Employer-sponsored life assurance, income protection and critical illness cover are some of the most highly-valued and cost effective benefits a company can offer its employees. However, many employers are not making the most of them, according to research by trade body Group Risk Development (GRiD).
GRiD has highlighted five key signs that employers could be missing out:
1. Employers think the terms are bamboozling
The documents covering Group Risk policies are legal instruments, so it’s not surprising that they contain jargon which employers may find bamboozling. GRiD’s advice to employers is to check any terms they aren’t sure about with their adviser and provider. Both are on hand to help explain any bamboozling terms and ensure the employer gets the most out of their purchase.
2. Employees do not know what’s on offer
Research by GRiD found that just 16% of employers regularly communicate their Group Risk benefits, even though many spend significant amounts of time choosing and negotiating the best benefits for their business and employees.
Employers that communicate said benefits more effectively will ultimately reap the most value from their Group Risk policies. Employees should know what’s on offer and understand the value. If they don’t, more work needs to be done.
3. Employers don’t know what’s included
Employers that know what is included in their Group Risk policies stand to get more value. That’s because many employers end up paying twice for additional benefits that are already included in their Group Risk policies, such as a second medical opinion service; an employee assistance programme; online health assessments; and fast-track access to counselling and physiotherapy.
4. Employers never utilise the benefits
Regularly using what comes along with Group Risk policies can help to keep premiums down, even though it seems counter-productive. However, GRiD says that 50% of employers do not use the added-value inherent benefits.
Both employers and employees should realise that these benefits are not just there for when they need to make a claim. Furthermore, many of the benefits are also available to employees who aren’t covered by the group scheme.
5. Employers don’t know what they cost
The majority of employers overestimate the cost of providing Group Risk benefits and this leaves many believing they are prohibitively expensive. GRiD says that this is not the case, and employers have a lot of flexibility when it comes to choosing a benefit structure that will be of most use to them and their employees. Employers that haven’t reviewed Group Risk policy costs for a while should really start investigating.
GriD spokesperson Katharine Moxham said Group Risk protection benefits provide many areas of help, including financial and practical support for employers, line managers and employees.
“Advisers and insurers are only too happy to help businesses get the most out of these benefits. We would encourage employers to regularly engage with their advisers and providers of these benefits as those employers that are most engaged get the most value,” she said.
These benefits are valuable to both employers and employees but, as the report states, many employers wrongly think they are cost prohibitive. Group Risk is a growing market for Premier Choice and we have specialist consultants available to offer advice to our clients.
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