Capita launches first two initiatives in its ‘Whole of Workforce’ health and risk proposition

20 October 2014

Capita Employee Benefits has today announced the launch of the first two initiatives which will support employers in providing benefits to their whole workforce for the very first time.

Alistair Dornan, Head of Health Management at Capita Employee Benefits, commented: “With an average of 70% of the workforce without access to company paid benefits, we wanted to focus our attentions on introducing our clients to sustainable, affordable and relevant benefit options for all of their employees.”

“We’ve been working closely with carefully selected providers to develop products to address gaps in the market. We’re pleased therefore to announce today the launch of a unique cancer care group risk product and an exclusive solution for continued medical insurance coverage for ex-employees.”

“These represent the first elements of our ‘Whole of Workforce’ proposition for clients. We believe we can revitalise a somewhat staid and moribund risk market - expect more innovations to follow soon.”

The cancer-only group risk plan has been developed by Capita in collaboration with Friends Life with a fixed sum assured of £25,000 per employee.  

Alistair Dornan, Head of Health Management at Capita Employee Benefits, said: “Today’s launch of a new fixed-benefit, targeted group risk product represents a new beginning for employer-funded insurance. We know that critical illness cover is very relevant for employees. In our own research of 3,000 employees across the UK conducted earlier this year*, critical illness cover was rated as the third most popular employee benefit. However broad-brush group critical illness policies often fail both the affordability and sustainability tests for many employers due to their cost and the uncertainty of future claims management and underwriting.”

Alistair explained further, “By targeting cover at cancer we can maintain the relevance for employees; cancer regularly tops the list of concerns regarding physical wellbeing in surveys carried out in the UK.”

We’re delighted that Friends Life, with its strong reputation and financial security, shared our vision for this product. We have collaborated closely with them throughout the project and are proud to bring this new, innovative product to market. We look forward to helping many employers and their employees address this crucial health issue.”

In addition to this initiative and building upon the foundation of their Whole of Workforce solution, Capita Employee Benefits has introduced Private Medical Insurance (PMI) for Ex Group Scheme Leavers. Working with their partner, AXA PPP, this benefit is free of charge to employers and will require no additional administration by the company.

Dornan, explaining the reasons behind the proposition, said: “Our analysis shows that employees with Private Medical Insurance benefits often lose out whenever they decide to leave their employer, finding that they are paying more for similar levels of cover, cannot find like for like cover and are subject to new underwriting, which will often preclude any pre-existing conditions. For our clients, it gives leverage to their social corporate responsibilities and that extra edge as an employer.”

Giving an overview of both initiatives as part of the Whole of Workforce proposition, Dornan concluded: “Importantly, both the ex-group scheme leavers PMI cover and the cancer-only group insurance plan address affordability and sustainability issues that all employers currently face. Costs are controlled and the insurer can approach claims and underwriting with much greater certainty.

We believe this is one of those rare occasions where we truly deliver a win-win situation – or, really, a win-win-win outcome with benefits for employers, employees and insurers.”

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