You don’t have to look far to find reasons why the corporate cash plan sector looks set for continued growth. Starting from a low base of course, the only way is up and the affordability, visibility and usability of the products obviously make them an appealing benefit for any employer to offer, not to mention the thousands of PMI schemes not yet using cashplans to cover excesses.
But cash plans are well placed to benefit from other factors coming over the horizon. Rightly or wrongly, few believe the government will not start chipping at the edges of what the NHS offers for free some time soon. If and when this happens, cash plans would be ideally positioned to help employees meet these new demands on their wallets. Tinkering with the NHS is a political hot potato, and multi-national insurers looking to make a profit from it risk having their brand polluted if they are too aggressive in their marketing. Cash plan providers on the other hand, with their community roots and long heritage of helping ordinary people meet unforeseen expenses, are likely to be perceived more favourably. And they have the ability to service large numbers of people with small payments.
Another area of scope for cash plans in the future is wellbeing. While the idea of the cash plan as a perk is well understood by employers, it seems they are yet to be convinced they can actually boost productivity. But that does not mean with careful marketing, communication and the right research to back it up, cash plans can’t work towards a future where they are a valued wellbeing tool for employers.
John Greenwood, Editor