Automotive tool manufacturer Snap-On has switched private medical insurance (PMI) providers to improve efficiency, and has used the savings to launch an employee assistance programme (EAP) for its 600 staff.
Snap-On’s PMI benefit was previously provided by Bupa, but after a market review by consultancy Jelf Employee Benefits, it found its loss ratio was low and it would be better off with a claims-related contract. Loss ratio is calculated by comparing the amount paid in premiums with the amount paid out in claims.
As a result, the firm moved to PruHealth’s Vitality product. Through the scheme, staff can obtain discounted gym membership and earn points for activities such as buying fresh produce at Sainsbury’s or walking a certain number of steps each day.
Paul Clarke, director of HR at Snap-On, said the company was now benefiting from better medical benefits, continuous underwriting terms, and significantly lower premiums.
The savings made enabled Snap-On to introduce an EAP. “We have achieved significant savings by switching, and employees have been more than cared for in the transition,” said Clarke.
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