The future of sluggish market was debated at COVER's roundtable
Poor communication is stifling attempts to jump-start the sluggish group income protection (IP) market, according to guests at the latest COVER Think Tank.
Advisers and providers attending the discussion questioned whether group IP provided businesses with an added value service and agreed that the sector needed clear and definitive lines of communication if it is to move forward.
Discussing the level of understanding in the market, Jamie Winter, senior consultant, healthcare and risk at Watson Wyatt said some headway was being made. "Clients are beginning to understand the value of involving the insurer early enough in order to encourage rehabilitation and return to work," he said.
However, it seems not enough is being done by employers to ensure early intervention can take place. Jamie Barnes, national account manager at Norwich Union Healthcare, stressed that while early claims intervention is in the best interest of both insurers and employers, poor levels of communication is clouding any development.
"It is frustrating that there is a lack of opportunity to actually intervene early. A lot of the problems surrounding this are at company level. They really don't know who is off sick," he said.
Advisers were also placed under the spotlight. Demands were made for more emphasis to be placed on how the benefits of group IP can be applied in practice.
Sigi Kammerer, assistant general manager, client business management at Munich Re, said: "When you consider the knowledge an individual has, the cost of bringing someone else in to replace them is significant."
While it was agreed that more attention must be placed on developing solid partnerships between insurers, intermediaries and employers in order to move the market forward, there were also calls for greater emphasis on developing methods to prevent claims occurring in the first place.
"We should be looking at treating people before they become sick. We should perhaps be looking at trying to do something to help educate employers, who in turn could educate employees in the workplace and try to create a healthier workforce," said Barnes.
• A full report of the debate, sponsored by Norwich Union Healthcare, is free with this issue.
