UK employees are ‘woefully under-insured’, with employers contributing to a widening protection gap, according to research from consultancy Barnett Waddingham.
More than two-thirds of employees are not receiving benefits such as critical illness, income protection or dental insurance from their employers. And millions do not receive life assurance or private medical insurance either – with older workers being the most likely to miss out.
The study found that insurance for critical illness was among the least received benefits by employees working in the UK, with 72% not being given the option of this benefit.
The situation was similar for income protection, with 75% of the employees surveyed not receiving it.
This was particularly acute for employees with disabilities, with 62% not being offered income protection. Of those who were not offered the cover as a paid benefit, almost two-thirds (61%) said they would want to have it.
Dental insurance was also found to be a notably under implemented benefit with 72% of employees not receiving it – at a time when costs for private dental care have been increasing and many are unable to access NHS dentist services.
Even popular health benefits, such as private medical insurance and life cover were found to not be available for the majority of respondents, with 68% not being given these options.
This was despite 40% of employees stating that they would pay for these benefits if provided.
The disparity was even greater among certain demographics, with 58% of men and 71% of women not being offered private medical insurance.
According to the the Chartered Institute of Personnel and Development’s (CIPD) 2022 Reward Management Survey, death in service or life assurance was found to be provided by 61% of employers, with private medical insurance offered by 50%.
But this varied depending on employee seniority, and the size of organisation.
‘Crucial role’
Julia Turney, partner and head of platform and benefits, Barnett Waddingham, said: “Employers have a crucial role to play in supporting the wellbeing and financial security of their employees.
“In the aftermath of the Covid-19 pandemic and ongoing economic uncertainty, it is more important than ever for employers to prioritise the health of their workforce. Providing these benefits can help employers attract and retain top talent, as employees now increasingly seek out employers that prioritise their wellbeing.
“Taking the necessary steps to ensure employees are protected and supported will also help to instil resilience into a business’ workforce, reducing potential future risks and ensuring longevity in an organisations future business plans.”