Traditionally, it’s probably safe to say that group risk intermediaries were comfortable that the insurer had limited contact with clients. This may have been OK when the products’ value was centred around the claim. After all, once the annual premium was agreed – and communication material provided – there was arguably no need for the insurer to be involved until a claim was made. But, to quote the infamous lyrics of Bob Dylan, The Times They Are A-Changin’.
To win business, we work closely with the intermediary to examine client needs and how our proposition can support them. In today’s world, with wellbeing recognised as a key driver of business success and sustainability, we see the benefits for all parties when we also engage from an early stage with clients to help them extract the value from the multitude of support services we provide. We’re talking about a three-way partnership here. And it’s in everyone’s interests.
Why now? While claims are absolutely critical, these days – particularly when considering group income protection (GIP) – it’s as much about prevention and early intervention.
This is about extending essential everyday support services – be it virtual GPs, virtual physio and mental health experts – to the workforce, including immediate families. It’s also about providing support to enable employees with long-term conditions to work and thrive. And it’s about helping those who are absent long-term, through illness or injury, get back to work as soon as possible, where appropriate; back to the mental wellbeing benefits that good work brings.
All of this has implications not only for wellbeing and absence management, but also the equity and inclusion aspects of diversity, equity and inclusion (DEI), as discussed in our latest Chief Medical Officer report.
Crucially, it’s also about helping the client link all of that to the relevant business outcomes. It’s for that latter reason that we partnered exclusively with Fruitful Insights. Their insights tool brings together all elements of wellbeing – including cultural factors – to give an indication of the costs associated with impaired wellbeing and productivity, so that organisations can create plans to address the areas that need improving, as well as celebrate strengths.
Providers cannot help the client achieve all of this at arm’s length. And intermediary earnings are limited to the placement of the risk, not ongoing consultancy.
This presents a conundrum. Because ongoing support is now an essential, not a nice-to-have. It’s too important, to the future of wellbeing and to the issue of ever-growing absence in the UK, to leave to chance. We can’t just offer education to clients and simply hope for the best. They’ve got enough demands on their time and resources.
Also, as insurers and intermediaries, we must strive to consider how to provide suitable outcomes for both our client and their employees, whilst also considering the focus under Consumer Duty and Value for Money.
To help stake real change, we want to be increasingly delivering (small c) consulting to ensure we correctly meet the client’s full needs. Not only the client (the employer), but the end users (the employees). Insurers are experts in their own propositions, so it makes sense.
In short, it’s in everyone’s interests to now think, talk – and act – in terms of three-way partnerships. Do intermediaries agree? Well some certainly do. Gallagher’s principal, group risk proposition leader Stephen Jarrett says that with the increased cost of employee benefits, particularly through a rapid rise in healthcare costs, clients are quite rightly focusing on where they can access ‘value add’ benefits that support the health and wellbeing of their employees.
He says this focus has shifted towards employee benefits outside of the traditional healthcare arena, to those available through their group life assurance or group income protection provision; and critical illness, to a lesser extent, given the penetration of the market.
Jarrett says that this has inevitably created the need for intermediaries to work in tripartite with providers, who can provide support, education, expertise and additional insight into the use of these provisions.
Given growing costs, access to primary care and a greater awareness of wellbeing – in particular mental health – means this relationship between provider, intermediary and client will continue to become even more critical to help clients meet the needs of their employees.