Sir Charlie Mayfield’s Keep Britain Working Review could not have been clearer and it is a call that has not fallen on deaf ears.
The former John Lewis chairman called on UK plc to adopt an overhauled employer-led shared responsibility approach to employee health at work which he said could cut sickness absence and save up to £18bn a year.
The health and protection sector knows services aimed at preventing health conditions from deteriorating are no longer a nice to have for employees and individuals as early intervention can cut the severity of conditions and typically drive down claims costs.
This may appear counterintuitive, particularly at a group level, as more effective promotion of propositions drives up usage and consequently claim numbers, but the data is becoming clear.
However, where employers can more effectively work with advisers to analyse user data, UK plc can grasp tailoring these services to individuals to meet them where they are and help meet Mayfield’s goal of saving billions of pounds a year.
No longer a nice to have
“Preventative healthcare is no longer a nice to have – it has become a strategic imperative,” Emily Jones, head of workplace wellbeing at Broadstone, tells Health & Protection.
“From virtual GPs and mental health apps to lifestyle coaching and wearable technology, insurers are increasingly embedding value-added services into their offerings to help employees maintain better health over the long term,” Jones says.
And Jones adds this is now having an impact.
“Where preventative services are actively utilised, we’re seeing a stabilisation in claims trends,” Jones continues.
“Conditions are being identified earlier, treatment pathways are more streamlined, and employees are more engaged in managing their own health journeys.”
Significant impact
Kristian Breeze, director of healthcare at Ascend Broking Group, agrees, adding early intervention can cut the severity of conditions as well as prevent claims from arising in the first place.
“The effect on customer health and claims experience is significant,” Breeze explains. “Early intervention reduces the severity of conditions, shortens recovery times, and often prevents claims altogether.
“For example, musculoskeletal issues addressed through physiotherapy programmes can avoid costly surgical procedures later.
“Similarly, timely mental health support can prevent prolonged absence and complex claims.
“Insurers benefit from lower claims costs, but the real advantage lies in improved health outcomes and faster access to care.”
But insurers would be well advised not to rest on their laurels when it comes to product innovation.
Joanna Streames, owner of Velvet Mortgage and Insure Services, tells Health & Protection she would like to see more providers prioritise more personalised prevention.
“We need more support for menopause, stillbirth, fertility, men’s health and neurodiversity; so good outcome-based incentives would be beneficial.
“If insurers make it easy to engage and keep the value obvious, preventative healthcare will keep people healthier, shorten claims and make protection feel like the smartest bill in the budget,” Streames adds.
More claims but shorter duration
Smartest bill or not – increased use of these services does not necessarily result in reduced claims rates, Sally Waterfield, chief marketing officer at National Friendly, warns.
“In fact, for certain types of cover we’re seeing higher claim volumes due to greater health awareness and earlier detection,” Waterfield continues.
“However, what we are expecting is that claims are of lower severity. On income protection portfolios we’re seeing potential for reduced overall claim length, even if this comes alongside slightly higher claim frequency.
“This shift toward earlier, less severe claims ultimately benefits customers through better health outcomes and the sustainability of cover.”
Real engagement remains underdeveloped
But this is not to say that there is not still a job to do in driving up awareness of these services, according to Beth Husted, associate director, health and benefits (GB) at WTW.
“Awareness of preventative healthcare is growing among advisers and employers, but implementation still lags behind,” Husted says.
“While interest is evident, real engagement and tactical deployment of services remain underdeveloped.
“This limited application could be attributed to cost concerns, cultural inertia and a potentially unclear return on investment.”
In order to demystify this return on investment, smarter measurement is required, according to Charlie MacEwan, corporate communications director at WPA.
“We need to move from catching illness early to truly reducing, if not stopping, it happening – using education, behavioural science, and data-driven insights to help individuals and employees manage their health day-to-day,” MacEwan says.
“Prevention must evolve hand-in-hand with technology so we can track outcomes more intelligently and demonstrate real impact.”
There are also indications that providers are increasingly working more closely with employers in order to create these happier workplaces.
Nick Homer, head of market management at Zurich Corporate Risk, says: “Our in-house rehabilitation team also plays an increasing role in supporting our customers with prevention and presenteeism issues.
“We are seeing an increasing demand from HR personnel to speak directly to our rehabilitation consultants about employee mental health and wellbeing concerns.”
Ensuring services are in the right place
A further consideration however, is that these services are in the right place.
David Williams, head of group risk at Towergate Employee Benefits, says: “Advisers do see the benefits for their clients and these services are in demand. It’s simple logic that services aimed at employee wellbeing are improving the health outcomes for employees.
“The important part is to make sure the right services are in place and dovetail with other services to create a cohesive health and wellbeing package rather than relying on siloed benefits.
“For example, a good group income protection policy with strong mental health support will help to reduce mental health claims made under a PMI policy for the same employee group.”
But data capture and insight is also vital, Williams adds.
“If a provider understands more about the reason for claims – or reasons for averted claims through good preventative support – then they are better able to target their services, and the outcomes improve further,” he continues.
“This may be by spotting gaps for further services or for simply fine-tuning existing services to better support the high usage elements.”
Use creating disclosures
It is easier to spot these gaps when exploring whole workforces, but what of individuals?
Nicola Huxley, director at Sphere Mortgages and Life Insurance, points out engagement with these services is low where they are purchased by individuals, and can even have negative consequences.
“Clients tend to be excited at the thought of the value added services (VAS) at the point of sale, we also then remind them post-sale of the benefits they have, but I don’t see much engagement with the services,” Huxley says.
“Notably, the only feedback I had recently was negative – a client used add-on counselling services, because he had the sessions and they were free. He has a history of mental health problems but the preventative session got classed as a recent need for support for his mental health and ended up creating a disclosure, when I particularly felt there shouldn’t be one.”
On a more positive note, Rachel Western, health and risk principal at Aon, points out there are a number of benefits to a several of these value add tools.
“Clients are increasingly challenged by budget and services that can help support health risk management and employee engagement and appreciate some of the additional benefits providers offer,” Western says.
“It’s very difficult to establish what impact they have on claims rates and premiums as many of these services can drive costs up across some benefits but ultimately drive down risk and cost on others but what is key is that they can all assist in managing long term risk profiles.”
Taking greater control
But Setul Mehta, take to market lead at Royal London, reports that customers do value these services.
“More customers are using added value services, which is helping them recover faster and have less severe longer-term health problems,” Mehta explains.
“The evolving trend is that people want greater control over their health, whether that means enhancing their lifestyle, focusing on prevention, or seeking support after a diagnosis.
“Technology and lifestyle changes are being embraced as effective tools to achieve these aims.”
Lucy Carey, partner relationship manager at Medigold Health, agrees, adding that from a preventive and primary care perspective this approach increasingly helps customers take control of their health before conditions escalate.
“Regular health screenings and lifestyle assessments allow early identification of risks such as high blood pressure, diabetes, or cardiovascular issues,” Carey continues.
“By addressing these risks proactively, customers experience better long-term health outcomes, fewer complications and reduced reliance on acute or specialist care.”
Multiple benefits
Ultimately, it is clear that prevention is better than a cure and Dr Subashini M, medical and sustainability director of Aviva UK Health, maintains that Mayfield’s Keep Britain Working Review reflects this philosophy.
She noted the insurer was pleased to see prevention was prioritised in the report, alongside early intervention, and return-to-work strategies.
“While prevention is key, it’s important to consider prevention as part of the healthy work lifecycle and one to be embedded among other proven benefits such as vocational rehabilitation to get the most value out of the full solution suite across different policies and products,“ she says.
“By integrating preventative wellbeing services with treatment and rehabilitation support, we can address a broad spectrum of needs. This ensures employees receive the right support at the right time, often without requiring additional medical evidence, therefore reducing complexity and improving outcomes.
“What were once considered added-value services are now essential components of a holistic benefits strategy. They proactively support employees and promote long-term health, which is vital for sustainable workforce wellbeing.”
And for UK plc the benefits spread further than just cutting costs.
Arun Thiyagarajan, CEO of Vitality Health, says: “Year-after-year we have seen the impact that a preventative approach to health and insurance delivers, in terms of better health outcomes for individuals, building a healthier society and for us as an insurer too.
“Our most physically active members have 27% lower in-hospital healthcare costs, and more generally we have found that those with a healthy BMI face a 26% lower risk of hospitalisation compared to those living with obesity.”
