First off, what is an acquisition? When one company buys out another in order to combine forces in a particular marketplace, it’s called a company acquisition.
Company acquisitions and mergers occur all the time. These are common strategies that companies use in order to help their businesses grow.
However, company acquisitions and mergers are far less common in the insurance industry as they are in other industries. So what happens to customers when disability insurance companies go through acquisitions and mergers?
In theory, when two prominent industry figures merge, their brands can improve each other more effectively than they can when they work separately. The idea behind this is that the two brands will then share resources with respect to talent and innovative technology, which in turn, should improve customer experiences.
Additionally, mergers and acquisitions allow both companies to become more economically sustainable by having the ability to scale up and accept a larger customer base.
While company acquisitions and mergers may seem like they offer nothing but positive impacts for companies and customers alike, this may not always be the case.
Read on to learn more about company acquisitions and some of the recent disability insurance company acquisitions that may affect your eligibility for benefits.
New York Life & Cigna Acquisition
In December 2019, New York Life announced that it would acquire Cigna’s group life and disability insurance business for $6.3 billion. Acquisitions tend to take time, which is why the buyout isn’t predicted to close until the third quarter of 2020.
“This transaction increases the value we can deliver to our policy owners, strengthens our well-defined business model, and adds millions of customers to the New York Life family,” claims the Chairman and CEO of New York Life, Ted Mathas. "Cigna's group life and disability business enhances our portfolio of strategic businesses and is led by an experienced management team and high-quality workforce, who we look forward to welcoming to our company. We are fully committed to making this transition as seamless as possible for employees and clients alike."
The Hartford & Aetna Acquisition
In 2017, The Hartford agreed to acquire Aetna’s United States group life and disability insurance business for $1.45 billion cash. The Hartford claims that their group benefits distribution capabilities are improved as a result, as well as the advancement of their technology strategy.
According to The Hartford Chairman and CEO Christopher Swift, “The transaction provides a unique and accretive opportunity for The Hartford to become the second-largest group life and disability insurer, an important business for The Hartford with a stable risk profile, attractive returns, and strong long-term growth prospects.”
Hub International Acquires Disability Book of Business
On August 16, 2019, Hub International Limited (Hub) announced that the company hired Brian Allain, a disability insurance specialist, who had formerly worked for Certified Financial Services LLC since 2017. When Brian Allain came to Hub, he brought his entire book of business with him. Before going to work for Hub, Allain provided group and executive disability products to healthcare professionals.
Hub’s main reasoning behind this hiring decision is to promote organic growth while increasing geographic impression and bolstering industry and product expertise.
What You Can Expect As A Result Of The Acquisitions
While company acquisitions exist in order to help businesses grow so that they’re better able to serve their customers, this may not always be the result when companies acquire one another.
In fact, many experts predict that even more disability claims will be denied as a result of the recent acquisitions and mergers.
Think back to anytime you experienced a major change in your life—personal or work-related. Did the transition go smoothly? Just as you’d expected? Or were there some hurdles along the way that may have had long-term impacts?
Companies are all just made up of a bunch of humans that are capable of making errors and becoming overwhelmed. When two massive conglomerates join forces, there are a lot of complications to overcome so that business can run smoothly again.
Don’t be surprised if your claims with any of the aforementioned businesses (and even those not mentioned) are initially denied, as this is likely to happen. Their businesses may end up leveling off within a few years, but change takes time.
If you think that hiring an attorney to help you obtain disability benefits seems unnecessary, think again. With all the recent acquisitions and mergers, there’s never been a more crucial time for you to hire an attorney to help you obtain the benefits you need.
Don’t become frustrated by a denied claim—just hire an experienced attorney to handle it all for you. Your chances of receiving the benefits you need are much greater when you have a skilled attorney on your side fighting for you. The last thing you want is to be caught without benefits when you need them the most.
We’re Here to Support You
If you wish to hire a lawyer to help you obtain the disability benefits you need, our attorneys at Dabdoub Law Firm are here to help. Our team is highly skilled in the realm of disability insurance law and we’ve helped many other people in situations just like yours obtain the benefits they deserve. Don’t hesitate to contact our firm with your case right away. Your health is nothing to leave to chance. After all, you’re only awarded one body in this life—it’s your responsibility to take care of it.
Call Dabdoub Law Firm today at (800) 969-0488 to speak with an attorney about your case.