Income protection providers are working with the Employment Service to help rehabilitate claimants and facilitate a return to work.
By Rachel Williams
Speaking at the GeneralCologne Re Disability Insurance Forum, David Pitcher, technical director at the Health Claims Bureau, said that a number of income protection providers have teamed up with the Government-run Personal Adviser Scheme (PAS).
Presently piloting in six locations, the PAS is a part of the Government's New Deal and helps disabled people to explore their employment opportunities.
Pitcher said: "They will work with the Employment Service's Personal Adviser Scheme with a view to help income protection claimants return to work, either in their own occupation or an alternative occupation.
"This is to the mutual benefit of providers and the Government, both of which save money, and the claimant, who can regain the self-respect employment brings while increasing their disposable income."
The working party, made up of Employment Service representatives, insurers and reassurers, identified a range of appropriate claimants across the pilot areas. However, few claimants took to the challenge because there was little incentive for them to do so.
Pitcher said: "My experience is that few wanted to be referred as they are frequently better off on benefits. They do not want to give up tax-free benefits to be replaced by taxable earnings, have established a lifestyle to accommodate their disability and have concerns about putting their benefits at risk by resuming work."
However, he added: "This was when providers were approaching existing claimants. I hope this improves when providers approach new claimants."
On referred cases, rehabilitation was much less successful with white-collar workers and Pitcher suggested that this should be addressed in the product design.
"It would seem that the personal advisers are not as effective when dealing with professional people. Providers whose portfolio is mainly made up of professional people should bear this in mind.
"Perhaps we need a 'Rolls Royce' product to help professionals and senior managers who have to claim benefit," he said.
While rehabilitation has become the hot topic for providers, Pitcher said that with some exceptions, few had actually done much about it.
He said: "There is a need for a change of mindset by claims managers, actuaries, accountants and senior managers to avoid begrudging the monies spent while rehabilitation is attempted and ensuring that it is compared with the true savings in terms of released reserves.
"Providers are prepared to spend large sums of money investigating suspect claims but do not seem to be prepared to invest money in rehabilitation."
He concluded: "This is not to say we should simply throw money at rehabilitation. We need to select cases in a systematic, objective manner to ensure that we do not take on hopeless cases or invest in individuals who have no intention of resuming work."
