It has been another busy year for the group risk, health insurance and wellbeing sectors, particularly with renewed focus on productivity issues caused by long-term ill-health in the workplace.
The new Labour government has made this one of its key priorities, so this is likely to impact the sector going forward.
Protection, healthcare and wellbeing products are also becoming a priority for many employers, with greater demand coming from SMEs as well as larger corporates, amid the ongoing crisis in the NHS and the challenge of recruiting and retaining talent. This has helped fuel sales, but increased claims is also driving premiums upwards across most product lines.
Corporate Adviser has been covering the biggest stories across the sector this year — whether it is the rising number of people out of work through ill-health, the record numbers using PMI, mergers and acquisitions across the sector, or the shocking recent news that the chief executive of the largest US health insurer had been murdered, in what appears to be a targeted attack.
But while this background has remained challenging for the sector, 2024 also proved to be a year of innovation and new product launches, with new technology helping deliver improved customer service and better outcomes. This was perhaps seen in the news that cash plan provider Medicash has now detected its 1,000 case of skin cancer, through its partnership with SkinVision, no doubt helping save the lives of many of its members through early detection via this mobile phone app.
In case you missed them here are some of the biggest stories of the year across the protection, health and wellbeing sector.
Further rise in number of people out of work due to ill-health
Economic inactivity due to long-term sickness remained “concerning high” according to the latest ONS labour market data. Figures for the three month from March to May this year show that 2.81 million people are economically inactive due to long-term ill health.
Further rise in number of people out of work due to ill-health
Govt urged to spend billions to tackle ill-health in workplace
The Institute of Public Policy Research predicted that economic inactivity due to sickness could reach 4.3 million by the end of the next parliament unless action is taken. The influential think tank urged the new Labour government to significantly increase spending on this issue to address the problem.
Govt urged to spend billions to tackle ill-health in workplace: IPPR
Corporate funded healthcare driving record admissions
Employers are playing an increasingly important role in the private healthcare market, with seven out of 10 treatments funded through PMI policies in the second quarter of 2024.
Over this period almost 100,000 more patients were funded through PMI policies when compared to self-pay options, according to data from the Private Healthcare Information Network (PHIN). Many of these policies are through company healthcare schemes.
Medicash detects 1,000th skin cancer via SkinVision
Medicash has confirmed its 1,000th clinically validated case of skin cancer among its policyholders since partnering with SkinVision in 2020. It says this important milestone shows the importance of providing digital tools when it comes to early detection and proactive healthcare.
The SkinVision app enables users to monitor moles and skin lesions by submitting photos for risk assessments based on clinical criteria, with dermatologists verifying the results. It aims to help identify potential issues sooner, supporting quicker diagnoses and improved health outcomes by encouraging early intervention.
Shock at murder of UnitedHealthcare CEO
Private medical insurer UnitedHealth Group expressed its shock and sadness at the shooting of its CEO Brian Thompson in New York at the start of December. Thompson was murdered outside the New York Hilton Midtown on Wednesday morning while walking towards the company’s annual investor conference. He was promoted to CEO Of UnitedHealthcare the health benefits business of UnitedHealth Group in April 2021.
https://corporate-adviser.com/shock-at-murder-of-unitedhealth-ceo/
Gen Z mental health crisis fuels work absences
Nearly one in three Generation Z workers, some 1.7 million employees, were signed off for mental health reasons in 2024, as the government pushes to get young people into work.
The research from Unmind, said that the UK’s economic inactivity rate for 16–24-year-olds increased from 39 per cent in 2019 to 41.2 per cent in 2023.
Across all ages, workplace issues accounted for 80 per cent of the 5.3 million employees signed off for mental health in 2024. This is around 16 per ent of the total working population. One of five of those signed off for mental health said they felt punished for missing work, and another 20 per cent said their employer disregarded their requests for accommodations after they returned.Furthermore, 19 per cent of respondents say they are uncomfortable asking for mental health leave. Only 41 per cent of workers are aware that many organisations have Employee Assistance Programmes (EAPs), and Gen Z is the most proactive in using them (63 per cent).
https://corporate-adviser.com/gen-z-mental-health-crisis-fuels-work-absences-research/
Aviva completes acquisition of AIG Life
In April Aviva completed the acquisition of AIG’s protection business for £453m. The deal, announced in September the previous year, sees Aviva purchase AIG Life from Corebridge Financial, a subsidiary of the US-based insurance giant.
The completion of this deal followed clearance by the Competition and Market Authority (CMA), which did not raise objections to the takeover. As a result Aviva gained 1.4m group protection members and 1.3m individual protection customers. The acquisition sees Aviva bolster its footprint in the SME group risk market and the high net worth market — where AIG Life had built a strong presence in the UK.
Eight out of 10 SMEs looking to revamp employee benefits
Almost eight out of 10 (77 per cent) of SMEs are planning to revamp their employee benefits packages in a bid to win and retain talent and address growing problems around employee absence.
This survey, by Howden Employee Benefits, found that many of these SMEs wanted to focus on preventative health and wellbeing solutions as part of this benefits overhaul. This comes at a time when sickness absence rates have reached a 15-year high —with an estimated 104.9 million workdays lost in 2023, due to long-term health conditions.
HR leaders want companies to offer better mental health support
Almost nine out of 10 employers (86 per cent) agree mental health benefits are key when it comes to recruiting new talent according to new research.
A survey, among CEOs, HR professionals and employees found that supporting mental health in the workplace remained a priority, although all three cohorts said it was important for companies to do more on this issue. A total of 82 per cent of HR leaders said their companies could to more to support employee mental health.
This is the fifth annual workforce attitudes towards mental health report conduced by Headspace, which provides a meditation and mindfulness app. The survey marks the start of Mental Health Awareness week.
HR leaders want companies to offer better mental health support
Grid commits to Govt’s business and health reform agenda
Trade body Group Risk Development (Grid) is set to work collaboratively with the new government on business support, health initiatives and Labour’s Statutory Sick Pay reform.
Grid It has underlined its role in providing key support to employees and their families in times of need and is backing several initiatives aimed at supporting businesses and addressing health-related challenges in the UK. Grid plans to address issues such as long-term absenteeism due to illness by utilising their experience in the group risk market to assist employers. Grid chair Colin Fitzgerald says: “Grid sees the election of a new administration as an opportunity to work with government to take forward a positive agenda to support business and UK growth.”
https://corporate-adviser.com/grid-commits-to-govts-business-and-health-reform-agenda/
Workplace Protection and Wellbeing Report 2024: Providers with strongest growth named
It has been another year of very strong growth in the workplace healthcare and protection market, with an increase in the number of employees covered on group risk, PMI and cash plan products.
Corporate Adviser’s Workplace Protection and Wellbeing Report found that cash plans were growing at the fastest rate, up 14.8 per cent on last year report. This was followed by group critical illness (9.1 per cent), group income protection (7.1 per cent), corporate healthcare (5.4 per cent) and group life (5.1 per cent).
This increase comes against a challenging inflationary headwinds which have seen premium increases on many product lines. Within the group risk market, most providers have grown their book of business across all three product lines — the only exceptions being Canada Life, which saw its GIP employees fall by 2.7 per cent and L&G which saw its GCI employees shrink by 0.79 per cent.
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Workplace Protection and Wellbeing Report 2024: Providers with strongest growth named
