Solutions to Address Employee Financial Stress Given their prioritization of employee productivity, survey respondents are also concerned about employee financial stress and are taking steps to support their workforce. Employees report a loss of more than seven hours of productivity per week due to financial stress, amounting to an annual cost of $183 billion for U.S. employers.5 Inflation has taken a toll on both short-term and long-term savings. • A record-high 3.6% of participants took hardship withdrawals from their 401(k), up from 6 2.8% in 2022. This increase has been attributed to inflation, rising interest rates and changing rules that make it easier for people to access these funds. • Home insurance rates rose an average of 11.3% in 2023 due to severe weather, inflation 7 and rising homebuilding costs. The most expensive states for home insurance are Florida 8 ($11,759), Louisiana ($7,809) and Oklahoma ($5,711). 9 • Rising auto insurance premiums have impacted 67% of Americans. According to our survey, companies in both the U.S. and Canada are trying to reduce employee financial stress by offering personal insurance coverage options. • 78% of middle market firms and 74% of upper middle market firms are considering offering personal insurance coverage options in 2025. • Currently, 22% of business leaders are offering auto/home/personal insurance solutions to employees. Companies across various industries are also actively taking steps to boost retirement plan participation. According to our survey, the primary areas of focus are: • Requesting additional support from retirement plan providers (37% in the U.S., 38% in Canada). • Provide counseling to help employees understand their retirement plan (39% in Canada). 5. BrightPlan, “New Study: 86% of Gen Z Workers are Stressed About Their Finances Reporting Over 8 hours a Week in Lost Productivity, “ April 30, 2024 6. Vanguard, “How Americans withstand financial hardships,” September 19, 2023 7. S&P Global, “US homeowners insurance rates jump by double digits in 2023," January 25, 2024 8. Insurify, “Average Cost of Home Insurance (October 2024),”Accessed November 3, 2024 9. Prudential/Assurance IQ, “Study: Home and auto insurance cost increases stretch Americans’ budgets,” October 5, 2023 17 | HUB International 2025 North American Outlook Report