SOURCE: Kennedy Consulting Research & Advisory

Kennedy Consulting Research & Advisory

August 24, 2011 16:30 ET

Managing Pension Risk and Healthcare Costs Top List of Client Concerns

Kennedy Finds These Key Issues Driving Benefits Consulting Demand Among HR Vice Presidents, CFOs and Benefits Directors

PETERBOROUGH, NH--(Marketwire - Aug 24, 2011) - Healthcare costs are increasing more rapidly than GDP in many nations around the world. In the US market alone, the largest global consumer of healthcare consulting services, healthcare costs are expected to increase even more rapidly throughout the forecast period as a result of reforms associated with the Patient Protection and Affordable Care Act.

According to new research from Kennedy Consulting Research & Advisory, Benefits Consulting Marketplace, analysis reveals that the amount of money at stake in pensions and healthcare benefits is significant. Compliance issues obviously must be managed. But, when companies in a given year have to come up with tens or hundreds of millions of dollars to make up for pension investment shortfalls -- and find a way to fund or prevent an increase in their health premiums for workers each year -- executives are going to be looking for rapid and effective solutions.

"These problems might be fairly universal, but the solutions are not -- which is where benefits consultants are positioning themselves," according to Derek Smith, HR Consulting and Services Lead and Senior Director for Kennedy Consulting Research & Advisory.

Kennedy analysts also anticipate continued consolidation in the benefits market, especially in the retirement consulting arena. They portend that deal size will be small, and larger firms will look for tuck-in acquisitions that will expand their services or geographic coverage.

Benefits Consulting Marketplace rates the competitive capabilities of today's leading benefits consulting providers and assesses their capabilities in terms of both breadth and depth. Among the firms profiled are: Alexander Forbes, Aon Hewitt, Buck Consultants, Deloitte, Ernst & Young, Gallagher Benefit Services, Hymans Robertson, Mercer, Milliman, Morneau Shepell, PwC, The Segal Company, and Towers Watson.

About Kennedy Consulting Research & Advisory

Since 1970, Kennedy Consulting Research & Advisory has been the world's leading source of market analysis on the Management and IT consulting industries, serving the most highly regarded professional services firms and Fortune 500 companies across the globe. Kennedy's stand-alone consulting advisory unit, Kennedy Information Advisors, provides results-oriented strategic guidance to buyers and sellers of consulting services.

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