Jelf predicts group risk sales to grow next year

Jelf Employee Benefits has predicted an upturn in group risk consultations in 2012.

Chris Ford, director of group risk at Jelf Employee Benefits said: "Despite several providers' efforts to raise awareness of the health and financial benefits of Group Risk products by invading prime time Downton Abbey, there remains little employer appetite to invest in new policies.

"However, with Welfare Reforms so prominent on the political and media agenda, when employees realise the full implications of the protection gap they will no doubt turn to their employer."

The Welfare Reform bill putting the onus on employers would force employers to recognise the benefits of having well-structured policies in place, Jelf said, for example in helping provide support for long-term illness or helping absent employees receive additional medical rehabilitation support.

Ford also predicted disproportionate premium increases and the challenges of legislative reform such as the removal of the Default Retirement Age (DRA) and auto-enrolment would be major market influences.

"This creates an opportunity for a more in-depth consultative approach, Employee Benefits Consultancies (EBCs) will be better able to understand the employer demographic, with benefits then positioned to reflect the needs of the changing workforce," said Ford.