers can help businesses navigate these complex regulations. Beyond compliance, investing in transparency builds employee trust by empowering them to make informed health care decisions. 3. Telemedicine The popularity of telemedicine remains strong post-pandemic, offering employees convenient and cost-effective access to care. However, changes in high-deductible health plans (HDHPs) compatible with health savings accounts (HSAs) may create new challenges. Unless further legislation is enacted, providing telemedicine benefits without deductibles could jeopardize HSA eligibility in 2025. Employers must carefully assess their telemedicine offerings to ensure compliance while continuing to meet employee needs. Enhancing cybersecurity measures is also critical as telemedicine platforms handle sensitive health data. By aligning telemedicine benefits with business goals and employee expectations, companies can improve accessibility and manage costs effectively. 4. Labor Market Trends: Retention and Recruitment in Focus Although the labor market is stabilizing, businesses still face challenges in attracting and retaining talent. Competitive compensation remains a top priority for job seekers, with younger generations placing a premium on pay transparency and robust benefits packages. Meanwhile, workforce demographics are shifting, with millennials and Gen Z dominating the labor pool. Employers are responding by offering personalized learning opportunities and leveraging technology to streamline workflows. Flexible work arrangements and hybrid models also remain crucial, though many organizations are beginning to redefine the role of the office to foster collaboration and innovation. Companies that adapt to these evolving expectations will be better positioned to build a loyal and productive workforce. Moving Forward with Confidence Navigating the complexities of employee benefits in 2025 requires both strategic planning and adaptability. Rising health care costs, transparency regulations, and evolving workforce needs demand innovative solutions that balance employee satisfaction with cost efficiency. By addressing these trends head-on, businesses can create a supportive and competitive workplace environment. At KBI Benefits, we’re here to help you lower your employee benefit costs while ensuring compliance and maintaining your competitive edge. From managing health care expenses to designing holistic wellness programs, our team offers personalized solutions tailored to your needs, where you could save as much as 40% on similar employee benefits. Reach out to us today to learn how we can support your business in 2025 and beyond.

Employee wellness programs are a vital tool for creating happier, healthier, and more productive workplaces. Contrary to popular belief, these initiatives don’t have to be costly to be effective. By focusing on the physical, emotional, and financial wellness of their employees, employers can give their employees the tools they need to be happy, healthy, and productive. Below, we’ll explore 15 practical tips to improve employee well-being across these three crucial dimensions. Physical Wellness Walking Meetings : Transform sedentary discussions into walking meetings. This simple shift promotes physical activity and stimulates creative thinking. Group Fitness Classes : Organize in-office or virtual classes like yoga, Zumba, or strength training. These sessions boost morale and provide a fun way to stay active together. Fitness Challenges : Encourage friendly competition by tracking steps, hosting fitness contests, or training for events like 5Ks. Offer small prizes to keep employees motivated. Healthy Snacks : Stock the office with nutritious options like fresh fruits, nuts, and granola bars. This supports healthier eating habits and sustains energy levels throughout the day. Employee Benefits Packages: Nothing demonstrates your commitment to your employees’ health than a comprehensive employee benefits package. Employee benefits historically have improved employee retention, reduced tardiness, and ultimately provided a positive ROI on the amount of additional productivity they inspire. Speak with a KBI Benefits agent to see what employee benefits package is best for your business. Emotional Wellness Flexible Work Hours : Provide employees with the option to adjust their schedules. Flexibility fosters work-life balance and reduces stress. Mental Health Resources : Subsidize subscriptions to meditation apps like Calm or Headspace. Alternatively, offer workshops or access to counseling services. Nap Rooms : Create quiet spaces where employees can relax or take short naps during the day. A well-rested team is a productive team. Keep it Fun : Organize non-work-related activities such as game nights, scavenger hunts, or outings to a comedy show. This is a great way to improve the bonds between your team while also alleviating tension and stress. Financial Wellness Bicycle Racks and Stipends : Encourage biking to work by providing secure parking and subsidies for public transportation. This reduces commuting costs and promotes sustainability. Financial Literacy Workshops : Invite experts to discuss budgeting, saving, and investing. Equip employees with tools to manage their personal finances confidently. Relaxed Dress Codes : Shift to a casual dress policy. Employees save money on professional wardrobes, and the relaxed atmosphere can boost morale. In-Office Library : Build a collection of financial books and resources. Employees can access valuable knowledge without incurring personal costs. Paid Parental Leave : Support new parents by offering paid time off to bond with their child. This alleviates financial strain and fosters loyalty.  Why Low-Cost Employee Wellness Programs Work Effective employee wellness programs don’t have to strain your budget. These initiatives focus on enhancing the quality of life for your team while fostering a positive and productive work environment. By incorporating wellness into your organizational culture, you address critical needs without breaking the bank. At KBI Benefits, we understand the importance of balancing employee satisfaction with cost efficiency. Our tailored strategies save businesses up to 40% on their employee benefits while improving the quality of offerings. Let us help you make your employees and your bottom line happy at the same time. Ready to revamp your approach to wellness? Contact KBI Benefits today to learn how we can optimize your employee benefits and create a healthier, happier workplace.

One of the most important aspects of renewing your employee benefits plan is to do so with employee input in mind. If you want to make the most out of your employee benefits plan, employees are often ready and willing to tell you what would make them happiest to see from their benefits for the current year. Feel free to use the following list of employee benefits questions as you prepare your employee benefits package for next year. 20 Employee Benefits Survey Questions Retirement Plan Participation and Awareness What motivated you to enroll in your current retirement plan? If you are not enrolled in the retirement plan, what is the main reason for your decision? How satisfied are you with the range of investment options available in your retirement plan? Do you feel you fully understand the employer-matching contribution policy? How often do you review or adjust your retirement plan investments? Financial Education and Support How helpful do you find the financial education resources provided by the company? What type of financial topics would you like more guidance on (e.g., budgeting, investing, retirement income planning)? How comfortable are you with accessing financial wellness tools offered by the company? Would you attend in-person or virtual financial workshops if they were available? Why or why not? Do you feel the company’s resources help you balance short-term needs with long-term financial goals? Emergency Savings and Debt Management Do you feel your employer provides adequate support for building emergency savings? Would you benefit from additional tools to manage personal debt, such as credit card or student loan assistance? How important is access to a dedicated financial advisor for your financial wellness? Are you aware of any options provided by the company to assist with emergency financial situations? Retirement Readiness and Confidence How confident are you that your current retirement plan will meet your future financial needs? What additional features or services would make you feel more secure about your retirement planning? Do you feel the retirement plan aligns with your long-term financial goals? How knowledgeable are you about withdrawal options and their tax implications? Communication and Personalization Do you feel the company communicates effectively about the benefits available to you? How could the company improve its approach to helping employees better understand and utilize their benefits? Get Expert Employee Benefits Assistance If you’re ready to improve satisfaction with your employee benefits while reducing costs by as much as 40% YoY, speak with a KBI Benefits agent today for personalized assistance .

Engaging with millennials in the workplace can be challenging due to their diverse interests and unique communication needs. Born between 1981 and 1996, this generation has distinct preferences for communication methods and employee benefits compared to other generations. This article explores how to tailor communication strategies for millennials, identifies the benefits they value most, and discusses the best health insurance options to create a sustainable benefits plan. For more personalized assistance, please speak with a KBI Benefits agent today . Understand Millennial Benefit Preferences Millennials have specific expectations when it comes to employee benefits. To appeal to this demographic, emphasize aspects like work-life balance, flexibility, and overall well-being. While health insurance remains a fundamental benefit, many millennials are drawn to opportunities for financial growth, such as programs that support wealth-building. Popular benefits also include student loan repayment assistance, flexible work arrangements, and career development opportunities. When communicating your benefits, highlight these elements to demonstrate alignment with their personal and professional goals. Leverage Technology for Benefits Communication Millennials expect seamless, digital-first communication when it comes to accessing benefits information. Without leveraging technology, benefits communication risks being ineffective and unengaging. Use mobile-friendly tools and platforms to make benefits information easily accessible. Interactive online guides, videos, and webinars can simplify complex topics, such as specific insurance plans. Social media platforms, company intranets, and dedicated apps are excellent channels for promoting benefits, searching for skills, and building brand awareness. Adding interactive elements like quizzes or challenges can make learning about benefits more enjoyable. Personalize Benefits Communication A one-size-fits-all approach does not resonate with millennials. Instead, they value personalized experiences that cater to their unique needs. Segment your workforce and design tailored communication strategies for different groups within the millennial demographic. For example, new parents may prioritize family-friendly benefits, while others might prefer financial wellness programs. Utilize analytics to understand employee preferences and behaviors, enabling you to craft communication that demonstrates genuine care for their individual circumstances. Emphasize Transparency and Education Transparency is essential for millennials, who value clear and honest communication. Provide them with complete information about available options, avoiding complicated legal jargon and unnecessary technicalities. When discussing complex topics, use simple, straightforward language to ensure clarity. Beyond annual enrollment periods, create ongoing opportunities for education, such as "lunch-and-learn" sessions, FAQ documents, or meetings with benefits experts. This proactive approach equips millennials to make well-informed decisions about their benefits. Showcase the Value of Benefits Millennials often seek tangible, impactful changes in their workplaces. A clear presentation of the monetary and practical value of benefits can be a strong motivator. For example, show how a benefit might help them save for a car, pay off student loans, or invest in their future. Provide total compensation statements that outline the comprehensive value of all offered benefits. Highlighting savings opportunities, such as health savings accounts (HSAs) or wellness programs, can help millennials appreciate the full scope of their compensation package. FAQs What are the best health insurance options for millennials? Millennials tend to prefer high-deductible health plans (HDHPs) paired with health savings accounts (HSAs), as these plans often feature lower premiums and offer tax-advantaged savings for future medical expenses. Additionally, incorporating telemedicine and mental health coverage into health plans is increasingly important to this demographic. How often should benefits communication occur? Benefits communication should be an ongoing process rather than limited to annual enrollment periods. Regular notifications, reminders, and educational sessions throughout the year ensure employees remain informed. Aim for at least monthly communication using various channels. What role does social media play in benefits communication? Social media is effective for short, engaging announcements, reminders, and educational posts. It aligns well with millennials' communication preferences. However, use private or secure channels for sensitive information. How can we measure the effectiveness of benefits communication? Monitor engagement with digital materials, attendance at educational sessions, and participation rates in different benefits programs. Short surveys can also provide insights into employee understanding of benefits and their overall attitudes. Conclusion This guide highlights the importance of adapting benefits communication strategies to meet the preferences of millennials. By understanding their unique needs, leveraging technology, personalizing messages, emphasizing transparency, and showcasing value, organizations can improve both engagement and satisfaction. Effective communication is a dynamic process that requires continuous refinement. Implementing these strategies will not only enhance millennials' understanding and use of benefits but also foster loyalty and retention in your organization. Are you ready to optimize your employee benefits offerings for your team? Reach out to KBI Benefits today to schedule an audit of your program by an employee benefits expert .

Employee productivity is a cornerstone of business success, yet many organizations struggle with roadblocks that hinder their teams’ potential. Let’s discuss how you can address impediments to your team’s productivity. Health and Wellness Benefits: A Foundation for Productivity Employee wellness is directly linked to productivity. Without adequate health and wellness support, employees are more prone to illness, stress, and burnout—all of which reduce efficiency and increase absenteeism. Offering benefits such as comprehensive health insurance, gym memberships, and employee assistance programs (EAPs) is essential. Health Insurance : Providing robust medical, dental, and vision coverage ensures employees can access the care they need, reducing absenteeism and improving focus at work. Wellness Programs : Programs promoting physical fitness, stress management, and nutrition encourage employees to prioritize their well-being, leading to enhanced mental clarity and job performance. Mental Health Support : EAPs offer confidential counseling for stress, anxiety, and other challenges, fostering a supportive workplace culture. Investing in health and wellness benefits creates a healthier, more engaged workforce. KBI Benefits is ready to help you craft cost-effective wellness solutions tailored to your team . Flexible Work Arrangements: Empowering Teams to Thrive Flexibility in work arrangements is more than a trend—it’s a productivity booster. Employees who can balance their personal and professional lives are less stressed and more engaged. Flexible work options include remote work, adjustable hours, and compressed workweeks. Remote work has been shown to improve productivity by 13%, according to a Stanford study . Flexible scheduling reduces burnout, fosters loyalty, and accommodates diverse employee needs. By implementing flexible work policies, businesses can reduce turnover and increase satisfaction. Paid Time Off (PTO) and Work-Life Balance Time off isn’t a luxury; it’s a necessity for sustainable productivity. Offering paid vacation, parental leave, and flexible PTO policies ensures employees can recharge and return to work with renewed focus. Employees who take regular vacations report higher creativity and performance, according to Project: Time Off. Parental leave demonstrates a company’s commitment to family values, enhancing loyalty and retention. Encouraging work-life balance reduces burnout and builds a positive workplace culture. Professional Development: Investing in Growth Providing professional development opportunities shows employees that their growth matters, which in turn enhances engagement and productivity. Training, workshops, and tuition reimbursement empower employees to acquire new skills while strengthening their commitment to the organization. LinkedIn Learning found that 94% of employees would stay longer at a company that invests in their development. By prioritizing professional growth, businesses build a culture of innovation and improvement. The KBI Benefits Advantage Every benefit offered contributes to a more engaged and productive workforce. From health insurance to PTO and professional development, the right benefits package improves employee well-being and loyalty while reducing turnover costs. KBI Benefits specializes in designing tailored employee benefits packages that deliver measurable ROI. With our expertise, your business can reduce benefits expenses by up to 40% annually while maximizing the impact of your offerings. Speak with a KBI Benefits agent today to transform your benefits strategy and unlock your team’s full potential.