Need to know:
- While the focus of group risk benefits was previously on the claim aspect and the monetary payout, now it is more about the crucial support and wellbeing benefits included in many policies.
- Communication of group risk benefits through a little-and-often approach is key to enhancing their value to staff.
- Conversations between HR and line managers and employees affected by serious illness should be empathetic and tailored to their individual needs and circumstances.
Serious illnesses, such as cancer, stroke and heart attacks, can strike without warning, turning life upside down for employees and their families. Employers can play a crucial role in helping them through such difficult times by providing access to group risk benefits that give them the practical support they need when it matters most.
These include group income protection, (GIP), which can be of huge value when sick pay runs out; critical illness insurance, which provides a tax-free lump sum of money to help with recovery from certain illnesses or injuries that meet the policy’s definition; and group life insurance, also known as death-in-service benefit. Within each, there are embedded benefits that offer practical help, not just in dealing with the impact of the illness, but also during an employee’s recovery and eventual return to work.
Employer support
Katharine Moxham, spokesperson for industry body Group Risk in Development (Grid), says: “Key for someone with a critical illness is the vocational rehabilitation support that they receive. Typically, there will be some nurse-led support throughout their illness and beyond, but it can also include help with nutrition, and signposting to various local and national charities and support groups where they can meet and chat with others going through a similar experience. That support is invaluable because serious illness can be very isolating.”
According to the Group watch 2024 report published by Swiss Re, data for 2023 shows that group risk market figures are up by every measure compared with 2022. Group critical illness cover was up 9.6%, with over 900,000 insured under 6,255 policies. With group income protection, 3.26 million people were insured under 20,122 policies, a rise of 6.6% and 3.2% respectively, while group life insurance cover saw 11 million people under 64 insured with 105 policies, up 3.9% and 5.2% respectively.
The increases could be due in part to the pandemic. Covid-19 brought the devastating impact of serious illness into sharp focus for everyone, in turn changing people’s attitudes towards their employer, their work, their health, and how they are looked after.
Since the pandemic there has also been a shift in the way that the industry, and the employers it works with, perceive group income protection or critical illness insurance, as David Williams, head of group risk at Towergate Health and Protection, explains. “Rather than focusing on the claim aspect and the monetary payout, the focus is now on the crucial support and wellbeing benefits included in many policies,” he says. “This has evolved as the NHS delays compel employers and individuals to look for alternative ways to access health and wellbeing services quickly.”
Impact on wellbeing
A critical illness can have far-reaching consequences beyond physical health, with the stress and uncertainty affecting not just an employee’s financial security, but also their mental wellbeing, potentially leading to depression, anxiety, or other mental health concerns.
Conor Hughes, an independent HR consultant, says: “A severe illness can have a financial impact due to rising medical costs, lost wages, and extra spending for domestic help or caregiving. These monetary obligations may increase tension and make it more difficult for an employee to concentrate on their recuperation.”
Group risk benefits can be promoted through various channels, including benefits portals and newsletters. Organising on-site workshops and with insurance providers will bring greater clarity around policy details coverage and claims process for employees.
“Communication is key, and should be little and often,” says Moxham. “One of the simplest yet most effective methods I’ve seen is to issue staff with a credit card size plastic card containing all the relevant contact details, for example, for the employee assistance programme, nurse support, online GP, etc. Instead of having to trawl through the internet to find them, everything is to hand when they need them.”
It also falls to HR and line managers to approach conversations with employees affected by serious illness with empathy and to consider any immediate adjustments they may need, such as flexible-working arrangements to attend appointments.
Sally Hodge, chief people officer, at healthcare insurer The Exeter, says: “When an employee wants to discuss a potential return to work, it’s important to design a plan that supports their integration into the workplace and considers any adjustments they may require following their illness. Throughout any absence, the most important thing is to ensure clear and timely communication between all parties so that everyone feels supported and is working towards helping the employee return to the workplace.”
