Some advisers view the SME sector as unprofitable when it comes to group risk. But Canada Life’s sales manager Rus Waygood says technology and better insurer support mean this is now a viable area for growth — particularly with more smaller companies looking to provide comprehensive benefits for staff.
Where are future growth opportunities in the group risk market?
The group risk market has enjoyed strong growth in recent years, with more companies now offering these benefits and extending cover to all staff. This includes SMEs, which we see as a key market for future growth. Historically, many SMEs didn’t offer these benefits, or focused solely on basic group life cover. But more are now looking at wider benefit options in the wake of the pandemic, cost of living crisis and ongoing problems in the NHS, particularly as many of these policies now offer a range of support services designed to support the health and wellbeing of staff.
This is a real opportunity for advisers to grow their business and extend the reach of this group risk market. This applies to employee benefits specialists as well as general IFAs and wealth managers, who may already be offering pension services, insurance, key man cover or even private medical insurance to SMEs or wealthy individuals.
How can technology help with this process?
Some advisers see smaller SMEs as unprofitable due to the time it takes to generate quotes and service what may be a relatively small client. But technology has made this process far more efficient. With Canada Life’s CLASS platform, for example, we have developed a system that is straightforward and simple to use. All requirements about material facts are flagged initially, so advisers know from the outset whether they can generate an automated guaranteed quote on this business, rather than resorting to manual underwriting. From the initial meeting to going on cover can take just 15 minutes in some cases. This is of huge benefit to SMEs too, as these decisions are frequently made by the business owner, not an HR or benefits specialist. A rapid quotation service saves them time, helping them focus on their main priority: running a successful business.
How has the CLASS platform developed in recent years?
CLASS was the first technology platform in the group risk market, launched 20 years ago. It now covers 8,500 clients and 11,500 individual policies. CLASS has always focused on SMEs, with cover available from 2 to 99 lives, but this has recently been extended, up to 250 lives. This enhancement ensures we can offer the benefits of CLASS — which include keener pricing, three-year rate guarantees and enhanced free cover levels — to larger SMEs. It also means expanding smaller businesses are not disadvantaged and can continue cover without having to come off this portal and go onto our standard terms. This is part of our ongoing process of enhancing this portal, to ensure both products and services continue to meet the needs of clients and advisers.
How do the range of support services benefit SMEs?
A decade ago, employees covered on a group life policy would not have had access to any additional benefits, beyond this vital insurance protection. At most, they might have had access to a bereavement support line. Today, a range of services designed to support employee health and wellbeing are available on all group risk product lines. This includes virtual GPs, Employee Assistance Programmes with mental health support and discount reward programmes. These are tangible benefits that can be utilised by all staff, not just the minority who will make a claim under the insurance element of these policies. For SMEs, these services can help build a healthier workforce and tackle absenteeism and presenteeism in the workplace. They also ensure SMEs can offer a comprehensive benefits programme, helping them compete with larger companies when it comes to recruiting and retaining talent.
How can Canada Life support brokers targeting the SME market?
The CLASS portal offers an efficient service for advisers when it comes to quoting and renewing policies. Canada Life also offers a range of marketing resources, which include online videos and downloadable guides, which can be backed up with webinars for clients. This is designed to support advisers who may not be group risk specialists, to ensure their clients fully understand and are making the most of the range of benefits and support services now available under each of these product lines.