Moves That Slow Postal Delivery May Affect Insurers

August 19, 2020 by Allison Bell

Changes at the U.S. Postal Service could cause headaches for life insurers and health insurers that still depend on USPS mail to reach customers and prospects.

The postal service has been taking mail-processing machines out of some facilities, in an effort to cut costs, according to Vice.com and other news organizations.

USPS is supposed to fund its operations with mail delivery revenue, but it faces an unusual federal law that requires it prefund retiree health benefits. That means that it’s responsible for large retiree health benefits payments, in addition to having to deal with COVID-19 response expenses and competition from UPS, FedEx and the Internet.

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Originally Posted at ThinkAdvisor on August 14, 2020 by Allison Bell.