Why proactive planning is key to successful risk and healthcare renewals

A fresh approach to group risk and healthcare could help businesses empower their people, future-proof their organisations and drive results, says Allyson Gayle, Director at Isio.

In recent years a series of significant changes have pushed consideration of a company’s approach to risk benefits (life, GIP, critical illness etc.) and healthcare (PMI, cashplans, health screenings, dental etc.) further up the corporate agenda.   Healthcare cost dynamics, competition for talent and employee expectations have meant that employers are now thinking hard about how best to manage their risk and healthcare provision.

Reflecting a modern workforce

The working landscape continues to shift dramatically, particularly since the pandemic. Employee knowledge and expectations around their reward and benefits package is growing. To adequately serve today’s diverse workforce, wellbeing policies are evolving rapidly with diversity, equity and inclusion as central pillars. Resources are increasingly available in areas that have traditionally been underserved such as neurodiversity and menopause support. It highlights the need for a flexible and scalable approach: one size fits all is categorically no longer fit for purpose.

Keeping ahead of the pack

A proactive approach to risk and healthcare is not just important for today’s workforce, though. Having a comprehensive strategy – fully aligned to your company’s values – with employee-centric policies at its core, can help ensure a business is well-positioned to attract and retain top talent in an increasingly competitive market.

Provision of best-in-class wellbeing and healthcare options is only part of the story though. The risk is that organisations spend considerable budget on the benefits themselves, but employees fail to fully appreciate or understand how to use them. The solution is an employee engagement strategy that’s inclusive and efficient: to help individuals understand the choices available and have the confidence to take advantage of them.

Changing cost dynamics

The pricing philosophy of the risk and healthcare markets has diverged over the last two years. Pricing has reduced in the former, in response to post-pandemic adjustments, but risen sharply in the latter with pressures on the NHS driving up private sector costs.

In the risk market, it has been traditional to wait until a two or three year rate guarantee has expired before the market is tested. However, there is no lock in here and with falling prices it can pay significant dividends to bring forward market testing and most certainly not forgo the opportunity if you are due a rate expiry this year.

Savings generated here can help offset increased healthcare or other employment costs. For example, we recently achieved a six-figure saving for a client simply by strategically testing the market.  

It is therefore more vital than ever to regularly review the market for these benefits to ensure your spend is optimised, especially now with increased employer NI costs.

Perception versus reality

Traditionally, group risk and healthcare benefits may have been a tick box exercise for some businesses: stick with auto risk renewal and move on. The prospect of overhauling a long-established plan may just have felt too overwhelming – or time-consuming – to tackle right at that moment.  But the reality is quite different. Indeed, engaging a consultancy firm can turn this into a really simple process – with clients only required to sign a letter of authority and leaving the specialist team to assess the best possible way forward.

It comes down to taking a holistic view. A consultative approach, that asks the right questions around business and people strategies, benchmarking, governance and really understanding the demographic and health data of the workforce, will ultimately ensure that risk is presented to the market in the best possible light. On top of the demonstrable advantages of healthy and empowered employees, the best possible price is obtained without compromising cover – maximising value for money and ROI too.

Thinking differently

To achieve long-term success, a strategic healthcare benefits plan is not just important, it’s indispensable. Our approach at Isio is to transcend traditional broking by thoroughly understanding our clients’ current and future objectives. Additionally, by leveraging Isio’s Life Master Trust and Synergy Wellbeing solutions, clients can benefit from a streamlined, flexible, cost-effective approach to managing employee benefit insurances.

It’s a win-win: these strategies not only support employees’ physical and mental health but also contribute to a more motivated and productive workforce, driving an enduring employee value proposition and overall business success.

To find out how Isio’s fresh approach to risk cover can benefit your business, contact allyson.gayle@isio.com