A third of HR decision-makers do not understand the value proposition or know the cost of group life or group income protection, new research has found.
The research found 27 per cent of HR professionals who influence benefit purchases know little about group income protection, while 18 per cent know little about group life assurance.
The research, from a survey of 200 employee benefit decision-makers at companies employing between 150 and 2,000 people found 75 per cent agreed employees care more about employers that they believe care about them, while 70 per cent agreed that employees value financial protection benefits.
Canada Life Group Insurance marketing director Paul Avis says: “There is a wide gap between what employers think group risk should do, what they think it does in reality and the way the modern market actually operates. For example, employers rated a second medical opinion service the most important service available alongside a group income protection product, and a third would expect one to be included. The reality is just over a quarter of group income protection policies benefit from a service such as Best Doctors. Conversely, there is a concern that group income protection may encourage employees to abuse a system provided for their benefit. An assessment carried out by an insurer before paying a claim would be far more in-depth than the employer would be likely to implement themselves without any specialist support, however. Improved education on group risk benefits among HR professionals will ensure organisations do not miss out on the opportunity to show their employees they are valued and cared for.”