Group risk provider Unum has published two guides to help intermediaries advise employers on their group risk benefits during the recession.
The first guide provides details of Unum’s provisions and requirements when employers are restructuring and/or making redundancies.
The other guide outlines the arrangements that can be made to accommodate temporary periods of reduced pay and/or hours, as well as sabbaticals.
Examples of situations where the client may need to inform their insurer of changes, so that group risk product premiums can be recalculated, include:
- A variance of 25% of greater in the number of members or benefit insured
- The inclusion of a new subsidiary
- The disposal of a participating company or closure of a part of the employer’s business
- A change in policy design, such as an alteration of benefit level, terminal age or terms of eligibility.
Wojciech Dochan, Unum’s head of commercial marketing, commented: “Tough economic conditions mean that many organisations are having to take tough decisions and alter the structure of their workforce or the company itself. We’re very happy to be flexible in meeting the needs of our customers so that the impact on their group risk benefits is kept to a minimum.
“The most important thing is that the employer understands the effect of the changes they are proposing to their staff. This is particularly true in the case of reduced working hours or pay where they can ensure that employees and their families are not affected in the longer term as a result of what are intended to be short-term measures.”