The Risk in Group Risk

April 2018
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In the increasingly complex world of employee benefits, it’s important that employers take a breath to take stock of their employee benefit offering.

With significant focus on auto-enrolment and workplace pensions over the last few years other valuable benefit offerings may have been slightly overlooked.

Group risk solutions provide valuable cover for employees with life assurance, income protection and critical illness, all valuable elements of an employee’s reward package. However there is a perception that these benefits are simple and easy to manage insurance products... right?     

Many brokers in the market drive their group risk sales and service model by premium cost, believing lower the better. Although price is important when it comes to benefit spend, employers cannot afford to overlook the inherent risk (no pun intended!), enhanced functionality and complications when providing these important benefits.

For example, a poorly structured group risk scheme could easily fall foul of the equality act or the fixed term workers regulations, a badly managed benefit could also negatively impact employees and trigger pension tax liabilities that could have been avoided. Furthermore a simple mistake or oversight in your or your broker’s administration procedures could cause material facts to remain undisclosed, potentially leading to a lapse of cover. Potentially leading to a contractual obligation to honour the benefit provided at the employers own cost.

The group risk market continues to move at a rapid pace with significant product developments, but are employers reviewing all of the benefits in place to identify any overlaps in cover. Are you paying twice for your benefit solutions? Many group risk providers offer enhanced services that you may be unaware off and may be buying elsewhere as a standalone solution. Employee Assistance Programmes (EAPs) are a prime example.

As an independent consultancy business LEBC provides advice across the full spectrum of group risk solutions. Our approach means we are able to support you in achieving your goals no matter how complex.

Our group risk experts partner with you to understand your needs and objectives enabling us to ensure that we deliver an employee benefit package which not only meets with your contractual, moral and legal obligations but also fits with your budget and is valued by your employees.

Our holistic approach identifies any gaps and overlaps in your benefit provision helping you reduce costs and ensure your benefits work together in a truly integrated way, giving you the best possible return on investment.

It pays to work with a quality consultancy business... whatever your needs, LEBC have you covered!

Todd Rowlands
Head of Employee Benefit Consulting

Please remember, no news or research item is a recommendation or advice to buy. LEBC Group Ltd is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of aproduct for your circumstances please contact an adviser.

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