The UK employee benefits market is all about change at the moment, but throughout the course of 2018, what changes are expected?
Insurance companies will offer more than just insurance
It is likely that insurance companies will become wellbeing companies where they will shift their focus onto delivering a wider level of support and new options to customers as opposed to their usual way of focusing on premium rates and terms.
A change in demographic will lead to a change in benefits
The workforce is ageing and that is a concern for employers. Many compensation claims from those suffering with the likes of diabetes, obesity and hypertension increased between 2015 and 2018. Therefore, a trend that is likely to continue and so, employers are likely to see an increase in sickness, the duration of sickness periods, insurance costs and medical treatment. As a result of this, employers will have to do their bit to help deal with the issues by attempting to reduce the problem through the promotion of health and wellbeing.Insurance
Benefits no longer linked to salaries
The 40-hour week is changing, in fact, the number of people who work a 40 hour week is changing because part time job opportunities have increased considerably in recent years. Therefore, this can make it difficult for businesses to calculate the costs of their benefits. So, employers will look to make things easier by offering benefits with more flexibility such as lump sum life insurance being offered as opposed to benefits that are linked to salaries.Mobile
Health services will increase
Technology is making it possible for people to use their benefits when needed, regardless of where they are. One example of this is the way in which GP appointments can take place on a mobile device. All suppliers will need to embrace this change by becoming mobile enabled.Insurance
Marketplace could evolve through related heath data changes
The way in which health information is now available has changed through the likes of DNA testing and genetics testing. This is providing a more in-depth knowledge of our health. Therefore, we can check for potential illnesses that might occur in the future, which can prove to be a stumbling block for the insurance industry because policy holders will know what is waiting for them in the future. Therefore, insurers will need to evolve with these changes.
Prevention and support for employees - shift in focus
It is likely that all future employee benefits programmes will focus on wellbeing and providing solutions as opposed to supporting individuals who are ill or dying. The focus will be more on helping those who are healthy to remain healthy instead of paying more attention on those who are ill.
Employee benefits for all
Every employee will have different needs and this is particularly true when you compare the needs of a 60 year old to a 30 year old. Benefits will have to be designed and implemented appropriately in order to meet the needs of each age group.Younger workers may be given additional support financially in order to help them purchase a property or assistance to help them look after and support elderly parents. The way in which these benefits are delivered will be underpinned by technology but it will be focused around delivering value as opposed to considering the most cost-effective benefits.