[SPONSORED CONTENT]
Advisers and EBCs are now expanding into the SME market, due to increased demand for affordable health and wellbeing solutions, and smarter technology platforms that are reducing the cost of servicing these clients.
Why are more SMEs looking towards group risk solutions?
Employers of all sizes are increasingly looking to provide health and wellbeing support for their workforce, particularly given the ongoing demands on public health services.
This is true of smaller employers as well as larger corporates. However, there are differences in what smaller employers are looking for, when it comes to insurance options. As SMEs have fewer employees they are less likely to make an insurance claim — so the real focus is typically the wider package of support services, and what these can offer to both the employee and employer.
What are the key insurance products and wellbeing services SMEs want for their employees?
Group life has traditionally been seen as the entry-level benefit for smaller firms, due to its relatively low cost. But the reality is that SMEs are increasingly looking at a wide range of group risk products, with strong demand for income protection, and growing interest in critical illness insurance. Zurich has only entered the GCI market relatively recently but we have been delighted by the level of uptake from SMEs.
When it comes to wellbeing support it is clear that employers particularly value virtual GPs and EAPs offering access to counselling and physiotherapy. These are services that SMEs would struggle to put in place themselves, due to cost considerations, and the fact that many providers will impose minimum thresholds on cost or employer size.
Mental health support is particularly valued given it is now a leading cause of workplace absence, and there are often long waits to get treatment on the NHS. Early intervention through EAPs and group risk products can significantly improve outcomes and reduce staff absences.
How can advisers address the budget constraints faced by many SMEs?
In the current environment, which has seen persistent inflation and a rise in employers’ national insurance contributions, businesses of all sizes are cost-conscious. But many employers are also acutely aware of the cost of doing nothing when it comes to staff health and wellbeing, so are looking at the value that group risk products can deliver, in terms of reduced absence, improved productivity and better overall employee wellbeing. Advisers have a key role to play in helping demonstrate the return on investment these policies can offer.
What role has technology played in opening up this sector?
Technology is driving growth in the SME market, making it easier and more cost-effective for advisers to operate in this sector.
Digital platforms and portals are replacing manual processes – which previously have meant it was often uneconomic for advisers to target the SME market. These portals streamline processes for advisers and simplify administration supporting efficient annual revisions and policy reviews for employers. A more efficient system also helps to support competitive pricing across the sector.
Digital tools can also offer improved insights and data for employers, on how these different products and services are being utilised by their employees. This can lead to better engagement and reporting.
How has Zurich developed its group risk proposition?
Zurich has invested significantly in its digital platform, the Zurich Access Portal, which supports the ‘end-to-end’ adviser journey from quoting and onboarding through to policy management and reviews. Over the past four years, the Zurich Access Portal has continued to evolve. It now offers additional products such as group critical illness, while also supporting a wider range of scheme sizes. Previously it covered schemes from 10 to 250 lives, but now covers businesses with between three and 500 employees.
The platform also offers a number of tools designed to streamline adviser workflows, including automation features around company data checks and digital documentation, helping improve efficiency and accuracy.
At Zurich we want to ensure advisers get the same high level of service and product proposition, whether they are serving larger corporates or SMEs.
What opportunities are there for advisers in the SME market?
Despite recent growth there is still significant opportunity in the SME market. Excluding sole traders and one employee businesses, the UK has over a million SMEs but only a relatively small proportion have group risk cover.
Growth in this area is likely to be supported by wider Government policy initiatives such as the recent Keep Britain Working report, which has called for better workplace health provision as a means of reducing the number of people out of work due to ill-health.
Technology is further unlocking opportunity in this market for both EBCs and advisers. As awareness grows and barriers to entry continue to fall, the SME market is set to become an increasingly important area of focus for group risk providers and advisers alike.
