By Rachel Williams. . WPA is launching a corporate private medical insurance scheme tailored to me...
By Rachel Williams.
.
WPA is launching a corporate private medical insurance scheme tailored to meet the needs of the small employer, the fastest growing sector in the PMI market.
The plan, called Enterprise, is available to all businesses with three or more employees and allows for the design of a plan that will cater for each employee's individual needs.
David Ashdown, communications director at WPA, said: "Small companies have historically only had the option of blanket cover for all employees, regardless of their individual needs, and it is understandable for them to be reluctant to spend money on this kind of policy, parts of which are irrelevant to the needs of some employees. For example, only a few employees will be travelling on a frequent basis and so will not all need global cover.
Under the scheme, a minimum of three employees are required to take out standard cover, which includes inpatient and a small amount of outpatient cover. Additional options can then be incorporated into the plan, which includes more comprehensive outpatient cover and a therapy option including physiotherapy and osteopathy.
The dental option provides cover for dental injuries and emergencies as well as some routine cover, while the worldwide cover provides insurance for employees who travel frequently overseas with full cover for family assistance, repatriation and evacuation.
A cash plan option is available as an add-on to standard cover or as a standalone option and it includes optical expenses, GP fees, NHS prescriptions, maternity cash, A&E attendance and a recovery bonus.
Ashdown said that this was an attractive option for companies which want to put some cover in place but could not stretch to PMI. He added: "The workforce always like the idea of a cash plan as they recognise straightaway that it is a benefit they will use.
As an incentive, new groups will receive a 25% discount in their first year, decreasing by 5% annually.
"We are looking to expand the market and there are many companies that want insurance but cannot afford it. This will make PMI much more affordable for them as they will not be paying standard rates for five years.
Companies transferring from an another provider will be taken on under terms that will be no worse than under their existing plan. IFAs selling Enterprise before the end of the year will receive initial commission of 15% which reverts to 10% in 2000. The renewal commission rate is 10.
The launch follows independent research showing that over a third of small companies have had at least one member of staff off work for more than two weeks in the last two years. It also revealed that PMI can be one of the key factors that motivates employees to move to a larger company with more employee benefits.
