A new life and insurance broker is being formed by a group of private equity firms. The broker called Insphere Insurance Solutions will be composed of The Blackstone Group, Goldman Sachs and Credit Suisse, according to a press release.

The plan is for the new company to become the nation’s largest independent career agent distribution group offering life, health, long-term care and retirement products for small businesses and the middle-income market. Phillip J. Hildebrand, a long-time insurance industry executive has been said to be the new company’s chief executive officer. Hildebrand said that the middle income market shall be the exclusive focus of Insphere Insurance Solutions. Major insurance carriers and agents have long ignored this part of the market and have gone off chasing after richer clients. Hence, there is an imbalance in the distribution of life insurances in the market.

With a force of 3,500 agents and offices in over 40 states by the company’s commencement in 2010, Insphere Insurance Solutions expects to be the largest independent career agent insurance distribution group in America.

According to a survey from a large consulting firm, nearly one out of every ten employers might consider dropping health benefits in 2014, when the health insurance exchanges are scheduled to open. Many companies that have over 25 employees offer health insurance to their employees. However, as health insurance and health care continue to become more costly, many employers are saying that it is too much for their bottom line. Employer-sponsored health insurance is still the highest contributor for health insurance companies as far as participation. Many experts are predicting though that those numbers will drop significantly by 2014.

The health reform laws was enacted last year to give consumers an opportunity to purchase health insurance at an affordable price. Individuals and small businesses can purchase from the health insurance exchange in 2014, and may also receive government subsidies if they qualify. The survey shows that some employers will drop the insurance and have their employees get insurance through the exchange. Companies would rather pay the fine then continue to have the high cost of health insurance on their bottom line.