The Government's new Fit Notes are intended to encourage a dialogue between the employer and employee to identify ways the employee can be supported back to work. Is this system an adequate solution, and can the Group Income Protection (GIP) market benefit from it?
Alan Lakey, Highclere Financal Services
The intention is to bridge that wide gap between being able and unable to work. Illness and injury can differ by degrees so while some aspects of the previous occupation may not be possible there may be features that the employee can continue to perform.
Some may consider this a move to weed out the work-shy and although this element does exist it should also be considered as a positive move towards worker rehabilitation.
Absence from the workplace can be problematic for some employers as well as the employee, particularly where they have to replace that individual temporarily, such as a driver being unable to drive. There is a clear symmetry here with the employer and the GIP insurer wanting the client back to work as soon as feasible.
It is impossible to devise a perfect system but this will assist in efforts to re-train staff or alternatively redeploy them in a manner agreeable to all parties. Insurers are increasingly flexible as to how to deal with claims, paying for private treatment being one such example, and they will see this as an incentive to liaise with the firm and employee to find out if some worthwhile solution exists.
This should reduce absenteeism which will reduce claims. Theoretically this should result in lower premiums and maybe this will lead to a greater take-up of group IP. There's a lot of ifs and maybes here and much will depend on the reaction of GPs and the subsequent mindset of employees.
Richard Waterton, Legal & General Group Protection
There is some skepticism about how the new system will work and it is anticipated that it will take some time to bed in. The key to it is for the employer to decide whether or not an employee can be accommodated within the workplace. Dr John Delfosse, Legal & General's consulting medical officer and practising GP said: "We were only given guidance on the new scheme in February and unfortunately with appointment times of 10 minutes or less, it is unlikely that we will have time to discuss the patient's occupation and fully assess their capabilities."
As a result, GPs are likely to either continue to sign off employees as unfit for work, or choose the ‘may be fit for some' work option. They are then likely to tick all the available options or, at best, offer impractical suggestions, thus passing the onus on to the employer.
The extent to which an employer will have occupational health expertise to deal with a returning employee will vary enormously. Those with a GIP scheme have access to experienced benefit managers who are used to issues such as health and safety legislation and the Disability Discrimination Act. They are also able to provide specialist assessments which can help return the employee to full fitness as quickly as possible.
An employer with no access to specialist advice may well have no option but to send the employee home until the end of the stated absence period. With GIP schemes offering limited term options to control the employer's cost, the fit note may be another reason for an employer to tap into the insurer's expertise and help keep their staff at work.
Catherine Baxter, Bupa Health Assurance
The introduction of the Fit Note is a step in the right direction.
In contrast to the view that people who are ill need to be ‘protected' from work, GPs are being encouraged to make patients aware that work can be therapeutic and play a crucial role in rehabilitation.
There is also a recognition that someone does not need to be 100% fit to be able to work and that the common causes of sickness absence (mild or moderate mental ill health or musculoskeletal or cardio-respiratory) can be accommodated at work with the right help and support.
The Fit Note has been designed to enable GPs to provide simple, useful advice ‘within the limits of their knowledge and expertise', even then it is up to the employer and the patient to discuss whether or not the changes can be accommodated to facilitate a return to work.
For some employers this is likely to be a daunting prospect, but those with GIP insurance will be able to benefit from the support that insurers can provide in assisting employees back to work.
We ask for notification of absence within six weeks so that we can work with the employer and employee to identify the support needed. The Fit Note gives a focus to returning to work and provides the employer with information on the effects of an employee's illness at an early stage and this can only be helpful.
It will take time for attitudes towards absence to change, and while there may be weaknesses, with the new Fit Note it is a welcome initiative which can be developed and improved in the future.
Tim Bowns, Hannover Life Re (UK)
Only time will tell if the new Fit Notes system helps the Government achieve its objective of reducing the number of people in receipt of incapacity benefit from its current level of 2.61 million.
We can, from our perspective, say that it will be a positive improvement on the current ‘all or nothing' process whereby a doctor simply advises the patient that he or she should refrain from work or not refrain from work.
Allowing the GP the option of advising their patient that they ‘may be fit for work' (subject to certain conditions that the GP is able to specify) will, in many cases encourage workplace improvement.
This development would be very much welcomed as a meaningful dialogue which could be opened up between employee and employer at a much earlier stage than would previously have been the case.
Although we support any initiative that will change the focus to helping people return to work, there will however, be an adjustment period for GPs, employers and employees as they adapt to the demands of the new system.
Our overall view is that the shift in emphasis from justifying absence towards returning to work as soon as is practicable, is something to be encouraged for both individual and group income protection markets. Advisers should target this new regulation as both employers and employees may not yet be aware of its impact.
This would benefit both products from an increased Government focus and an investment towards this philosophical approach, encouraging people to seek help and communicate with each other sooner.
