Employers are failing to get the most of their group risk policies by not effectively communicating them to members of staff, new research from Group Risk Development (GRiD) shows.
Of the 501 UK businesses with between five and 1,000 employees which took part in the study, 16 per cent of business bosses said they make a point of issuing regular communications on their employer-sponsored life assurance, income protection and critical illness cover.
In addition, 38 per cent of the sample stated they outline group benefits on their intranet or in their staff handbook, while 30 per cent claimed these are outlined in their employee benefit statements.
Furthermore, one in five bosses interviewed viewed the suite of protection productions as a major selling point at interviews.
Katharine Moxham, spokeswoman for GRiD, said: “When staff need practical support – if diagnosed with a critical illness, or are unable to work through ill-health or injury, for example – then these benefits come into their own. It is imperative that employers understand how best to use group risk benefits and the supporting services that come along with them, so they can let their staff know how to access them when needed.
She added: “Our research also shows that a third of employers use group risk benefits to attract and retain key personnel, so effective communication is vital in achieving that goal.”
Adviser view:
William Annison, employee benefits consultant at Derbyshire-based HWWA Consulting, said: “I am encouraging my clients to do more in terms of communicating group risk benefits to their clients. I constantly implore them to make sure that their life insurance nominations in particular are up to date.
”Bosses assume that their staff know and understand the benefits that are available to them, but they should really communicate these benefits fairly regularly.”
