Advisers can do more to help their corporate clients to protect their business with low-cost group healthcare schemes, Aon research has suggested.
Data from the Aon Employee Benefits, the UK health and benefits business of Aon plc, found that most employers were not managing employee health risks adequately, and needed more advice on insurance policies.
Stephen Hackett, head of health and risk at Aon Employee Benefits, said: “Serious illness can hit an employer hard, potentially impacting recruitment, retention, productivity, motivation, health programmes and, of course, rising insurance costs.”
Some 75 per cent of businesses had not identified known health risks, nor were they managing them, but 50 per cent of these wanted to get to grips with the impact.
The Aon survey also showed that health benefits have seen an increase in the number of companies offering them on an employee-paid basis. More than 64 per cent of employers believed that their business would value a five-year budget projection for healthcare spend.
Most employers valued the benefits that would help their staff return to work after an illness. When asked whether they would be prepared to offer employees less flexibility or choice in order to maintain sustainable premiums, 54 per cent said they would not. Similarly, 70 per cent would not be prepared to reduce benefits to maintain and reduce premium costs.
Adviser view
Steve Herbert, head of benefit strategy for Kent-based Jelf Employee Benefits, said: “Some employers have failed to nail down related concerns, such as benefit promises, employee engagement and motivation, or insurer terms and conditions.
“This could leave some fairly significant concerns as to who is providing the cover (in a worst case scenario the employer might be self-insuring), and whether the employee is made aware of potential changes to their valuable protection benefits.”
