The situation
The client had worked with the same healthcare provider for many years. While there were no fundamental issues with the arrangement, the insurer’s added-value services had gradually diminished in quality. This decline was reflected in employee feedback gathered through a staff survey.
Employees also expressed a strong interest in the introduction of Dental Insurance as an additional benefit. Furthermore, there had been instances of declined claims relating to pre-existing medical conditions, and the client was keen to provide better support for employees in this area.
The Group Income Protection (GIP) scheme also included a legacy £5,000 deductible on the benefit payable. This structure disproportionately penalised lower earners, creating an inequitable outcome across the workforce.
Our approach
We conducted a comprehensive, programme-wide review of all Employee Benefits, taking a holistic rather than a single-product approach. This broader perspective enabled us to consider all challenges and opportunities collectively, rather than addressing each issue in isolation.
During the review, we identified savings in certain areas that could be strategically leveraged to enhance benefits elsewhere. By modelling fund projections for the Private Medical Insurance (PMI) scheme, we determined that costs could be reduced while still maintaining long-term funding sustainability.
This integrated approach allowed us to rebalance the overall benefits offering, improving value for both the employer and employees.
The result
Our review enabled us to directly address the issues raised by employees and to realign the benefits package more closely with their needs.
- PMI Provider Change: We transitioned to a new PMI provider, replacing declining added-value services with a more comprehensive policy that included cover for pre-existing conditions. This ensured that all employees could access the treatment they needed under the plan.
- Introduction of Dental Insurance: We reinvested a portion of the savings identified during the review to introduce Dental Insurance — a benefit employees had highlighted as highly valued.
- Removal of GIP Deductible: The £5,000 deductible under the Group Income Protection scheme was removed. This enhancement, funded through savings achieved via the holistic review, created a fairer structure that no longer disadvantaged lower earners.
Overall, the outcome was a more equitable, sustainable, and employee-focused benefits programme, delivered without increasing overall cost.