American Council of Life Insurers Statement on Paid Family and Sick Leave

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WASHINGTON, 23 Oct (TNSOps) – The American Council of Life Insurers made the following statement on October 22, 2021:

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President and CEO of the American Council of Life Insurers Susanne Neely today issued the following statement on paid family and sick leave:

“Establishing paid vacation for all is a common public policy priority, and at the heart of it is getting a benefit that is consistently and easily delivered to workers.

“The best way to get there is to dramatically expand what 62 million Americans have today, not want to lose. 92 percent of employees who have paid employer leave today say they are very satisfied./*

“In the employer-based system today: / **

* Insurers pay more than $ 11.3 billion annually for disability claims for employees who need time off from work to take in a child or to recover from illness or injury.

* Typical benefits include 22-26 weeks of paid vacation, with 60-70% of wages reimbursed.

* Insurers review more than 2.5 million applications for short-term incapacity for work (sick leave) annually, with 78% of applications being approved at the first review.

– The most common reasons for rejecting claims were “mistaken application” – the applicant is not covered by the policy; “Not received requested information”, “Applicant withdrew entitlement”, “Applicant returned to work” and “Applicant unable to work”.

* Insurers reviewed nearly 241,000 family vacation requests in 2020, with 81% approved on the initial review.

* Employer-based paid vacation systems are fast, with most applications paid in about 13 days on average.

“Americans across the political spectrum support a government-private scheme partnership that provides paid vacation leave for small business workers and the self-employed.

“A public-private partnership that ensures that market strength with new federal standards for coverage is the most effective way to get paid vacation for everyone. It really takes all of us.”

Footnotes:

* /Global strategy group (GSG) Online survey of DI insurance recipients who have received income payments within the last 10 years. May 2021

** / data compiled from ACLI research and the Society of human resource managers.


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