WPA will now offer its ‘group deductible’ pricing model to larger corporates, potentially enabling them to reduce premiums by up to 6 per cent.
This pricing model will now be offered on WPA’s Absolute Health product, available to companies employing between 150 and 1,000 workers. WPA estimates that this will typically result in savings of up to 6 per cent, when compared to a fully insured premium.
WPA has been offering this pricing model on bespoke schemes since 2010 and has more recently introduced it to its Precision Corporate Healthcare product for SME businesses.
With the group deductible pricing model the payment is split into two components: a capped, collective excess (the deductible) and the remaining insured element. WPA says this gives greater control for clients, and helps reduce overall costs at no additional risk.
WPA says this is a sustainable long-term model aligned with efficient use of resources and adaptive to workforce needs.
Further savings can also be made as insurance premium tax is not deployed on the deductible part of the payment. Employers can also expect to see a a lower P11D cost per employee.
WPA says that in lower claiming years, where the deductible element is not fully used, the company benefits with the surplus being returned as a credit.
This group deductible element can be added at inception or renewal, providing flexibility to adapt existing arrangements without disruption.
WPA’s head of large corporate customers Ellis Turley says: “With so many upward cost pressures upon companies, we are challenging the notion of insuring known costs.
“Group deductible could be a game-changer for mid-large corporate claims rated schemes. It is simple, known, established and backed up by WPA’s award winning service. It’s a win-win for customers with not only IPT savings but, if they have a good year, they get money back.
He adds: “In a challenging year, whilst benefiting from a lower IPT they are safe in the knowledge that they are protected under the umbrella of an insurance policy — better still, an added advantage of the premium savings is the knock-on impact to employers’ national insurance liability.
“With the group deductible option selected, large employers can make substantial savings without compromising n the quality of care for their people. It’s about living businesses more control and value from their healthcare spend.”
Claire Knowles Healthcare Lead at Lockton said: “WPA’s Corporate Deductible model was already a good alternative to present to clients as a way of sustainably funding healthcare for their employees. The latest addition of the group deductible to WPA’s Absolute Health product now means that more clients can access an alternative method of funding, whilst no longer needing to take any uninsured risk. This means that we can provide further confidence to our clients that this is a solution that will work for them“.