Canada Life's Paul Avis asks how the group risk industry can grow with the debate on auto-enrolment for group income protection one likely avenue.
On the face of it the Group Risk industry is doing a great job.
We cover almost 11million UK employees (according to the Swiss Re Group Watch 2014) - over 8½m have group life assurance (GLA) benefits, 2 million have group income protection (GIP) and 380 thousand have group critical illness (GIP) cover.
Should we feel pleased with ourselves? Are we comfortable that most are employed by larger organisations?
Is it OK that there are just over 67 thousand schemes in total when there are about 4.3m entities in UK, with 1.275m organisations of under 50 lives?
The reality is that the Swiss Re Group Watch market report showed that there was actually a reduction in GLA scheme numbers - by 1½% over 2012-2013.
GIP scheme numbers were static and, although it was nice to see a bit of growth in GCI numbers, this is a very small part of the market (with a total of only just over 2½ thousand schemes).
I think this shows that we are not very good at encouraging new customers into this market and really don't have reason to feel pleased!
I would argue that the service elements offered as an integral part of group risk benefits packages are perhaps even more relevant for an SME (small medium enterprise) than a larger employer.
People that have built businesses in this space often know their employees and their families well but need help to provide the sort of support required when they really want it.
If an employee dies the provision of GLA financial benefits are hugely valuable to the survivors but the provision of a bereavement counselling and probate helpline removes the emotional burden on the SME.
GIP provides even greater value! Rehabilitation (at no extra cost) from 2 weeks absence helps depersonalise the management of the absence and enhances adherence to the Equality Act (2010).
The provision of online and telephonic legal support services further supports the SME's legislative compliance and EAPs (employee assistance programmes) help smaller organisations deal with the diverse variety of personal issues that exist in the workplace.
With GCI providing second medical opinion services to provide clinical certainty and nurse-led practical and emotional support at the onset of serious medical conditions (such as cancer, heart attack, stroke), the employer can feel confident that the personal, as well as financial, needs of the employee are well supported.
Whether or not SMEs make an insurance claim, they (and their employees) can use the services offered by insurers to gain immediate, daily value from their premium payment.
So how can we encourage more employers to buy these benefits?
I think that AE (automatic enrolment) pensions will help grow GLA, as advisers are recognising that simple life benefits, proposed during AE discussions and implementation, should prove popular.
I believe that GCI, where 60% is already bought through online and flexible benefits, will continue to "ride the wave" of personal purchases through these vehicles.
And there is GIP - this seems to be the problem, yet for me, it's the priority benefit. "Welfare Reform" is reducing the possibility of relying on state benefits and improving economic conditions is increasing the need for staff attraction and retention.
Now is the time to cross sell GIP alongside GLA and PMI schemes and to encourage new advisers to quote.
This could help growth but, for me, starting the debate on AE for GIP is the only way this market will significantly grow.
My wish is a simple one: that every employer in the UK could access the great rehabilitation and additional services we offer but know that financial support is there when a claim has to be made.
Paul Avis is marketing director at Canada Life group insurance
