Millennials Present New Challenges to Insurance Industry Seeking Customers

Just as recently appointed Connecticut Insurance Commissioner Katharine L. Wade settles in to her job, the insurance industry is facing new challenges from a new generation. A former Cigna executive, Commissioner Wade has more than 20 years of industry experience and oversees a regulatory agency with jurisdiction over one of the largest insurance industries in the United States.  Hartford has long been considered the nation’s Insurance Capitol, so changes in the industry reverberate across the Constitution State.

It seems insurance companies have their work cut out for them when it comes to engaging their millennial customers. Of all the generations, millennials (born in 1980 to 1996) are the least likely to be fully engaged -- and the most likely to be actively disengaged -- with their primary insurer, according to a recent Gallup survey.

Millennials are the largest generation in the U.S. and will grow to dominate the market in the years to come, Gallup points out, adding that “insurance executives who neglect to take steps to engage this age group do so at their own peril.”

Insurance companies see substantial business gains when they engage customers of any generation, Gallup finds. Compared with their actively disengaged counterparts, engaged insurance customers are less sensitive about pricing when selecting and retaining a primary insurance carrier. They spend more and buy a wider variety of products, including financial offerings, from their insurer than do actively disengaged customers. They also stay with the company longer and are more likely to recommend it to others.

But building and maintaining customer engagement can be challenging -- especially for insurance companies with a diverse customer base. To raise millennials' engagement -- and thereby ensure a more engaged customer base in the future -- Gallup indicates that "leaders must understand how these young customers differ from others in their engagement and consumer behavior."  And they do differ, in substantial ways.

In its 2014 Insurance Panel study, Gallup uncovered insights into what drives millennials to start a relationship or stay in one with an insurance company. The analysis revealed many similarities across generations, but it also uncovered two important approaches to build relationships with millennials, and key factors that differ with past generations.

1. Family is key. Millennials are significantly more likely than other generations to have insurance coverage under a family member who chose the company. When their family members value an insurance company's brand, millennials follow suit. This finding contrasts sharply with older generations' prioritization of factors such as cost and company reputation.
2. Millennials are more likely to buy insurance online. Millennials are more than twice as likely (27% vs. 11%, respectively) as all other generations to purchase their policies online rather than through an agent. Online purchasing is far from the mainstream among insurance consumers overall -- 74% originally purchased with an agent vs. 14% online -- but if this trend among millennials continues to grow, it could substantially change the way insurance companies interact with customers in the coming years.

The bad news?  Millennials are least satisfied of any generation with the online experience, which could contribute to their generally low engagement overall with their primary insurer. Improving interactions with customers online is, therefore, a smart investment toward building strong relationships within this future mainstream customer base, Gallup points out.

As insurance companies consider ways to improve those relationships with millennial customers, Gallup suggests seven key areas worthy of attention:  information security, family incentives, specialized services,  ease of making changes to coverage online, ease of finding answers online, easy access to a range of online services, and overall ease of use in areas including account management, payment and website navigation.

Millennials’ distinctive attitudes also extend to car insurance and long-term care insurance, according to other recent surveys.

Cars are increasingly being rejected by many millennials in favor of public transit or other modes of transportation, including increasingly popular ride-for-hire services.  As a consequence, car insurance is taking a backseat among some, the website NerdWallet reported this month. According to a study by the U.S. Public Interest Research Group, Americans are driving fewer total miles today than eight years ago, and driving fewer miles per person than we did in 1996.  It is a reversal after decades of steady growth.

Millennials are less likely to drive — or even have a driver’s license — than previous generations. From 1983 to 2008, the percentage of Americans age 20 to 24 with a driver’s license fell from about 90 percent of that age group to just over 80 percent, according to a University of Michigan study, the website noted.  If you don’t own a car, you don’t need car insurance.

In addition, Forbes recently reported that many of the nation’s millennials think their boomer parents are doing a lousy job planning for their long-term care needs, according to a survey from Genworth Financial, a leading seller of long-term care insurance policies.

The Aging Across Generations study, conducted with the J&K Solutions research firm, found that 27 percent of millennials would give their parents or loved ones a “failing grade” due to not planning for, or talking about, their long-term care needs.  And the kids say they’ll do better, with more than half (56 percent) of millennials surveyed expressing the view that they will plan for their long-term care needs more effectively than previous generations.

Time will tell.  Other impacts on the industry are likely to be more noticeable more quickly.

CT Ranked #3, Bridgeport-Norwalk-Stamford at #5, Among States, Regions with Most College Degrees

Connecticut has the nation’s third highest rate of residents holding a college degree – and the greater Bridgeport-Stamford-Norwalk area has the fifth highest rate among metropolitan regions, according to a new report by the Lumina Foundation. The report reveals" real progress has been made" in the national effort to increase post-secondary attainment, but "current rates won’t be enough to meet America’s future economic and workforce demands." The annual report, A Stronger Nation through Higher Education, finds that “unless actions are taken now to significantly increase post-secondary attainment, the nation will fall short of workforce needs by the end of this decade.

Connecticut is making consistent progress on increasing attainment, according to the report. The most recent Census data (2013) show that 47.8 percent of the state’s 1.9 million working-age adults (those between the ages of 25 and 64) hold a two- or four-year college degree. This is an increase from last year’s rate of 47.5 percent and an increase from 46.6 percent in 2008. The state’s rate of higher education attainment is above the national rate of 40 percent.

A leading indicator of where higher education attainment rates are heading is the rate among young adults, those between the ages of 25 and 34. In 2013, this rate in Connecticut was 48.4 percent, higher than that of the adult population as a whole and also above the national rate of 41.6 percent.

According to the Georgetown Center on Education and the Workforce, 65 percent of U.S. jobs will require some form of postsecondary education by 2020. Yet, according the Lumina report, only 40 percent of working-age Americans (ages 25-64) held a two- or four-year college degree in 2013—the most recent year for which data are available. That figure is up from 2012, when the rate was 39.4 percent, and from 2008, when the rate was 37.9 percent, or a total of more than 2.8 million more degrees.

In Connecticut, 22.5 percent of residents ages 25-64 hold a bachelor’s degree, 17.1 percent have a graduate or professional degree, and 8 percent have an associate’s degree.  Eighteen percent have some college, but no degree, according to the data, provided by the U.S. Census Bureau’s 2013 American Community Survey.

Degree attainment in Connecticut, by ethnicity, was at 53 percent of Whites, 28.4 percent of African-Americans, 22 percent of Hispanics, 71 percent of Asians and 29 percent of Native Americans, according to the 2013 data. The progress nationally reflects incremental gains that the report authors say aren’t nearly enough to reach Goal 2025—a national effort calling for 60 percent of Americans to have a high-quality post-secondary degree, certificate or other credential by the year 2025.

The percentage of Connecticut residents (ages 25 – 64) with a college degree, by county, are:  Fairfield (53.8%), Middlesex (51.2%), Tolland (50.6%), Hartford (45.9%), Litchfield (44.6%), New Haven (43.4%), New London (41.1%), and Windham 32.1%).

In college enrollment, Connecticut exceeded the national average among residents age 18-24, but was slightly below the national average among residents ages 25-53.  Connecticut was below the national average among Hispanics 4.9% vs. 5.2%); slightly above among African-Americans, Native Americans, Asian Americans, and Whites.

“Economists and other experts give us good reason to be convinced that reaching Goal 2025 is a national imperative,” said Jamie P. Merisotis, president and CEO of Lumina Foundation, and a former Connecticut resident. “We have just 10 years to reach it, and our current pace of progress is insufficient for meeting employers’ workforce needs and addressing the growing inequality issues we face as a nation.”  Merisotis, testifying at the Connecticut General Assembly back in 2009, told legislators that "you will need to invest more in educating underprepared students than you do now. But invest you must. The alternative is a Connecticut far less prosperous and far less prepared to deal with the rapidly changing world in which we live."

A Stronger Nation estimates that if current trends continue, 30.7 million more Americans will earn college credentials by 2025. That increase will allow the nation to reach an attainment rate of 48.7 percent over the next 10 years—well short of the 60 percent needed to reach Goal 2025. To reach the Goal, Lumina estimates that another 19.8 million postsecondary credentials will need to be added.

Top 10 states—based on the percentage of adults (25-64) with at least an associate degree in 2013:

1. Massachusetts —51.5% (up from 50.5%)
2. Minnesota —48.1% (up from 47.7%)
3. Connecticut —47.8% (up from 47.5%)
4. Colorado —47.6% (up from 47.5%)
5. New Jersey —46.5% (up from 45.8%)
6. New Hampshire —46.4% (down from 46.7%)
7. Virginia —46.1% (up from 45.3%)
8. New York —46% (up from 45.1%)
9. Maryland —46% (up from 45.5%)
10. North Dakota —45.8% (up from 45.6%)

Among the nation’s metropolitan areas, the leading regions were:

1. Washington, D.C./Arlington-Alexandria, Va.—55.36%
2. San Jose-Sunnyvale-Santa Clara, Calif.—55.32%
3. Boston-Cambridge-Newton, Mass.—54.73%
4. Madison, Wis.—54.67%
5. Bridgeport-Stamford-Norwalk, Conn.—54.41%
6. San Francisco-Oakland-Hayward, Calif.—53.79%
7. Raleigh, N.C.—53.57%
8. Minneapolis-St. Paul-Bloomington, Minn.—51.80%
9. Albany-Schenectady-Troy, N.Y.—49.82%
10. Seattle-Tacoma-Bellevue, Wash.—49%

Primary School Teacher is Connecticut’s Most Common Job; Secretary Was For Most of Past Three Decades

What was the most common occupation in Connecticut in 2014?  Primary School Teacher. That’s according to data analyzed by National Public Radio, using U.S. Census data.  NPR checked the most common occupation in each of the 50 states, every two years from 1978 and 2014.

One of the key findings?  Farmers have virtually dropped off the map.  In only two states – North Dakota and South Dakota – were “farm managers” the leading occupation in 2014.  That compares with 8 states in 1978.

Primary school teachers were the most prevalent job in 2 states – New Hampshire and Alaska – in 1996. In addition to Connecticut, the other states in which Primary School Teacher was the leading job in 2014 were Alaska, Florida, Massachusetts, Rhode Island and West Virginia.

In 2014, the most common job in 4 states was “computer software developers” – Colorado, Utah , Virginia and Washington State.  The leading occupation in Washington, D.C.? Lawyers.

NPR points out that “through much of the '80s, as the U.S. economy shifted away from factories that make goods and toward offices that provide services, secretary became the most common job in more and more states. But a second shift — the rise of the personal computer — reversed this trend, as machines did more and more secretarial work.”

Connecticut’s most common occupation through the years:

• Secretary             1978, 1982-1994, 2004, 2008, 2010
• Foreman              1980
• Bookkeepers     1998
• Truck drivers      1996, 2000
• Nursing Aide      2002
• School Teacher 2006
• Primary School Teacher 2012, 2014

The NPR report points out that “driving a truck has been immune to two of the biggest trends affecting U.S. jobs: globalization and automation.”  The prominence of truck drivers is partly due to the way the government categorizes jobs, the report points out. It lumps together all truck drivers and delivery people, creating a very large category.

Other jobs are split more finely; for example, primary school teachers and secondary school teachers are in separate categories, as evidenced by Connecticut’s most common jobs – school teachers in 2006, primary school teachers in 2012 and 2014.

56 Women of Innovation Recognized; Girls Encouraged to Enter STEM Fields in CT

Fifty-six women, from across Connecticut, were honored for their innovation and leadership during the eleventh annual Women of Innovation awards gala, held this week. This awards program recognized women innovators, role models and leaders in the fields of science, technology, engineering, and math as well as outstanding women at the high school and collegiate level. “The Council is honored to recognize Connecticut’s most extraordinary and talented women representing a cross section of the state’s most important technology companies and educational institutions.” said Bruce Carlson, President and CEO of the Connecticut Technology Council.

Of the 56 women honored, 10 were recognized as category winners; there are two winners in both the Research and Collegian categories: Academic Innovation and Leadership: Medria Blue-Ellis, Principal, Engineering & Science University Magnet School; Collegian Innovation and Leadership (two winners): Sapna Gupta, Ph.D. Student, University of Connecticut, Monika Weber, Ph.D. Student, Yale University; Community Innovation and Leadership: Keshia Ashe, Co-Founder & CEO, ManyMentors; Entrepreneurial Innovation and Leadership: Christina Lampe-Onnerud, Founder & CEO, CLOTEAM LLC; Large Business Innovation & Leadership: Yu-Hui Rogers, Site Director, The Jackson Laboratory for Genomic Medicine; Research Innovation and Leadership (2 winners): Serap Aksoy, Professor, Yale School of Public Health, Radenka Maric, Connecticut Clean Energy Professor in Sustainable Energy, University of Connecticut; Small Business Innovation and Leadership: Lisa Braden-Harder, CEO, Appen; and Youth Innovation and Leadership: Anubhuti Mathur, High School Student, Glastonbury High School.

Presenting sponsors of this year’s event, held at the AquaTurf in Plainville, were Boehringer Ingelheim USA Corporation, Covidien, Day Pitney LLP, and United Technologies Corporation.

Efforts to interest girls in the STEM fields are underway elsewhere in Connecticut as well.  UIL Holdings Corporation is among the organizations encouraging girls to pursue careers in science, technology, engineering and math (STEM) by supporting three Generating Girls Opportunities (G2O) Expos.

These expos offer girls exposure to STEM fields, as well as the opportunity to participate in hands-on experiments.  The next G2O Girls & STEM Expo to be held April 10 at Central Connecticut State University.  It is a half-day interactive event for 9th and 10th grade girls introducing participants to all the possibilities of STEM (Science, Technology, Engineering & Math) through workshops and activities led by college professors and STEM professionals.

Activities are designed to inspire girls to question, create, design, test, explore, and more!  They learn about possible STEM careers and talk to colleges and employers to help them plan for the future. The expos, organized by the Connecticut Women’s Education and Legal Fund (CWEALF), are designed to engage the students and teachers in expanding educational opportunities in STEM programs and careers.

A study commissioned by the Girl Scout Research Institute found that girls are interested in STEM fields and aspire to STEM careers, but need more exposure and adult support to carry this interest into the future.  Additional expos will be held in West Hartford at the University of Saint Joseph on May 4 and at Mitchell College in New London on June 5.

The Connecticut Technology Council (www.ct.org), which organizes the annual Women of Innovation, is Connecticut’s industry association for the technology sector. CTC’s mission is to connect people, ideas and opportunities to the global technology and innovation community.

________________________________________

2015 Women of Innovation

Medria Blue-Ellis is the principal of ESUMS, a Magnet School of Excellence and CT School of Distinction. Her Curriculum expertise, creative thinking, and persistence are shared with the female STEM teachers she mentors. Her encouragement of female students to excel in STEM manifests in accomplishments such as the 2014 Verizon App Challenge State Finalist. Medria was one of 100 school leaders, educational advocates, and researches convened at the Jack Kent Cooke Foundation “Closing the Excellence Gap” conference.

Sapna Gupta is a graduate research assistant at the Center for Clean Energy Engineering and a Ph.D. candidate in materials science and engineering at UCONN. Sapna’s academic achievements, innovative research and creativity are evident in the many fellowships, distinctions, and awards she has received, including her honorable mention for the 2014 Baker Student Researcher award. She is founder and president of UCONN Keramos, and delegate of the ACerS PCSA

Monika Weber is a Ph.D. candidate in electrical engineering at Yale University and the co-inventor of Fluid-Screen, a small device that detects bacteria in 30 minutes. She has won the Grand Prize in the NASA “Create the Future” Design Contest 2011” and the Gold Prize in MassChallenge and received over $200,000 in technology and entrepreneurial awards. Monika combines leadership skills with strong technical expertise, creativity and business acumen.

Keshia Ashe is a Ph.D. candidate in chemical engineering at UCONN and co-founder and CEO of ManyMentors. ManyMentors is a STEM online and in-person mentoring nonprofit organization that connects university mentors with middle and high school students interested in STEM degrees and careers. She is a mentor, role model, TEDx speaker, and an unwavering advocate for STEM education in Connecticut.

Christina Lampe-Onnerud is known for her innovative work developing high-performance, low-cost, safe, environmentally-friendly batteries for portable electronics, electric vehicles and energy storage. She is founder of Boston-Power (IPO in 2016) and CLOTEAM, as well as holder of 80+ patents and author of numerous scientific articles. She was recognized as a Technology Pioneer by the World Economic Forum where she serves as an advisor on global innovation and renewable transport.

Yu-Hui Rogers is leading the JAX-GM Administration and Operation Team in establishing its new research institute in Connecticut. She was the vice president of Core Technology Development at the J. Craig Venter Institute where she was responsible for technology development and a large-scale genomic operation. She was instrumental in the development and implementation of a high-throughput sequencing pipeline that enabled the completion of the first human genome sequence at Celera Genomics.

Serap Aksoy is a professor at the Yale School of Public Health where she works on insects that transmit disease-causing microbes to animals and plants. She lectures internationally, maintains ongoing collaborative research programs, and has made landmark contributions to the functional and evolutionary aspects of insect-microbe interactions. Through her discoveries, she developed innovative methods that use beneficial bacteria to render insects inhospitable for disease-causing pathogens, thereby reducing their disease transmission potential.

Radenka Maric joined UCONN in 2010, where she focuses on developing new materials and novel structures for energy storage and conversion, structural ceramics and hydrogen production and separation. Previously, she was group leader and program manager at the National Research Council of Canada’s Institute for Fuel Cell Innovation, program manager at nGimat and senior scientist/team ILeader at the Japan Fine Ceramics Center in Japan. Radenka has published over 150 scientific papers.

Lisa Braden-Harder started her career in IBM’s research division, moving on to found the Butler Hill Group in 1993. There, she leveraged her background in linguistic products ranging from grammar checkers to search engines. In 2011, the company merged with Appen, an Australian company also engaged in taking devices to global markets. In 2013, she became CEO of the combined entity and in January 2015, led the company through an IPO on the Australian stock exchange.

Anabhuti Mathur conducts research at the UCONN Health Center and was a 2014 summer student fellow at The Jackson Laboratory. She was an Intel ISEF finalist, American Chemical Society award winner, National JSHS State Representative, Chemistry Olympiad Semifinalist, and the Anna Harrison award winner for top female scorer. Anubhuti captains Glastonbury’s Debate and Science Bowl teams, is president of the Medical Leaders Club, and runs a charitable multicultural dance organization.

Economic Report Finds “Significant Shift” in Destinations for State Exports

Connecticut has become more reliant on exports to drive gross state product growth during the past decade, according to a new report prepared by the Connecticut Economic Resource Center (CERC). In 2003, Connecticut exports as a percent of Gross State Product (GSP) stood at 4.5 percent, increasing to 6.6 percent of GSP in 2013. That growth, CERC points out, makes it “important to analyze Connecticut exports trends to understand how exports will impact Connecticut’s economy in the future.”

In 2014, approximately 46 percent of Connecticut exports were comprised of transportation equipment merchandise, which includes aerospace equipment. And approximately 45 percent of Connecticut exports went to four countries: France, Canada, Germany, and Mexico, according to the report, Eye on Economics – Export Trends for Connecticut.

Although Connecticut still has strong trade ties with Europe and the North American Free Trade Agreement (NAFTA) countries (Canada, Mexico), there has been “an obvious shift in export growth among its trading partners.”   From 2013 to 2014, Connecticut exports to South America and Asia increased overall, while exports to Europe, Oceania, and the rest of North America (mostly Canada and Mexico) were “generally flat.”

From 2003 to 2014, Connecticut exports to Asia increased by 182 percent, faster than exports to any other region, according to the data.   Economic growth in Asia was primarily driven by growth in China.

The shift in Connecticut export locations “can be partially explained by demand changes in regions that Connecticut trades with,” the report explains, citing changes in the appetite for exports in Europe and Asia. Europe, for example, has “experienced economic weakness since 2008 and has not fully recovered. It has been particularly hit hard by credit market constraints and unemployment, which has reduced consumptions levels, and thus demand for imported merchandise, the CERC report pointed out.

Looking ahead, the CERC analysis anticipates that Connecticut exports “may slow or remain flat” because of “weaker demand in Europe, where the majority of Connecticut exports currently go to; and Asia, which received the second largest amount of Connecticut exports in 2014.”

CERC is a nonprofit corporation and public‐private partnership that provides clients with objective research, marketing and economic development services. The organizations mission is to “provide services consistent with state strategies, leveraging Connecticut’s unique advantages as a premier business location.”

The report was developed by the CERC Research Department, including Alissa DeJonge, Carmel Ford and Matthew Ross.

Boston Children’s Hospital Delights with Interactive Wall Developed at UConn

It lives in Boston, but was built at UConn.  Boston Children’s Hospital’s recently installed Interactive Media Wall is an immense, high-tech, engagingly interactive product of the University of Connecticut’s Digital Media and Design program – a collaboration of students and faculty that is bringing smiles to children and families who encounter the massive 30-foot wall in the facility’s reconstructed lobby. For a team of animators accustomed to designing for screens a few inches across, the task of designing a scene three stories high was daunting – but a challenge they took on energetically.  The electronic wall consists of a large high-definition video screen, and a series of cameras and sensors that observe the presence and movement of people in the space below it, allowing people entering the space to control what appears on the screen.  It can be a powerful experience, for children and adults, as their movement defines the action on screen.

Rather than just showing a pretty picture, the wall hopes to offer some therapeutic benefit to the children who interact with it, in support of the mission of the hospital, which is widely considered one of the best pediatric hospitals in the world.

“The idea was to empower emotionally and physically challenged children to take control of something in their life, at a time when things were spinning out of control,” Tim Hunter, Department Head of Digital Media & Design and Director of the Digital Media Center told UConn Today.

How did a major healthcare facility in Boston connect with Connecticut’s flagship university for the project?

Prior to joining UConn’s faculty in 2007, Hunter spent 25 years developing and producing national and international design projects through his New York City based company. His areas of expertise are in digital animation design & production, digital media design & production, lighting design, scenic design and video projection design.

Through that firm, he had worked for many years with Boston-based Elkus/Manfredi Architects, which in turn worked with Boston Children’s Hospital on various projects.  When the project to renovate the facility’s lobby came along, the architects suggested that hospital leadership contact Hunter to see what he would envision as a centerpiece, interactive experience. 

It was a good match.  Initial work began on the project at UConn in the fall of 2011, accelerating during the spring 2012 semester.  Plans called for the UConn Digital Media Center faculty and students to develop a unique imaging and sensing system that would be controlled by guests of the hospital as they traveled through the lobby.  The work was completed in mid-November 2014, and has been well-received by patients, visitors and staff, earning a not-to-be-missed following.

The UConn team drew on the expertise of faculty members from a broad range of disciplines. Experts in child psychology, in human behavior, and in several disciplines of computer science and engineering contributed to the development of the installation.

That kind of collaboration was critical to the success of the wall, says Hunter, even though such projects are not usually developed at an academic institution. “A university is not the first place you would look for something like this,” said the industry veteran-turned-educator.

Among the students participating in the project were William Pritchard, interaction design and project management; Somaiyeh Ghaffarnia, animation and character development; Sean Dexter, 3D animation; Kevin Richetelli, 2D animation; Samantha Menza, game design; Tom Lee, game design and music composition; and Tiffany Hoang, game design. Prtichard and Ghaffarnia began working on the project as undergrads and continued while pursuing their graduate degrees.  The other students were undergrads.

UConn faculty involved in the project, along with Hunter, were Samantha Olschan, animation and character development; Mike Vertefeuille, technology and installation; and Zsolt Palatinus, data mathematician.  Also participating were staff member Michael Toomey, interaction design and project management, and CHIP members Tim Gifford and Christian Wanamaker, engineering and coding.

There may be more to come.  UConn’s Digital Design department – with students in Storrs and Stamford - and Boston Children’s Hospital now have an ongoing relationship, with plans for UConn to develop new interactive experiences for the next five years.

https://youtu.be/DD7gk2kHP3g

Women at Disadvantage in Seeking IPO Investments, Research Study Finds

A new study by academic researchers into decisions regarding the financing of Initial Public Offerings (IPO) of fledgling businesses has found "one significant and persistent effect on investor perceptions that did influence those evaluations—the gender of the CEO.” Even though women-owned firms represent almost half of U.S. new businesses, female founders and CEOs of start-ups fared poorly in an IPO simulation involving MBA students, the researchers found – a result of interest to Connecticut’s business start-up, venture capital, and entrepreneurial communities, at a minimum.

The study found that the amount of money that participants recommended for investment in a fictionalized initial public offering for a cosmetic-surgery company was almost 4 times higher if the CEO was identified as male.  In fact, the anticipated share price of IPOs led by male CEOs was approximately 11 percent higher than those of female-led IPOs, suggesting that bias explains why successful female-led IPOs are an "extremely rare phenomenon," the researchers point out.

The paper,recently  published and now available through the Social Science Research Network, was conducted by Lyda S. Bigelow, Leif Lundmark and Robert Wuebker of the University of Utah and Judi McLean Parks of Washington University in St. Louis.

“Skirting the Issues: Experimental Evidence of Gender Bias in IPO Prospectus Evaluations,” stresses that “given the impact of entrepreneurial activity around the world, the question of how entrepreneurs finance their ventures is a crucial question, as adequate capitalization for a new venture can make the difference between firm survival and failure. Whether a spin-off or start-up, firms that seek to grow beyond initial size at founding rely on the decisions of potential investors for the necessary financial resources.”

Given that women executives are present in the top management teams of IPO firms in increasing numbers, the lack of female-led IPO firms is a “curious fact, especially since women-owned private businesses represent almost half of the new businesses formed in the United States, with patterns of founding similar to male-owned businesses.”

In the study, using a sample of MBA students the researchers constructed a simulated initial public offering (IPO) manipulating the gender demographics of the top management team. Their results suggested that female CEOs “may be disproportionately disadvantaged in their ability to attract growth capital when all other factors are controlled.”

Despite identical personal qualifications and firm financials in the scenario, the study results indicated that:

• firms led by females were seen as having a poorer strategic position than those led by males,
• female Founder/CEOs were perceived as less capable than their male counterparts, and
• IPOs led by female Founder/CEOs were considered less attractive investments.

“The disparity is significant, as is its potential economic and social impact,” the researchers state. “If companies led by females are disadvantaged in their ability to raise cash through the stock market, it can impact the viability and financial health of their companies, their ability to expand and compete in an increasingly global and competitive environment, and if they are unable to remain viable, their employees’ livelihoods.”

The 43-page research report also suggests that gender bias may extend beyond IPO’s to other disciplines within the financial world, and urge additional study.

Future research, they suggest, “could explore whether or not these findings extend to financial professionals such as bank loan officers or venture capital investors, and could investigate the role that prior experience plays in that process. This is an important question, as financial professionals, making investment decisions for individuals and institutions, control enormous amounts of money (for example, the combined assets of the nation’s mutual funds exceed $7.4 trillion, retirement funds exceed $2.7 trillion, closed end funds exceed $20 billion and exchange traded funds weigh in at $174 billion,” the research team pointed out.

Photos:  Judi Parks (left), Lyda Bigelow

Questionable Patent Claims Push Small Businesses to Pay Rather Than Fight; Congress to Again Consider Reforms

The odyssey began with a letter.  The owner of an Old Lyme small business, providing employment services for people with disabilities, was told that by scanning documents into emails, she was violating a patent.  In fact, every scan meant a $1,000 fine.  Pay $75,000, she was told, or face legal action. She ignored the first letter, hoping it was junk mail.  When a second, “scarier, and more threatening” arrived, she contacted an attorney, who put her in touch with a patent attorney.

What was happening was a phenomenon described as patent trolling.  The New York Times has described patent trolls as “people who sue companies for infringement, often using patents of dubious value or questionable relevance, and then hold on like a terrier until they get license fees. In recent years, patent trolls — they prefer “patent assertion entities,” or P.A.E.’s — have gone from low-profile corporate migraine to mainstream scourge.”

Roberta Hurley, the small business owner in Connecticut, describes them as “creepy people,” intentionally frightening business owners with a “big scam.”  They depend on the unknowing to pay the outrageous demands, afraid of being taken to court.

The company making the demand could not be reached by phone, and the letter had nothing more than a Post Office box for an address.  But the tone was nonetheless daunting.

“If you’re scared, you don’t understand patent infringement, don’t have the funds to hire an attorney, which is true of many mom and pop businesses, it’s easier to write a check to stop them,” Hurley observed.

She couldn’t afford the $75,000 being demanded – “I would have had to close my doors” – and decided she would fight, and did.  “I wasn’t doing it,” she recalled.

It took time, effort and energy, and a bill from her attorney, but ultimately the demands stopped.  The entire process went on for nearly a year and a half, ending in 2013.  Along the way, she testified in Washington, went public to the news media, and told everyone she could what was happening.

Patent trolls may not have succeeded in this instance, but often do.  As The Atlantic pointed out in an article on the subject, “Given the cost, many defendants are willing to pay the troll to avoid a lawsuit even if the suit is not justified.”

In 2013, American courts saw six times as many patent lawsuits as in the 1980s, a Boston Globe op-ed by the authors of “Patent Failure” reported last fall.  “Over the past decade, there has been a 900 percent increase in the number of businesses facing patent litigation.”  They added that “recent research estimated that defendants spent at least $29 billion per year in out-of-pocket costs to defend or settle claims brought forth by patent trolls in 2011. Patent lawsuits by these entities drain an estimated $60 billion every year from the economy.”

Last month, a bipartisan group of 20 members of Congress reintroduced legislation aimed at reining in "patent trolls." A similar bill last year was approved by the House, but stalled in the Senate.  The legislation would express a sense of Congress that sending purposely evasive demand letters should be considered a fraudulent and deceptive practice, according to a published report in The Hill, a website that reports on Congress and the nation’s Capitol.

The Credit Union League of Connecticut is among the local and national consumer organizations urging approval of safeguards against patent trolls.  "Patent trolls often allege that the use of necessary everyday technology violates the patent holders' rights, state vague or hypothetical theories of infringement, often overstate or grossly reinterpret the patent in question, and make allegations of infringement of expired or previously licensed patents," the organization said in urging Congressional action.

The Connecticut Retail Merchant Association has also called for federal action, noting that “patent trolls are entities that threaten main street businesses with frivolous lawsuits over vaguely crafted or poorly worded patents. Usually, the patent troll wins a settlement because small businesses do not have the resources to fight it out in court. In fact, most trolls wouldn’t stand a chance to win and so they rely on scare tactics to extract a settlement, said Executive Director Tim Phelan in an op-ed published last year.  The National Retail Federation has pointed out that patent trolls "lose more than 90 percent of the cases that make it to trial. But the cost of defending companies against the claims is so high — the average case costs $2 million and can take 18 months — that many victims settle out of court. The cases cost legitimate businesses close to $30 billion a year in direct costs and $80 billion indirectly, amounting to $943 a year for the average household when passed on to consumers."

Authors Michael J. Meurer and James Bessen indicate, based on their research, that "there is no question that patent trolls cause immense harm. A recent survey of software startups found that nearly half reported “significant operational impacts” from patent troll lawsuits. These included a wholesale change of strategy or a shutdown of certain lines of business. Another survey found that roughly three of every four venture capitalists were adversely impacted by patent litigation."

Hurley, who has grown her Eastern Connecticut business (Southeastern Employment Services) from less than a handful of employees to 80 employees in just over a dozen years, says her advice to other small business owners is simple:  “don’t give them a penny.”  And she hopes that this will be the year that Congress approves patent reforms that will protect unsuspecting small business owners from “paying because they’re scared.”

3 Cities, 3 Towns from CT Take Up National Challenge on Pedestrian, Bicyclist Safety to Launch Thursday

Six Connecticut towns and cities are among the first 150 in the nation to respond to a challenge issued by U.S. Secretary of Transportation (USDOT) Anthony Foxx aimed at promoting bicyclist and pedestrian safety.  The year-long nationwide initiative will officially kick-off this Thursday. The chief elected officials of the cities of Hartford, Stamford, and Bridgeport, and the towns of Glastonbury, Simsbury, and South Windsor have signed on to the Mayor’s Challenge, announced earlier this year at the annual meeting of the U.S. Conference of Mayors.  The Mayors’ Challenge for Safer People and Safer Streets is a call to action by Secretary Foxx for mayors and local elected officials  to take significant action to improve safety for bicycle riders and pedestrians of all ages and abilities over the next year.

The challenge is based on the 2010 USDOT Policy Statement on Bicycle and Pedestrian Accommodation to incorporate safe and convenient walking and bicycling facilities into transportation projects. In the policy statements, USDOT recognizes the many benefits walking and bicycling provide — including health, safety, environmental, transportation, and quality of life.

The challenge calls on Mayors, First Selectmen and other chief elected officials to:

• Issue a public statement about the importance of bicycle and pedestrian safety
• Form a local action team to advance safety and accessibility goals
• Take local action through seven Challenge activities (listed below)

In Connecticut, the advocacy organization Bike Walk Connecticut is urging Connecticut's chief elected officials to participate in the challenge and engage their residents in carrying out the initiative’s objectives. They applauded Foxx, a former Mayor of Charlotte, N.C., for making “bicycle and pedestrian safety is his signature issue as the head of USDOT.”

The challenge activities, as outlined by USDOT, include:

• Take a Complete Streets approach
• Identify and address barriers to make streets safe and convenient for all road users, including people of all ages and abilities and those using assistive mobility devices
• Gather and track biking and walking data
• Use designs that are appropriate to the context of the street and its uses
• Take advantage of opportunities to create and complete ped-bike networks through maintenance
• Improve walking and biking safety laws and regulations
• Educate and enforce proper road use behavior by all

A total of 154 cities nationwide have signed on as of March 6, with the official kick-off later this week in Washington, D.C.  Additional municipalities in Connecticut and across the country are expected to add their names to the list of participating cities.  USDOT has invited Mayors' Challenge participants to attend the Mayors' Challenge Summit kick-off event at USDOT’s Headquarters’ office in the nation's capital on Thursday, March 12. The Summit will bring together participating cities to network and learn more about the Challenge activities, and USDOT staff members will share the resources and tools available to help cities with Challenge activities.

Federal officials note that the lack of systematic data collection related to walking and bicycling transportation, such as count data, travel survey data, and injury data, creates challenges for improving non-motorized transportation networks and safety. Communities that routinely collect walking and biking data, they point out, are better positioned to track trends and prioritize investments.

In advocating a “complete streets” approach, USDOT emphasizes that complete streets “make it safe and convenient for people of all ages and abilities to reach their destination whether by car, train, bike, or foot” and they call for “a policy commitment to prioritize and integrate all road users into every transportation project.”

Bike Walk Connecticut has reported that there were 49 bicycle or pedestrian fatalities in Connecticut in 2012, the most recent data available.  There were an additional 1,226 injuries to bicyclists or pedestrians.  In total, from 2006 to 2012, there were more than 10,000 injuries and nearly 300 fatalities from crashes involving pedestrians or bicyclists, according to the organization, based on federal and state data.

New “Digital Cookie” Program Brings On-Line Sales to Girl Scouts of Connecticut

Another time-honored tradition has transitioned to the digital age.  Girl Scouts are now selling their celebrated line of cookies on-line.  Connecticut is one of the Girl Scout Councils across the country to be participating in the inaugural year of the Digital Cookie program – and the response has been better than expected. The new Digital Cookie program strengthens, expands, and enhances the well-known and highly regarded Girl Scout Cookie Program by “combining the values and lessons of door-to-door and booth sales with crucial 21st century business and entrepreneurial skills,” official say, “continuing Girl Scouts’ long tradition of preparing today’s girls to be the female leaders of tomorrow.”

Here’s how it works:  Prospective cookie customers are able to purchase cookies on-line, after having been contacted by a Girl Scout. (Or you can tell a Girl Scout you know that you're interested in becoming a Digital Cookie customer.) Each scout has their own personal page thru which the cookies are ordered, so the scout will receive credit for the sale, just as when the transaction is completed in-person.  Officials say that some girls will market their online cookie business by inviting customers to visit their personalized cookie websites through a link sent via email.  Others will take in-person orders using a unique mobile app designed specifically for Girl Scouts.

“We were excited here in Connecticut to give our Girl Scouts the opportunity to participate in a pilot of Digital Cookie, a first-of-its-kind web platform that lets girls sell cookies from their own protected, personalized websites,” said Tiffany Ventura Thiele, Communications & PR Manager for Girl Scouts of Connecticut.

“Digital Cookie represents the next evolution of the iconic Girl Scout Cookie Program, adding a digital layer that broadens and strengthens the Five Skills girl learn, while introducing modern elements like website customization and e-commerce,” Thiele explained.

Those skills haven’t changed:  goal-setting, decision-making, money management, people skills and business ethics.  With the new on-line system, customers will be able to pay by credit card and have cookies either delivered by the Girl Scout or shipped.

Sales are running strong thus far.  To date, in Connecticut, nearly 38,000 packages have been sold on-line, with more than 2,500 girls participating.  In fact, orders placed in Connecticut have been shipped to 49 states and the District of Columbia, as well as to military personnel.  (If you’re wondering, nearly two million boxes of cookies were delivered this past weekend, based on initial orders taken by Girl Scouts in Connecticut.)

Nationwide, a majority of the 112 local Girl Scout councils are participating in the Digital Cookie program for the inaugural 2014–2015 cookie season, which began in January.  Additional councils expected to be on board by the end of the year, using an updated version of the program, which will be tweaked based on the feedback received from participating Councils.

Officials stress that “because 100 percent of the net revenue raised through the Girl Scout Cookie Program stays with local councils, when you purchase Girl Scout Cookies you’re not only getting a delicious treat — you’re also making an important investment in your community.”

There are two new cookie options locally this year:  Rah-Rah Raisins, an oatmeal cookie, and Toffee-tastics, a gluten-free butter cookie with toffee pieces.

An informal poll on the national Girl Scouts website asks visitors to vote for their favorite Girl Scout cookie.  The top three thus far:  Samoas (30%), Thin Mints (27%), and Samoas (13%).

If you’ve yet to place an order, there’s still time if you have a sweet tooth for Samoas, Thin Mints, Tagalongs, Do-Si-Dos, Savannah Smiles, Trefolis or the two new offerings.  The Girl Scouts of Connecticut’s cookie program will continue with booth sales through the month of March, so there’s still a chance to fill the cookie jar.