ProtectionJul 12 2016

Advising on group income protection

      pfs-logo
      cisi-logo
      CPD
      Approx.30min
      pfs-logo
      cisi-logo
      CPD
      Approx.30min
      twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
      Search supported by
      pfs-logo
      cisi-logo
      CPD
      Approx.30min
      Advising on group income protection

      There are a raft of these available from insurers and clients are offered so many ‘embedded’ services they would like someone to tell them which they should be using. But what are they?

      Many advisers are superbly placed to consult and lead on EAPs and they offer employers a chance to start assessing what the most preventative strands of sickness absence are

      Second medical opinion services can assist in validating medical treatment and diagnosis, supporting an enhanced earlier return to work likelihood, while providing employees with clinical certainty.

      Amazingly in 2015 employees using the service had a 11 per cent change in diagnosis and a 42 per cent change in treatment (in 2012 it was 17 per cent and 59 per cent) and so the potential to mitigate private medical costs/medical inflation and bad claims experience (important in the Trust or experience rated PMI arena) are massive.

      With increasing medical costs routinely appearing as a Board agenda item (especially in the light of increasing IPT and consequent employee P11d increases) any route to mitigate and reduce these costs should and would be welcomed.

      In addition to case management support, insurers can offer strategic prevention of sickness absence and employer legal support to ensure that the right policies and procedures are in place as well as specific legal advice should the case turn nasty.

      Employee Assistance Programme

      An insurer-embedded Employee Assistance Programme (EAP) charged as part of the premium is commonplace in the GIP market. To save money organisations could cease their standalone EAP where one is provided as part of a GIP policy.

      Advisers need to check all employees gain the benefit of an EAP whether they are insured or not, and that the scheme meets all the employer’s needs. Account management and MI provision need to be assessed, but most embedded EAP providers can do these on a fee or direct contract basis.

      Savings made by ceasing a standalone EAP contract can be used for health and wellbeing strategic programmes. Many advisers are superbly placed to consult and lead on these and they offer employers a chance to start assessing what the most preventative strands of sickness absence are.

      EAPs are a great way of supporting and maintaining the health of employees, strategically helping to prevent absence with a whole host of services that help them to identify and resolve personal concerns that may affect job performance, such as relationship difficulties, financial struggles, alcohol or drug issues, stress or any other personal issues.

      PAGE 2 OF 6