According to Group Risk Development (GRiD) of whose organisation Vintage Corporate are a member, nearly half a million employees are benefiting from group risk protection and the associated financial peace of mind.

However, all of the uncertainty surrounding Brexit is still deterring some employers from implementing group risk protection products and this needs to change.

Added Value

In a recent blog post, we outlined how the issue of mental health and wellbeing in the workplace is being pushed up the agenda and we’ve been pleased to see the developments taking place in this aspect.

Income protection policies are improving all the time to cover key elements such as early intervention. It is these added value services that are helping more and more people back to work before they even need to make a claim.

In 2018, Group Risk insurers funded more than 75,000 interactions with additional health and support services. The value of protection insurance continues to be proven again and again, and it’s essential for employers to overcome their fears and concerns surrounding Brexit in order to secure adequate protection for their employees.

Risk vs. Reward

For many families, the only benefits they have are those provided through the workplace which makes this an even more precarious situation. Thousands of employees and their families are currently at unnecessary risk should things go wrong, and the solution is so easy to implement by creating a tailored employee benefits package.

Commenting on Group Watch 2019, Swiss Re’s latest annual report analysing the group risk market, Katharine Moxham of GRiD states, “We would urge employers to look at what’s going on alongside Brexit negotiations, where increasingly, Government is looking to employers to help meet its ambitions for a healthy and inclusive workforce, and those employers that utilise the benefits within group risk are in a much better position to meet Government’s expectations around ‘good work’, especially for mental health.”

A Duty of Care

We must also consider the fact the eventual outcome of the Brexit negotiations won’t eradicate the need for group risk protection products. If anything, a potentially stressful and uncertain situation makes the need for protection even more important.

Employers need to fulfil their “duty of care” to all of their employees and put the necessary protection in place. This should be benefits that prioritise their employees’ financial, emotional and physical wellbeing and also support continued smooth company operations to minimise and protect against the impact of workplace absenteeism.

Health conditions such as a cancer diagnosis, emotional breakdown or physical injury will continue to happen regardless of what goes on with Brexit. Employers simply cannot risk dropping the ball and being distracted by the comings and goings in Parliament at the expense of their business.

And contrary to what the media might tell you, the insurers really do pay up. A press release from GRiD released on 1 May shows that the UK Group Risk Industry paid out a new high of £1.68bn in claims in 2018, a £64.5m increase on 2017, and equivalent to £4.61m a day.

Group income protection policies paid out a total of £482.7 million p.a in 2018 and group critical illness policies paid out benefits totalling £82.4 million in the same year. These are no small sums and group risk is transforming the lives of individuals and their families at times when they need it the most.

Increasing Awareness

With mental health one of the leading causes of group insurance claims, there is also the challenge of investing into increasing awareness of how insurance can help.

Many employees do not realise that most group protection policies come with in-built mental health support that covers not only the financial aspect but also elements such as bereavement support and fast-track access to treatment before the problem has a chance to escalate.

Awareness of such a key element is likely to drastically increase take-up of the benefit and support employers in creating their workplace benefit packages. People are essentially looking for added value and the fact that insurance policies are going above and beyond to cater to employees as soon as an issue arises.

With more and more employees working beyond the age of 65, employers also need to protect themselves against the very real possibility of this demographic falling ill.

Research from Canada Life shows that nearly a fifth (17%) of those surveyed will continue working into their later years so that they can continue to receive valuable employee benefits. With this key need identified, employers must respond effectively.

Our team at Vintage Corporate will offer advice and support on building an effective group protection package for your employees and rolling it out effectively. We offer access to the very best market opportunities with our solutions focused on enhancing employee recruitment and retention.

By making your workplace one where employees and their families are truly and demonstrably valued, you can benefit from the very best return on investment.

The post Brexit and the Group Risk Market first appeared on Vintage Corporate Limited.

A case in point is the fact that a quarter of all Group Income Protection claims are now made for mental health issues. According to data by Legal & General, who have confirmed it paid out £292m in group protection claims in 2018, these figures reinforce market-wide research that shows that mental health problems continue to be the most common cause of claims.

Different Types of Cover

One of the most important things to remember is that life cover and critical illness cover don’t cover mental health. Many customers naturally assume that these types of protection would cover such a prevalent health issue, especially as mental health is also one of the most common causes of workplace absenteeism but this is simply not the case.

In contrast, income protection would pay out if you were off work past the deferment period on the policy so it could represent a very valuable form of protection for certain people.

The L&G research shows that mental health accounted for one in four group income protection claims last year, helping hundreds of employees back to work both within and beyond the deferred period with the support of the EIS.

The Value of Value-Added Services

This research also reinforced the importance of value-added services such as early intervention services and rehabilitation including physiotherapy. About two-thirds of claimants who returned to work using L&G’s rehabilitation services in 2018 did so before having to claim on their group income protection policy. So, the value speaks for itself.

As a market leader in protection, L&G services set a benchmark for other insurers with a flexible offering where trained clinicians are used to assess the best treatment for employees for optimum health and productivity results.

This is an accurate reflection of the increasingly intelligent and bespoke nature of protection insurance, and the value that it provides to individuals, employers and their team.

The industry continues to grow and evolve, and this summer’s Protection Review Conference will see an introductory session dedicated to the issue of mental health and underwriting.

A panel of experts will discuss how the industry can improve access to insurance and how can we get more people covered, considering issues such as inclusion and the role of technology in underwriting and claims.

An Open Conversation

Considering insurance beyond the core financial element is a topic that Justin Harper takes on with his guest blog for Protection Review. He looks at the role of the protection industry when it comes to mental health and how the conversation has become more open around a previously taboo topic.

From an industry perspective, this means that more challenging questions can be posed on how to best communicate this life-changing support from the insurer to the client.

Similar communication methods can be used when it comes to employers conveying value to their employees. It is important to communicate how protection cover helps people become more resilient and gain access to much-needed support from the earliest stages of their mental health issues. The value-added services must be emphasised to show that this is a holistic service.

Early Intervention

Early intervention is arguably the most valuable aspect of protection insurance where employers can demonstrate support for colleagues at the earliest stage. This is also important for risk management and business bottom line, catching the illness early to help employees recover and return to work as quickly as possible.

According to L&G’s claims and governance director, nearly 3200 rehabilitation treatment sessions were used through their partners in 2018 which shows that recognition of the value of added services is certainly taking off.

More than a third of all claims submitted to the group risk industry in 2018 saw individuals able to return to work because of early intervention measures with more than half of individuals using available early interventions to help with mental illness. 

In addition, early intervention referrals for mental health also support employers in dealing with complex illnesses without any additional cost to the premiums paid.

Holistic Protection Insurance Income protection provides not only financial relief but also emotional support for individuals who are concerned about taking time off work.

With mental health issues, these worries can make problems far worse. Without early intervention, employers risk allowing issues to fester and the employee taking extended time off to deal with deeper issues.

This all means that we need to speak the right language when it comes to mental health and continue to break down stigma. Employees should feel able to approach their employers should they experience symptoms and have an open conversation without judgement.

For more advice and support on choosing the most effective protection insurance policies for your business, contact Vintage Corporate today on 020 8371 5232 or email info@vintagecorporate.co.uk

The post Mental Health and Income Protection first appeared on Vintage Corporate Limited.