With providers and the government taking a greater interest in health provision through the workplace, should IFAs become more active in the health and welfare of those individuals in their group business?
Howard Hughes, Simplyhealth
Simplyhealth’s Bothered Britain report found that 88% of companies believe that proposed changes to public spending will lead to employees taking a greater interest in their own health. Also, 44% of companies say they will be looking to increase their range of healthcare benefits, with 33% doing so through concern for employee wellbeing.
With this in mind, intermediaries would be wise to see this as an opportunity to talk to new and existing clients about ways to develop their health and wellbeing strategy in order to gain an additional stream of revenue. This year cash plans have seen their biggest growth in the corporate arena. According to the Laing and Buisson Health and Care Cover Report 2010, the volume of company paid cash plan contributors has increased from 230,000 at the end of 2006 to an estimated 399,000 at the end of 2009. Companies are attracted to cash plans as they benefit employer and employee alike. It’s a way of supporting employee health, taking the pressure off their finances, particularly during difficult times. They encourage regular health appointments and therefore help to keep employees healthy and at work.
The need for companies to support their employees health and wellbeing looks set to grow. It could be argued that it’s in an intermediary’s best interests to approach its clients with healthcare solutions for all. If they don’t, then it could be an opportunity missed.
Paul Avis, Canada Life
Let’s start with a positive; good health is good business. If IFAs want to assist employers to create a positive impact on an organisation’s bottom line, focusing on health-oriented benefit packages is crucial, especially in testing economic times.
Attracting and keeping employees who are productive, well and motivated, should be a priority. With the government reviewing the welfare budget, employees will be worse off if they are unable to work, without support from their employer.
Group income protection (GIP) provides an income for the employee while they are unable to work through incapacity, topping up state benefits. Critical illness (CI) cover provides financial assistance in the form of a lump sum to help employees at a time of serious illness. The additional components that come with GIP should be considered rather than purely price based decision making and advisers should actively promote them when installing benefits.
Employee assistance programmes give employees access to confidential counselling sessions, advice and online information on maintaining a healthy lifestyle.
Claims management services work for both employer and employee and provide rehabilitation support for employees who can return to work while helping employers meet responsibilities under the disability discrimination and equality legislation.
In a time of prudent financial management, when more reliance is being placed on employers, these benefits tick all the boxes and help keep employers compliant with an increasing legislative burden.
Kim Strugnell, Xafinity Consulting
Over 80% of companies use professional advisers to help source their health-related benefits. This is traditionally conducted at corporate level with the benefit recipients (employees) having them delivered directly via the service provider.
Direct engagement with employees is usually limited to the distribution of company-sponsored, products and services. It is difficult to see advisers becoming more ‘directly engaged’. By providing impartial advice to the corporate and representing their client’s best interests when giving advice, might there be conflicting interests in taking that model down to the level of the individual employee?
Much depends on the employer’s consent. While all employers state that they want a healthy workforce, they will not condone any third party spending ‘too much’ time actively promoting health in work. They could take the view that raising the profile of workplace health may create unwanted issues around ‘Health & Safety.
On the adviser side, how many would really have the processes in place to engage directly with individuals in the group business? You could interpret this as conducting direct marketing campaigns of health-related products. There is the question of employer permissions, and data protection and regulatory requirements.
And what about the employees? How would they react to an overt ‘marketing campaign by third parties, sponsored by their employer? Great, if all goes smoothly, but disastrous for the company and the IFA if things go pear-shaped. Workforces may be suspicious of the campaign’s motives, especially when many are currently experiencing benefit cuts.
Peter Le Beau, Le Beau Visage
The zeitgeist in group protection at the moment is around absence management and employee assistance programmes simply because more and more small to medium enterprises (SMEs) have to scrutinize their costs.
Staff costs absorb the most expenditure and it is vital to ensure that staff are as productive as possible. A 10% saving here can make a serious contribution to reducing cost, especially across a workforce of 50 people or so.
IFAs could usefully target the SME market, as many larger employee benefit consultants tend to focus on bigger businesses and there is a danger that smaller firms can be overlooked.
Most SMEs have a range of protection needs and it makes sense for any adviser looking at opportunities to discuss with the owners what their needs are.
Any serious health problem or injury can have a major effect on a business, especially one looking to cope through a period of recession.
Advisers need to ensure they are able to work and plan with SME clients and to help them look at absence management seriously. A few years ago a greater spirit of paternalism prevailed and employers provided fringe benefits as a necessary way of attracting staff.
Now the pendulum has swung and the rationale for absence management is to make sure that staff get back to work as quickly as possible and do not spend unnecessary and unproductive time waiting for treatment or operations on the NHS.
In a tough market advisers should take care of business by taking care of the businesses they know.
