The opportunities and value available to companies through group risk products are not widely recognised by the HR professionals who influence benefit purchases, research conducted for Canada Life Group Insurance suggests. Over a quarter (27%) of those surveyed know little about Group Income Protection, while almost a fifth (18%) know little about the typically mopre straightforward Group Life Assurance. For each product, almost a third (32%) also stated they were unsure of the cost or value of the propositions to their organisation.
Three-quarters (75%) of all employers agreed employees care more about employers that they believe care about them, while 70% agreed that employees value financial protection benefits. Group Risk benefits are perfectly positioned to meet these needs but, with the products poorly understood, employers are not able to take full advantage of this. Gaining an understanding of Group Risk could help companies achieve the staff loyalty they desire, by making their employees feel well looked after and providing benefits that they value.
Companies that do offer Group Life Assurance (GLA) or Group Income Protection (GIP) to their employees clearly have these thoughts in mind. The two most common reasons for providing these benefits are a paternalistic culture at the company (73% GLA and 69% GIP), and it also helps with recruitment and retention of staff (65% and 56% respectively).
Growing awareness of Group Risk in the business community is a goal which could benefit both employers, and employees. The products and service are more sophisticated than ever before, and taking into consideration the additional services many insurance providers offer, the value this package provides makes for an affordable and powerful addition to any employers’ benefits package. While growth in the market is an aim of most insurance providers, ultimately it is employees, the people that drive every business, who gain most from increased access to these wide-ranging benefits, many of which can be used in day-to-day life quite apart from the financial benefits.
Paul Avis, Marketing Director at Canada Life Group Insurance, comments:
“Educating employers about the value of Group Risk and increasing awareness of the cost and value of what is available is a primary objective of Canada Life Group Insurance. We recognise this is a two-way street, and insurers must make every effort to be transparent and make information about our products and services easy to access and understand. This is why we took the decision to make our extensive library of webcasts available on YouTube, and are currently investigating ways to improve our approach to employer and employee communications.
“Group Risk in the 21st century is a collaborative benefit which protects employees, employers and insurers. However, there is a wide gap between what employers think Group Risk should do, what they think it does in reality and the way the modern market actually operates. For example, employers rated a second medical opinion service the most important service available alongside a Group Income Protection product, and a third would expect one to be included. The reality is just over a quarter of Group Income Protection policies benefit from a service such as Best Doctors. Conversely, there is a concern that Group Income Protection may encourage employees to abuse a system provided for their benefit. An assessment carried out by an insurer before paying a claim would be far more in-depth than the employer would be likely to implement themselves without any specialist support, however. Improved education on Group Risk benefits among HR professionals will ensure organisations do not miss out on the opportunity to show their employees they are valued and cared for.”
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