The employee benefits (EB) market has rapidly become the buzzword for protection providers. The oppo...
The employee benefits (EB) market has rapidly become the buzzword for protection providers. The opportunities for advisers are, they say, boundless. And the need for employers to reduce absence costs and incentivise the workforce has never been greater. So why is it that some group sales are failing to reach the potential everyone keeps saying they deserve?
This month's focus on employee benefits doesn't promise to give any answers, but it does provide the latest analysis on the issues affecting the market.
Employee assistance programmes (EAPs), outlined on page 16, have certainly moved into the EB limelight. It seems that every policy these days has some sort of add-on service, whether it is stress counselling or free legal advice.
With tightening legislation demanding employers take better care of the health of employees, everything points to more growth in this area. The real challenge is whether policyholders see EAPs as just a layer of gloss or a positive step to add value to their scheme.
As we discover on page 18, many employers are still not buying into group income protection (IP). Some employers are positive about the product, seeing it as a solution to fill the gap made by the fallout of final salary pension schemes. But there is still a way to go.
It seems IFAs and insurers need to communicate the benefits of cover more effectively if the market is to move forward. One way to do this could be through worksite marketing. As discussed on page 20, this may be an area more advisers would be wise to look into if they are serious about gaining their share of the EB pie.
Kirstie Redford, editor
