Research shows that Group Risk protection benefits are not being used fully by employers
Group Risk protection benefits are potentially some of the most highly-valued and cost-effective, but research by Group Risk Development (GRiD) has shown that employers don’t always make the most of them. They highlight five key signs that employers could be missing out.
1. You think the terms are bamboozling
Group Risk policy documents are legal instruments so it comes as no surprise that employers are often bamboozled by some of the terminology. It is essential that employers look at the policy and ensure they understand what it all means, and if they don’t, then to ask the adviser and provider to further develop any terms.
2. Your employees don’t know what you offer them
GRiD’s research shows that only 16% of employers regularly communicate their Group Risk benefits. Employers spend a lot of time choosing and negotiating benefits that will add value to their business and their staff. Employers that communicate them effectively are more likely to achieve that value. When staff know what is being offered and understand the value, they are more likely to appreciate it.
3. You don’t know what’s included
Group Risk policies can offer financial and practical support at a time when your staff need it most – including enabling a quicker return to work. Furthermore, many employers may be paying twice for additional benefits that are already included alongside their Group Risk policies such as an Employee Assistance Programme, a second medical opinion service, online health assessments and fast-track access to counselling and physiotherapy. Employers that know what’s included are in a better position to get value.
4. You never utilise the benefits
It may seem counter-productive, but regular use of what comes along with a Group Risk policy can actually help keep premiums down. GRiD’s research shows that about 50% of employers do not utilise the added-value inherent benefits. It’s important that employers and employees realise these policies are not just there for when they need to make a claim. Many of these are also available to your employees who aren't covered by the group scheme. Regular, effective use of these services makes financial sense.
5. You don’t know what they cost
GRiD’s research shows that the majority of employers overestimate the cost of providing Group Risk benefits, with many thinking they are prohibitively expensive. This is not the case and there is also a lot of flexibility in choosing the benefit structure that will be of most use to you and your staff. If you haven’t reviewed their cost for a while, then it is worth investigating.
Katharine Moxham, spokesperson for Group Risk Development said: “Group Risk protection benefits are some of the most valuable that can be offered to staff and provide many areas of help - from financial through to 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.”