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Summer 2007 / No. 72
Predictions by Eastbridge Consulting Group echoed in recent ERISA Industry Committee proposal
On June 9, 2007, ERIC (The ERISA Industry Committee) unveiled a proposal that included the establishment of a new form of intermediary in the benefits industry. The proposal calls these new institutions “Benefit Administrators” and describes them as offering “lifetime security benefits—health, retirement, and short-term savings.” The industry group hopes the proposal will become part of future legislation.
In 2002, Eastbridge Consulting Group published 2020: A Clearer Vision of the Future. This report described the benefits industry in the year 2020 and included detailed predictions by Eastbridge consultants. It covered distribution, carriers, products, financing and intermediaries.
In the section on intermediaries, we predicted a new type of intermediary, the “Benefit Administrator.” These new types of companies would combine the functions of today’s benefit TPA, HRIS company, and broker-dealer in order to offer a full array of benefit products: protection (life and health), savings (short-term accounts), and retirement plans.
“While the ERIC proposal goes on to other topics, it’s amazing that the name of the institution, its primary function, and its business lines are exactly as we predicted five years ago,” commented Bonnie Brazzell, vice president at Eastbridge.
Eastbridge president Gil Lowerre explained, “Of the dozens of predictions captured in the 2020 Report, many have already arrived in the marketplace, and this ERIC proposal represents the emergence of another important aspect. While seen as very controversial in 2002, the predictions in 2020: A Clearer Vision of the Future are coming into focus.”
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