Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 GROUP BENEFITS Stand Out in Small Business with Risk and Absence Reduction Strategies Services to help your customers improve their businesses while helping to grow your book

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Disclaimer Information conveyed in this presentation should not be construed as legal advice. Information provided in this presentation is for educational purposes only. No part of this presentation may be reproduced, published or posted without the permission of The Hartford. This webinar and conference line are being recorded. 2

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Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 5 Today’s Presenters 5 PRESENTER: Donato Monaco Vice President, Small Business Group Benefits PRESENTER: Maggi Walsh, MS, CRC, CDMS, CCM Group Benefit Technical Manager Loss Control FACILITATOR: Robert Hayes The Hartford School of Insurance

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Webinar Objective Highlight the needs of Small Business owners in the ever-changing Benefits marketplace. Offer strategies focused on reducing risk and absenteeism by showcasing how The Hartford’s tools and services can help you differentiate yourself in a crowded marketplace resulting in: New Sales Higher Retention 6

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Webinar Agenda SMALL BUSINESS Sales and Service Capabilities SMALL BUSINESS CHARACTERISTICS Opportunity for You to Stand Out WORKFORCE DISABILITY TRENDS Things to Know WORKFORCE SAFETY & ABSENCE MANAGEMENT Actionable Solutions QUESTION & ANSWER SESSION

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Experience Over one million small business customers 60+ years providing group benefits Leadership A top four provider of Group Life and Disability insurance nationally 1 Number one provider of Accidental Death & Dismemberment 1 Trust Named one of the world’s most ethical companies for five consecutive years 2 The Hartford and Small Business Positioned to help you succeed in the under-50 employer market 1 LIMRA’s U.S. Group Disability and Life Sales Report, 2012 full-year results; based on inforce premium. 2 The Ethisphere Institute,

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 The Hartford’s Small Business Center Premier Experience Dedicated team responsive to producer needs who offer a keen understanding of the small business marketplace to help you win with 4-49 employee groups Constantly Evolving DisabilityFLEX SM voluntary product offering for 10+ employee groups Web-based solution to enable real-time quoting National expansion of our dedicated Small Business Sales Executive team Naturally Slim ® wellness solution for Small Business employers 9 Coming Soon! Expansive Product Portfolio Employer and employee paid disability and life solutions for your employer clients to attract and retain top talent Differentiated offerings and value added services to set yourself apart in a crowded marketplace

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Small business owners rely heavily on their producer/agent for advice on benefits - nearly 60% seek information and advice 1 Current market dynamics Affordability is the primary reason why small employers do not offer benefits 1 Contributory and employer-paid benefits trending up (vs. Voluntary) in Small Business 1 Medical reform is impacting all sized businesses To succeed in today’s landscape produces need to provide employers solutions that help: Reduce total cost of insurance and absenteeism Enhance employee productivity Attract and retain top talent Small Business Characteristics 10 1 LIMRA’s “No Small Matter How Small Businesses Make Decisions About Employee Benefits”, 2013

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 What solutions can producers offer to help clients improve bottom line results? 11

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Producers Cite Risk Management Services as “Valuable” to Small Business Employers 98% said Return-to-Work Resources would be valuable 93% said Safety Programs & Practices Assistance would be valuable 92% said ADAAA Employer Help Line would be valuable 88% said Ergonomic Evaluation Support & Tools would be valuable 81% said Job Analysis Guidance would be valuable We asked producers how valuable each of the risk management tools listed below would be to their clients that have 4-49 employees. Here’s what they said 1 : 1 The Hartford's Group Benefits Producer Opinion Survey, July 2013 – Combined rating of Somewhat & Extremely/Very Valuable Scores 12

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Workforce “Preservation” Disability Incidence Aging Workforce Impacts Trends & Types of Disabilities Effect on Businesses Profitability Legislative Concerns 13

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Predicted Growth of the Aging Workforce 14

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 The New Older Workforce Shortage of (younger) workers by 2025 Older Workers: Will remain in the workplace due to economy Tend to have fewer injuries but take longer to recover Are impacted by more chronic diseases 15

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Potential Risk Factors Non-occupational Obesity De-conditioning Smoking Family history Occupational Ergonomics Slips and Falls Driver Safety 16

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 The Facts Speak for Themselves Disabling injuries or illnesses can be strong drivers of employee absences The millennial generation is not immune to disability risk Neither are healthy Gen-X'ers! 17 The Hartford’s STD & LTD claim data 1 : 72% of claims incurred by workers age 40+ In LTD, this figure rises to 83% 1 Hartford Claim Data 2013

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Aging Population = More Limitations Prevalence of Disability by Age 1 1 Department of Health and Human Services

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Age and Impact on Claim Durations AGE BANDS DURATION DAYS STD CLAIM POPULATION 1 LTD CLAIM POPULATION 1 AGE BANDS DURATION MONTHS 19 1 Hartford Claim Data July 2012

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 The “24 Hour” Risk Short-Term Disabilities 1 Causes of Worker’s Comp Injuries 1 Long-Term Disabilities 1 Leading Occupational Disabilities 1 Joint/Back/Spine Disorders Cancers Female Reproductive Disorders Fractures Muscle/Tendon/ Soft Tissue Injuries Cancers Joint/Back/ Spine Disorders Muscle/Tendon/ Soft Tissue Injuries Fractures Depression Overexertion (lift, push, pull) Slip and fall Repetitive motion Struck by Lumbago Lumbar strain Thoracic or lumbosacral neuritis Neck sprain Shoulder pain 20 1 Hartford STD, LTD and Workers Comp Data from 2011

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 The “Ouch” (Bottom Line Pinch) BUSINESS IMPACT Unscheduled absences cost employers Lost productivity Hard costs that can reduce the bottom line Employee Perspective: A number of adult Americans have no emergency savings May not be able to cover expenses if employment was lost May not be able to cover expenses for more than 3 months 21

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Big Concerns for Small Business Companies with 15+ employees Not every disability is a ADAAA qualifier…but… Specific process employers need to follow Complexity comes from the “gray areas” in the law Americans with Disabilities Act Amendment Act (ADAAA) 22

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Strategies – “Back” to Basics Job Analysis Workstation or Ergonomic Interventions RTW Program Process Safety Training & Programs ADAAA Resources 23

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Workforce Safety & Absence Management Help small businesses reduce loss and absenteeism. 24 ASK the Consultant

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Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Wrap Up / Summary Small Business Owners – Same Employer Obligations, but Fewer Resources Aging Workforce Will Impact Business Large & Small Access to Resources Typically Reserved for Large Employers The Hartford’s Workforce Safety & Absence Management Solutions Coming Soon 26

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Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Call to Action! Write business with The Hartford’s Small Business Center –Competitively priced insurance solutions –Premier pre-sales and ongoing support –Differentiated value-added services including Workforce Safety and Absence Management for Small Businesses Visit and share our new Workforce Safety and Absence Management website with clients and prospects –thehartford.com/workforce-safety-service 28

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 Contact Info For employer groups with 4-49 lives, submit quote requests and RFPs directly to the Small Business Center 29 CONTACT US: Call Toll Free: (M-F, 8am-8pm EST) Web:theharford.com/gbsmallbusiness

Copyright © 2013 by The Hartford. All rights reserved. No part of this document may be reproduced, published or posted without the permission of The Hartford NS 09/13 The Hartford ® is The Hartford Financial Services Group, Inc. and its subsidiaries, including its administrative services company, Hartford-Comprehensive Employee Benefit Service Company and issuing companies Hartford Life Insurance Company, Hartford Life and Accident Insurance Company and Hartford Fire Insurance Company. All non-property and casualty policies sold in New York are underwritten by Hartford Life Insurance Company. The home office of Hartford Life Insurance Company is Simsbury, CT. All property and casualty policies are underwritten by Hartford Fire Insurance Company, Inc., and its property and casualty affiliates, Hartford, CT. This document outlines in general terms certain benefits and services that may be afforded under a Hartford policy or service contract. In the event of a conflict, the terms and conditions of the policies and contracts prevail. All Hartford policies and services described in this document may be offered by one or more subsidiaries of The Hartford Financial Services Group, Inc. The Hartford does not provide legal advice related to ADA compliance. The information contained herein is not to be construed as legal advice and is informational only. For legal advice, please contact the counsel of your choice.