Nobody is in doubt of the benefits of rehabilitating insurance claimants. Yes ' it does help insurers cut their costs, but if managed properly, it can also give claimants their life back.
So it is not surprising this 'win-win' situation is being pushed by providers in a big way. However, despite good intentions, one has to wonder whether rehabilitation is being applied in the correct way.
At the latest Cover 'Think Tank', which discussed the role of rehabilitation in the protection market, Andrew Pemberton, of rehab specialists Human Focus Return To Work, told guests about the recent rehabilitation of an income protection claimant. His client had been rehabilitated so successfully he was deemed fit for work. However, as his employer had filled his position he was left jobless and without income because the insurer was no longer interested.
This case perfectly demonstrates one of the central barriers to successfully incorporating rehabilitation into the income protection contract, and one that is often overlooked by insurers. That is, employers ' the primary purchasers of income protection ' do not always want staff back. Unless absent staff can return to their desks quickly, employers would rather pay staff off and find a replacement, as Pemberton's client discovered.
Such reluctance suggests there is more scope to integrate rehabilitation into individual schemes and, without detracting from the cash benefit, use this service as a key sales tool. When the client is also a potential claimant, rehabilitation will be a more attractive perk. Unfortunately however the debate continues to focus on the group market.
Incorporating rehabilitation into the IP contract does seem logical and one could even argue that providers have a social responsibility to make such services available to claimants. But the industry has got a long way to go before it gets the necessary buy-in from customers ' especially in the corporate market, where a push on rehabilitation could actually discourage employers from taking out cover.
To do this advisers will have to present a strong business case ' something that is currently difficult to achieve. To overcome this hurdle insurers need to come together as an industry and start sharing information, something they have been reluctant to do so far.
Until this happens rehabilitation of income protection claimants will continue to be delivered in a fragmented fashion. We may never win the hearts and minds of all corporate buyers, but there is no reason why great strides cannot be made in the individual market.
Rachel Williams, editor
