Once known as ‘additional services’ or ‘value-adds’, support services have far exceeded this. They are integral to the insurance offer, not ‘extras’ or optional bolt-ons.
They do all they can to help people in a variety of circumstances, with advice, counselling, certainty or whatever is needed.
This is especially pertinent now, when many people are experiencing reduced income.
In addition, the isolation period is stretching people’s mental health and patience, and with the NHS severely overstretched, there will be a knock-on effect in terms of access to clinical support.
While supporting people from the impact of a financial shock is one thing we do really well as an industry, we need to provide more than just a financial benefit. Keeping these services running has been a key objective of insurers and service providers, as they are more necessary than ever.
the isolation period is stretching people’s mental health and patience, and there will be a knock-on effect in terms of access to clinical supportSupport services are usually free for employees to use — and may be for their families too — and there is a significant amount of support available.
This ranges from early intervention services, designed to help employees back to work, to counselling, digital doctor appointments and access to second medical opinions.
Insurers always work in partnership with suppliers to ensure customer needs are addressed in situations such as the current crisis.
That could mean providing clarity on an employer’s responsibilities and options one day, and counselling a single parent struggling to cope with reduced income and children unable to go to school the next.
There is clearly value in using support services. At a basic level for an employee, these services come at no cost to them versus what they would have to pay if they were buying insurance personally. Support services also offer peace of mind.
The importance of employers promoting these services at this particular time should not be underestimated, as a paternalistic employer will certainly be viewed in a good light after the pandemic.
For those employers who do not wish to use such services, it is important to remember that non-engagement is already factored into pricing.
Employers are not paying for something they are not using.
As is common in group insurance, cost is managed across the whole portfolio. All of the support services are non-contractual parts of the policy and usage and promotion is optional. Which leads to the question: why not promote them?
In the past there has been concern that employers will not want to switch provider if these services are effectively embedded in their processes and culture, which has led to hesitation in some quarters to communicate the full range with clients.
However, in a market of multiple providers with strong propositions, support services have to form part of any recommendation and clients need to be fully informed in order to make the best decision.
When budgets are tight, as they are now for many employers, a policy with no claims and no support service usage may be the first thing an organisation considers cutting back on.
In summary, we have an opportunity to make support services something employers and employees truly understand and want to use, rather than ignore.
There is no premium increase or reduction whether they are used or not, so employers should look to promote them wherever possible. And looking forward, advisers should embrace the existence of support services to protect their clients, grow new revenue streams and enable genuine value to drive client choice.
Paul Avis is strategic propositions director at Canada Life
