He said: ‘Employers dipping their toes in the benefits waters for the first time should look to group risk as a vital protection tool for employers and employees alike; it is too often overlooked or not deemed an attractive enough product. However, there are a number of developments in this area that could mean that group risk’s time in the spotlight has finally come.’
Jelf Employee Benefits predictions for group risk in 2015:
1. Political patronage and greater media profileThere is increasing awareness among senior figures in the group income protection (GIP) market that this vital benefit is not readily understood or utilised by the vast majority of employers and their employees. This trend needs to be reversed, and it is predicted that some of the major political parties may respond to recent industry lobbying (such as the recent ABI report) by including a focus on this need in their 2015 manifestos, prior to the General Election in May.
2. The GIP auto-enrolment debateAt the start of 2014, there was only lukewarm industry support for a motion to extend GIP to the UK workforce under a similar version of auto-enrolment legislation. However, 12 months on and the debate seems to be swinging towards at least a limited version of this ideal. So 2015 is likely to see a more intensive continuation of this debate as the industry seeks to find a formula that is fit for purpose, and ensures that the principle benefits and features of GIP remain widely available to all.
3. Better understanding of additional featuresThe industry has spent much time and money seeking to promote the additional features of group risk, which can help employers both manage absence and improve the health and wellbeing of their employees. With an increased employer focus on absence management in 2015, we are likely to see the industry respond with more events and communications highlighting how employers can use these non-core features to better manage such issues.
Further product developments in this space are also expected.