The protection gap is widening, with more than two thirds of UK employees not covered by critical illness, income protection or dental insurance as part of their employee benefits package.
The research by Barnett Waddingham that older workers were most likely to miss out on these group risk and health benefits.
Its research showed that only 25 per cent of surveyed employees had income protection, while 72 per cent of employees said they were not even offered the option of having a benefit like critical illness. A similar proportion said they did not have access to dental insurance benefits.
However Barnett Waddingham’s research suggests that many workers would value these benefits if they were offered.
Life cover and PMI were more widely available, but there was still a gap between those who had access to these employee benefits, and those who would like this cover. Barnett Waddingham’s research found 68 per cent of surveyed employees were not given these options, despite 40 per cent stating that they would pay for these benefits if provided.
The disparity is even greater amongst certain demographics, with 58 per cent of men and 71 per cent of women not being offered private medical insurance. Similar inequalities were also identified when it came to employees with a disability. Barnett Waddingham found 62 per cent of these workers were not offered income protection as a paid benefit, although almost two-thirds (61 per cent) said they would want to use it.
According to the CIPD’s 2022 Reward Management Survey, death in service or life assurance was found to be provided by 61 per cent of employers, with private medical insurance offered by 50 per cent – however, this notably varied depending on employee seniority, and the size of organisation.
Barnett Waddinham partner and head of platform and benefits Julia Turney says: “Employers have a crucial role to play in supporting the well-being and financial security of their employees. In the aftermath of the Covid pandemic and ongoing economic uncertainty, it is more important than ever for employers to prioritise the health of their workforce.
“Providing these benefits can help employers attract and retain top talent, as employees now increasingly seek out employers that prioritise their well-being. Taking the necessary steps to ensure employees are protected and supported will also help to instil resilience into a business’ workforce, reducing potential future risks and ensuring longevity in an organisations future business plans.”
