Whether stand-alone or as part of a broader health cash plan, dental and optical cover deliver significant benefits for employers and employees alike. And, although it’s a low-cost benefit, its perceived value in the workplace makes it a winner with advisers too.
Demand, especially for dental, is strong. “It’s definitely a growth area,” says Sorangi Shah, client director at Towergate Employee Benefits. “Dental is a popular benefit and we’ve seen a lot of interest from employers.”
Market check-up
Figures from LaingBuisson’s Health Cover UK Data Insights report support this. These show the dental cover market has grown steadily since 2007, with sales across the individual and group product breaking the £1bn mark in 2023.
This trend can also be seen in Unum’s dental cover figures. In 2024, it paid out £41.1m in dental claims – a 35 per cent increase from the previous year – and now insures 378,000 people under its flexible dental cover. Clare Lusted, head of product proposition at Unum UK, says employees regard dental cover as a valued part of the benefits package. “In our research 33 per cent of employees said their employer didn’t offer dental insurance, but they would like to use it,” she explains. “Additionally, 17 per cent reported that their dental health had worsened since the start of 2024 – a clear signal that access to care is affecting wellbeing.”
Dental benefits
It’s easy to see why employees and employers value dental cover. A YouGov survey found that difficulties accessing NHS dentistry led to one in 10 of us attempting our own dental work, including DIY extractions and root canal work. And while not everyone is reaching for the pliers, many people struggle to find a dentist. “One in four people don’t have access to an NHS dentist,” says Ann Stewart, director of dental insurance at
Bupa, “It can be a real challenge to get an appointment.”
Failing to get a regular check-up can have serious implications for individuals and employers alike. “A dental examination is a key part of an overall health check,” says Stewart. “A dentist can pick up conditions such as heart disease, diabetes and even Alzheimer’s. Research also shows that employers lose an average of three days a year per employee because of dental pain.”
Dental and optical cover also tick the inclusive health benefit box. Whatever the state of an employee’s teeth and vision, they will be able to use these products. “You don’t need to be ill,” says Paul Shires, commercial director at Health Shield. “Most people should have two dental check-ups a year and, even if you don’t need glasses, an eye examination is recommended every two years.”
Market response
Given the demand, plenty of dental products have been given a full scale and polish. “We’ve increased the dental and optical benefits on our Proactive Plan to meet demand,” says Paul Gambon, chief commercial officer at Medicash. “Dental has always generated the highest volume of claims on cash plans, with optical in second place.”
Bupa has upgraded its benefits too, picking up the tab for most preventative treatment when employees visit one of its practices and bumping up the benefit allowances for those who see
a non-network dentist. “We’re also keen to support employers offering our dental plans,” says Stewart. “This might include attending benefits fairs; providing dentists to come into the workplace; or arranging oral scanners for employees.”
Meanwhile, Unum has embraced technology, adding the digital dentist app, Toothfairy, in May 2024. This gives employees access to a range of benefits including video consultations, a symptom checker and a dentist-led emergency appointment finder.
Dental demographics
For employers – and advisers – looking to introduce a dental benefit, it can be difficult deciding whether an insurance product or a cash plan is the best option. “There’s no one-size-fits-all answer,” says Lusted, who following the launch of Health Plan 360 this year offers dental, optical and cash plans. “Cash plans offer broad, affordable support for everyday health needs while full dental cover provides more comprehensive protection for major treatments and is better suited for workforces with higher dental care demands.”
Younger workforces will often prefer a dental plan over medical insurance. “A younger employee might never need to use the medical insurance, but everyone can use the dental plan whenever they see their dentist,” says Stewart.
This argument becomes even more persuasive when they receive their P11d form and see they’ve had to pay tax on a medical insurance scheme they never use. Dental and optical, plans are also common in the UK subsidiaries of US companies, where a standard benefit on the other side of the Atlantic is replicated over here.
While these workforce demographics play a part, budget is also a factor. Although it offers less dental cover, a basic health cash plan will cost an employer less than half the price of an insurance scheme. However, Shah, says that as it gets tougher to sign up with an NHS dentist, she has seen more requests for comprehensive dental cover. “A basic cash plan might only cover one check-up a year, which can help with budgeting, but many employees would like more help with their dental bills.”
Cost-effective cover
There are several ways to meet this demand for richer cover, without breaking the employer’s budget. “An employer can offer a company-paid cash plan or dental insurance at a low level and allow employees to pay for more cover if they want,” explains Shah. “Pure voluntary can work but it is much harder to get employees to take it out.”
Larger employers could also boost the dental and optical cover included on a cash plan. As an example, at Health Shield, benefits can be tailored on schemes with more than 200 employees or an annual premium of £12,000 plus. “More than 80 per cent of our schemes are tailored,” says Shires. “This helps employers avoid duplication of benefits such as EAPs and GP helplines but it also means they can increase core benefits such as dental and optical if they want.”
With demand for dental cover high, the flexibility offered through cash plans and insurance schemes means there is something to suit all workforces and all budgets.
