Traditionally, group risk benefits have been bought on the premise of staff attraction and retention. However, the coronavirus crisis has shifted this, with more emphasis now on retention and support services utilisation. Costing approximately £30,000 to replace an employee, according to Oxford Economics, the business case for retention and employee wellbeing and productivity is stronger than ever.
This is where support services have a crucial role to play and where advisers should focus their efforts. Support services present opportunities to re-engage employees with their benefits, while at the same time the support to employees, and often their families, has never been more needed. Most of these services can be used without being a claimant.
The value and peace of mind, coupled with the diverse range of services on offer – from early intervention services to second medical opinions – makes support services integral to any insurance offering. Not a bolt on or marketing gimmick – the thing that employers and employees value beyond the peace of mind of the financial benefit.
The global pandemic has significantly changed the way healthcare is both offered and accessed. Not only did it force GP surgeries to switch to remote consultations, but data has also shown that many are avoiding using NHS services for non-coronavirus related conditions, with four times as many empty beds reported in April than usual. In addition to this, there’s a large number of people who have been avoiding hospital appointments, or whose treatment has been interrupted due to Covid-19, which will likely lead to increased numbers of heart attacks, cancer diagnoses and strokes next year, as early interventions have been compromised. In this context the financial benefits that group protection provides is very important.
Insurers’ support services are proving vital in easing the burden on our national health system. Nearly half of our policyholders used our WeCare service for GP consultations during lockdown, with 52 per cent of them saying they would have visited a GP if they hadn’t had access to the app, and 4 per cent admitting they’d have gone into A&E. After their telephone consultations, 68 per cent stayed home while only 23 per cent then went on to book an appointment with their GP.
While the pandemic has shocked people into realising the fragility of their own mortality and morbidity, many families have had to deal with the financial implications of loved ones being furloughed or made redundant. The relationship between financial strain and mental health is well documented and so ensuring people are able to talk about these two related things has become essential.
As a result, both critical illness and income protection will become increasingly important benefits, creating space for employers and group protection providers to step up and demonstrate the strength of their support for employees.
Between April and August, nearly 18 per cent of our app users used the support services for mental health support – an indication that some are working longer hours, feeling under more pressure at home, working in small flats with no outdoor space, struggling with childcare, or don’t have an adequate working from home setup. On a positive note, many individuals have used lockdown as an opportunity to reinvent themselves and make significant lifestyle changes. Bike sales went up 60 per cent in April and nearly a third of our policyholders have used our app for either fitness or nutrition programmes.
Looking ahead, we expect online benefits to become more widespread and community events such as mental health workshops for employers and employees to become the new norm, thanks to improvements in communications technology. These will not only allow people the chance to find out what kind of benefits they have already and are on offer but also talk to someone about them. Giving employees the ability to view all of their benefits in one place at any given time and to promote support services will raise the profile of benefits in a way that has been unattainable before.
The importance of protection has been highlighted by the events of this year, but this does not mean that the industry should rest on its laurels. As we move forward, there will be a much greater need for education around Statutory Sick Pay and state benefits with income protection as the main beneficiary of this education. A huge opportunity for the industry.