Retirement Insurers Adapt to Opportunity, Risks Under 401(k) Law

Business insurance underwriters who shield retirement plans when they run afoul of federal benefits laws are eying legislation Congress passed last year to encourage new 401(k)s as a growth opportunity, though they also anticipate hurdles.

Fiduciary liability insurers want to capitalize on what they’re hoping will be a wave of new small employers venturing into the private-sector retirement market and needing new coverage under the SECURE 2.0 Act (Pub. L. No. 117-328).

The law enacted Dec. 29 earmarks new tax credits for small employers to cover the costs of setting up a plan and will establish new starter-401(k) ...