1. Making the case for Absence Management.

2. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.22 Purpose. Share key insights relevant to executive management, making the case for Absence Management and integrated program management as a productivity booster and key business strategy.

3. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.3 Introduction. When employees are out of work due to an illness, injury and/or leave of absence, their absence impacts the organization’s productivity. Absence Management and integrating programs can bring impressive results. Top advantages to implementing an integrated program as ranked by employers who integrate include 1 : – Consistent administration. – Better tracking or reporting. – Easier or better experience for employees. – Reduced costs. – Increased control. – Improved compliance. 1 Spring Consulting Group, LLC. 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010.

4. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.4 What is Absence Management? The management of lost work time, whether disability or non-disability related. Including: –Short-term Disability (STD). –Long-term Disability (LTD). –Workers’ Compensation. –Federal Family Medical Leave (FML). –State leaves. –Company-sponsored leaves. Consists of programs that can be implemented simultaneously or added and integrated over time.

5. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.5 Employer Market Landscape. Evolution of leave legislation, FMLA and State. Risk and benefit managers realize the potential legal exposure from mismanagement of leaves. 1 Silos breaking down within organizations 1 (risk and benefits management). 56 percent of U.S. companies plan to incorporate absence management within three to five years. 2 Growth of program integration 1, e.g., disability, Workers’ Compensation and leave management. 1 Spring Consulting Group, LLC. 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010. 2 Hewitt’s 2010 Road Ahead – Emerging Health Trends survey, Hewitt Associates, March 2010.

6. Over 1 million cases involving lost work days in private industry due to illness or injury. 1 Daily worker absence (all reasons) = up to 25 percent to 30 percent of an employer’s workforce. 2 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.6 Employee absence and productivity cost. More than $100 billion each year. More than $100 billion each year. 3 1 U.S. Bureau of Labor Statistics, www.bls.gov, “Workplace Injury and Illness Summary” news release, October 29, 2009, viewed on November 1, 2010. 2 www.dorlandhealth.com, Taming Disability, by Deborah Dibenedetto, February 1, 2009, viewed on November 1, 2010. 3 U.S. Bureau of Labor Statistics data, www.bls.gov, viewed on November 1, 2010. Total Cost of Absence:

7. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.7 Why Absence Management? Protocols and processes to effectively integrate programs. Comprehensive disability and leave management. Ease benefit, claims and leave administration. Effective work and non-work related return-to-work programs and our best practice models. Tracks and measures absence events. Provides employers with a broader view of absences. Reports and metrics to understand program performance, outcomes and trends. Helps improve employee productivity. 1 Improves employee and employer experience. 1 Spring Consulting Group, LLC. 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010.

8. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.8 How employers like you are benefiting. When asked, employers say the top six advantages to integrated programs are: 1 Consistent administration. Better tracking or reporting. Easier or better experience for employees. Reduced costs. Increased control. Improved compliance. 1 Spring Consulting Group, LLC, 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010.

9. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.9 ROI on Absence Management. Employers with integrated programs have experienced 11 percent savings in lost time, direct costs and return-to-work rates. 1 May reduce the risk of legal exposure on claims and leaves by treating all employee absence consistently and proactively. Potential savings in full-time equivalents from outsourcing your leave management program. 1 Spring Consulting Group, LLC, 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010.

10. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford. 10 The Hartford Productivity Advantage. A solution for managing and tracking absence events – both work and non-work related. Includes: –Workers’ Compensation. –Short-term Disability (STD). –Long-term Disability (LTD). –Leave Management (FMLA, State, & other leaves). Modular: Products can be implemented simultaneously or added and integrated over time.

11. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.11 Resources at your fingertips. The Hartford Productivity Lab: thehartford.com/productivity. Contact a Hartford representative. Using our Absence Advisor productivity tool, we can provide an estimate on the savings in FTEs that you might experience by outsourcing your leave management program.

12. The Hartford ® is The Hartford Financial Services Group, Inc. and its subsidiaries, including its administrative services companies, Hartford-Comprehensive Employee Benefit Service Company and Specialty Risk Services 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. 3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.