Group protection sales soar by 20% in 2015

Group protection sales soar by 20% in 2015

More than 300 companies bought group income protection for their employees in 2015 – an increase of 20 per cent from 2014.

According to Unum, 300,000 more employees were covered for income protection by the end of 2014 than in 2011, making a total of 2.1m employees covered.

Peter O’Donnell, chief executive of Unum, said there was still room for the market to grow.

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Mr O’Donnell said: “From our own research, it appears that the battle for talent is a catalyst in driving this change. The world of work has changed enormously over the last few years.

“Developments in technology, attitudes and society have influenced significantly how we work and the make-up of the workforce.

“Employees expect more than just a competitive salary from their employer, and a third would consider leaving their job due to poor workplace wellbeing.

“An effective way for companies to demonstrate that they have their employees’ interests front and centre is a comprehensive benefits package.”

Mr O’Donnell said this was particularly true for new companies that are less than five years old and want the best talent to succeed, embrace a fresh approach and take on board new ideas.

He added: “The time is right for brokers to discuss employee benefits with their clients, and work with them to find the most effective package that suits the needs of their staff, both now and for the future.”

Tom Binstead, executive consultant at Gloucester-based Kellands, said auto-enrolment may have also been a cause of the surge in sales.

Mr Binstead said: “One factor which may not have been considered is the fact that auto-enrolment has focused employers’ attention on employee benefits.

“A lot of employers are looking at pensions, so are now considering the wider benefits.”