Lockton is the world’s largest independent insurance brokerage providing customized solutions to meet your organization's risk, benefits and retirement needs.

Our Global Community Impact Story

Read full report

1 / 5

Our job is very simple – to make our clients’ business better.
Businesses are looking to brokers for more than just transactions. They want an adviser who can help them reach their business goals. Lockton has been changing the conversation with clients by seeking to understand their business and help them view those goals through a new lens.

Uncommonly Independent

We bring creative thinking and an entrepreneurial spirit to the insurance business and are uniquely positioned to help you succeed.

See our story

Latest news & insights

The Saudi government recently passed amendments to the Social Insurance Law to support retirement benefits for a growing aging population by increasing the statutory retirement age, revising the old-age pension formula, raising contribution rates, and extending the contribution period required for early retirement. The new Social Insurance Law came into effect on 3 July 2024.Saudi Arabia introduces new social insurance reforms

Saudi Arabia introduces new social insurance reforms

article
The Saudi government recently passed amendments to the Social Insurance Law to support retirement benefits for a growing aging population by increasing the statutory retirement age, revising the old-age pension formula, raising contribution rates, and extendin ...
Read moreSaudi Arabia introduces new social insurance reforms

Mexico introduces a new mandatory day off on 1 October 2024

The Mexican Senate recently approved an amendment to the Mexican Federal Labor Law (FLL) moving an official mandatory holiday from 1 December to 1 October. The day off occurs once every six years to celebrate the inauguration of a new federal President. The Mexican Senate recently approved an amendment to the Mexican Federal Labor Law (FLL) moving an official mandatory holiday from 1 December to 1 October. The day off occurs once every six years to celebrate the inauguration of a new federal President.

Germany To Expand Occupational Pension Coverage

The German government introduced an occupational pension reform proposal aimed at making the existing voluntary occupational pension model more flexible and expanding workforce participation by strengthening the social partner model, among other changes. The draft Second Act to Strengthen Company Pensions and to Amend Other Laws (the “Draft Act”) was published by the Federal Ministry of Labour and Social Affairs on 27 June 2024 and a government draft bill revising the proposal was adopted by the cabinet 18 September 2024. It will now work through the legislative process and be submitted to the Bundesrat for approval. The legislation is not expected to be passed until early 2025. Read detailed analysis of the Draft Act from Funk Gruppe here: Important changes for retirement provision. Key details The most relevant changes introduced by the Draft Act are as follows: Social Partner Model One of the main goals of the Draft Act is to enable third-party companies—those not currently bound by an industry collective agreement—to participate in the “pure defined contribution” plan model currently reserved to companies participating in the Social Partner Model (Sozialpartnermodell, SPM). This should expand access to smaller employers not bound by any specific collective agreement. Their participation in the SPM defined contribution retirement is subject to final approval of the SPM managing parties and may require contribution toward the SPM’s operating costs. Automatic participation with opt-out Employers will be allowed to establish auto-enrolled deferred compensation plans provided the employer contribution is at least 20% of the employee deferral, the employees can opt-out, and the plan is based on an agreement with the company’s elected works council or staff council. (Automatic participation will not be available to companies that do not have an elected works or staff council.) Currently, automatic participation is only possible for companies under a collective agreement and the minimum employer contribution is 15% of the employee deferral. In all other cases, only opt-in deferral arrangements are permitted. Subsidy for lower income earners The maximum government subsidy amount of occupational pension contributions for lower income earners earner is expected to increase and will be indexed with the social security contribution ceiling. Severance Pay The Draft Act simplifies the termination of occupational pension plans processes by increasing the exiting severance pay on pension entitlements from 1% to 2% of the monthly reference amount in accordance with Section 18 of Social Code Book Four (SGB IV). Subject the employee agreement, the severance payment may be paid by the employer directly towards the statutory federal pension scheme. Pension payment modalities Currently, pension funds (Pensionfonds) are only allowed to pay out pension benefits as a lump sum or an annuity. The Draft Act would allow pension funds to pay out benefits in installments. Early retirement requests The Draft Act enables an early pay out of the occupational pension benefits for early claimants who are receiving a partial state retirement pension instead of a full state pension as is currently the case. Lockton comment Employers should monitor the legislative process to ensure proper compliance the ongoing pension reform legislation. Employers may start preparing for the upcoming changes by reviewing their existing voluntary occupational pension plans (if any), considering the pros and cons of an automatic participation model, or whether they would consider participating in an SPM plan should that option become available to them. The German government introduced an occupational pension reform proposal aimed at making the existing voluntary occupational pension model more flexible and expanding workforce participation by strengthening the social partner model, among other changes. The draft Second Act to Strengthen Company Pensions and to Amend Other Laws (the “Draft Act”) was published by the Federal Ministry of Labour and Social Affairs on 27 June 2024 and a government draft bill revising the proposal was adopted by the cabinet 18 September 2024. It will now work through the legislative process and be submitted to the Bundesrat for approval. The legislation is not expected to be passed until early 2025. Read detailed analysis of the Draft Act from Funk Gruppe here: Important changes for retirement provision. Key details The most relevant changes introduced by the Draft Act are as follows: Social Partner Model One of the main goals of the Draft Act is to enable third-party companies—those not currently bound by an industry collective agreement—to participate in the “pure defined contribution” plan model currently reserved to companies participating in the Social Partner Model (Sozialpartnermodell, SPM). This should expand access to smaller employers not bound by any specific collective agreement. Their participation in the SPM defined contribution retirement is subject to final approval of the SPM managing parties and may require contribution toward the SPM’s operating costs. Automatic participation with opt-out Employers will be allowed to establish auto-enrolled deferred compensation plans provided the employer contribution is at least 20% of the employee deferral, the employees can opt-out, and the plan is based on an agreement with the company’s elected works council or staff council. (Automatic participation will not be available to companies that do not have an elected works or staff council.) Currently, automatic participation is only possible for companies under a collective agreement and the minimum employer contribution is 15% of the employee deferral. In all other cases, only opt-in deferral arrangements are permitted. Subsidy for lower income earners The maximum government subsidy amount of occupational pension contributions for lower income earners earner is expected to increase and will be indexed with the social security contribution ceiling. Severance Pay The Draft Act simplifies the termination of occupational pension plans processes by increasing the exiting severance pay on pension entitlements from 1% to 2% of the monthly reference amount in accordance with Section 18 of Social Code Book Four (SGB IV). Subject the employee agreement, the severance payment may be paid by the employer directly towards the statutory federal pension scheme. Pension payment modalities Currently, pension funds (Pensionfonds) are only allowed to pay out pension benefits as a lump sum or an annuity. The Draft Act would allow pension funds to pay out benefits in installments. Early retirement requests The Draft Act enables an early pay out of the occupational pension benefits for early claimants who are receiving a partial state retirement pension instead of a full state pension as is currently the case. Lockton comment Employers should monitor the legislative process to ensure proper compliance the ongoing pension reform legislation. Employers may start preparing for the upcoming changes by reviewing their existing voluntary occupational pension plans (if any), considering the pros and cons of an automatic participation model, or whether they would consider participating in an SPM plan should that option become available to them.

Taking AI Risk Management to the Next Level

Artificial intelligence has taken off over the last year, presenting opportunities for businesses and other users to benefit from cost savings, the acceleration of key functions, and more. But data indicates that while many companies are also aware of AI’s potential risks, they are not investing in risk management strategies. Here’s what AI users can do to step up their risk management game. Embracing AI’s potential 2023 was the year in which businesses began to think seriously about AI, with many testing or evaluating potential applications. In 2024, we’ve seen the proverbial rubber meet the road. Through the first eight months of this year, companies have begun to realize substantial value from AI — especially generative AI. “After nearly two years of debate, the verdict is in: generative AI (gen AI) is here to stay, and its business potential is massive,” McKinsey declared in a report published earlier this month. “The companies that fail to act and adapt now will likely struggle to catch up in the future.” Other McKinsey data highlights how organizations have embraced AI, especially over the last year. Nearly three-quarters (72%) of organizations have now adopted AI in at least one business function, up from 55% in 2023, according to McKinsey (see Figure 1). In 2024, 66% of organizations report using generative AI in at least one business function, double the number of organizations that reported using it in 2023. Artificial intelligence has taken off over the last year, presenting opportunities for businesses and other users to benefit from cost savings, the acceleration of key functions, and more. But data indicates that while many companies are also aware of AI’s potential risks, they are not investing in risk management strategies. Here’s what AI users can do to step up their risk management game. Embracing AI’s potential 2023 was the year in which businesses began to think seriously about AI, with many testing or evaluating potential applications. In 2024, we’ve seen the proverbial rubber meet the road. Through the first eight months of this year, companies have begun to realize substantial value from AI — especially generative AI. “After nearly two years of debate, the verdict is in: generative AI (gen AI) is here to stay, and its business potential is massive,” McKinsey declared in a report published earlier this month. “The companies that fail to act and adapt now will likely struggle to catch up in the future.” Other McKinsey data highlights how organizations have embraced AI, especially over the last year. Nearly three-quarters (72%) of organizations have now adopted AI in at least one business function, up from 55% in 2023, according to McKinsey (see Figure 1). In 2024, 66% of organizations report using generative AI in at least one business function, double the number of organizations that reported using it in 2023.
See all news and insights

With a global footprint of over 100 offices, there’s sure to be one near you.

Find an office
*100+ Lockton offices and partner offices worldwide
Lockton blue globe

Ready to join the team?

We bring creative thinking and an entrepreneurial spirit to the insurance business. Search for available jobs in your area and apply today.
View jobs

We're here to help

We bring creative thinking and an entrepreneurial spirit to the insurance business and are uniquely positioned to help you succeed.

Ask an Expert