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Unum’s UK CEO on the future of IP….
Jack McGarry, Unum’s UK CEO has recently written an article for Corporate Advisor magazine, looking at the changing landscape of Income Protection. The below is an abridged version.
A lot can change in 12 months. After 2011, neither Middle East politics nor the Eurozone will ever be the same. And nor should the Income Protection market. Not one but two insurers promoting IP on prime-time TV changed the game for the industry. But for that new demand to be realised, insurers and advisers alike need to take concerted action in 2012. The time is right to make Income Protection a core part of employee benefit packages, and get the UK’s workforce a back-up plan.
The opportunity is already growing. We’ve doubled the number of employees willing to ask their employer for IP, increased the proportion of employers intending to buy GIP at their next review, and 68% of companies that don’t offer IP currently, are considering introducing it (GRiD Employer Research, October 2011).
Though the current economic environment is tough for everyone, this also creates upsides for advisers. As greater pressure is placed on every penny spent, payroll budgets need to work harder. This provides the ideal chance to provide insightful and imaginative consultancy for their clients, and add value by helping them create benefit packages that work better for their businesses.
Specifically, there’s a strong case for overhauling outdated benefits packages. Beyond rate or feature tweaks, many companies have not truly reviewed their employee benefits for years. They find themselves with packages that are fragmented, and that have no coherent strategy – stuck with sets of legacy benefits that reflect only the needs of yesterday’s workforce.
And needs truly have changed for UK workers over the last 30 years. New graduates are carrying debt they never had. 60% of us are now in families where both partners work, with far more working mothers too. With the reality of the virtual office, demand for home and flexible working has risen. Employees are increasingly working into their 60s and beyond, to secure their retirements.
But above all, people are living longer: diseases like cancer that often killed, now have much higher survival rates. More employees than ever are able to return to work, and play an active role in the labour market; more of us also have to manage through recovery, or live with the impacts of serious illness. We’re now 3 times more likely to be unable to work for 6 months or more due to illness or injury, than to die during our working lives. It’s this health shift that’s made Income Protection a far more needed benefit for all staff.
If you’d like further information on Income Protection and what it might mean for you – read our downloads or ask us a question….
