It does not appear that the added-value services genie will be put back in the bottle anytime soon.
Mental health and financial support services rank highly among added-value services most in demand, as do virtual GP services and securing a GP appointment – which could well become even more difficult as GPs take industrial action in England. As a result many patients now see a virtual GP as a necessity.
But even if a patient sees a doctor, they face challenges with securing a diagnosis and added value services are also rising to this challenge.
And while the potential to extend these added value services are infinite as providers seek to stand out in the market, employers and advisers are increasingly confused over the weight of options they are being presented with.
Employers who can offer a tailored solution could end up emerging as big winners in the war for talent.
Health checks in demand
“Free health checks, 24/7 GP and second medical opinions are the main attractions for added-value services,” Alan Lakey, director at Highclere Financial Services, tells Health & Protection. “Covid brought 24/7 GP to the fore and the appetite is growing in inverse proportion to the failure of the NHS.”
Indeed LV= says it has seen a 56% increase in 24/7 GP services in 2023 compared to 2022 and an over three times increase since 2021.
The most common reason for using the service, it says, is for skin check-ups, colds, flu or ear, nose and throat issues (25%), with a further 10% being used for children’s health reasons.
When contacted by Health & Protection Scottish Widows identified an increase in customers using its wellbeing and support services.
In 2023 it saw a 62% uplift in use of its GP service Clinic in a Pocket and a 184% increase in customers accessing RedArc support services.
Jennifer Gilchrist, protection specialist at Royal London, says: “Virtual GP services is the most used, with appointments for children featuring prominently, but we’ve also seen encouraging increases in the use of our preventative mental health and musculoskeletal support apps too.”
Broad demand
Olly Jones, commercial director at National Friendly, tells Health & Protection demand for its virtual GP service is broad.
“We are seeing demand for the virtual GP access across all age groups because accessing your GP is challenging, irrespective of age – 40% of our usage comes from those 70 years or older.
“Additional services offered by insurers as part of their wider propositions appear ever-growing, but how much further can they go?
“There is an argument that investing in wellbeing apps, health screenings can help identify and manage medical conditions sooner before they become a real problem.
“Some protection products are taken out for 30-40 years or more, so the insurer has a vested interest in the ongoing wellbeing of its customers.
“We provide a rehabilitation benefit so that not only will we protect our members but we aim to support them to get back on their feet quicker.”
Part of the furniture
According to Matthew Reed, MD at Equipsme, virtual GP services have become part of the added-value furniture and are now a hygiene factor added into health benefit products.
“But they’re not all created equal,” Reed says.
“It’s really important customers make sure they know what they’re paying for, aren’t dazzled into getting more than they need – and aren’t paying for fluff.
“Look at the caps and limits on usage, and cover. Not all services, for instance, can offer open referrals onto specialist consultants – so they can only take patients so far.
“That’s something that was really important to us with Equipsme plans, because we know people are increasingly using virtual GPs as a second opinion service when they’re not getting responses from or traction with their NHS GP.
“It’s also important to look at things like usage as an indicator of how much value is actually being added – as well as consumer reviews.
“It’s only actually adding value if it’s being used and providing genuine, practical support.”
The new norm
Jenna Collins, partnership manager at MySanté, describes virtual GPs as the “new norm”.
“Virtual GP services are the new norm, many employers are comfortable in offering this solution to the workforce,” Collins says.
“However, the members aren’t fully aware of just how accessible this virtual GP service is.
“Education and engagement is needed to encourage users to try the service.”
Colleague Luke Nugent, independent insurance consultant at Santé Group, points out: “People will always try their physical GP first but the virtual GPs are very useful now for getting in the moment care and prescriptions etc.
“They obviously don’t work for everyone so insurers that have dedicated routes for musculoskeletal/mental health without the need of a GP referral is a bonus.”
Mental health support
As demand for mental health support continues to spiral, Jo Burton, head of product and proposition, group protection at Canada Life, tells Health & Protection it is not a surprise that mental health support via Canada Life’s WeCare app is another of its most used support services.
“WeCare provides access to practitioners for those who require personalised counselling sessions as well as separate resources for supplementary assistance, or for customers who prefer to go at their own pace,” Burton says.
“Identifying a market need for a strong offering in the mental wellbeing space we also introduced the MyStrength app in 2023, designed to help individuals to make simple everyday changes to improve their mental wellbeing.”
Demand not mirrored across the globe
Though Lucie Mcgrath, health, equity and wellbeing lead at WTW, points out that such popularity of health benefits is not necessarily mirrored across the globe.
“Interestingly, our 2024 Global Benefit Attitudes survey data highlights that the top three priorities for employees when they are considering choosing or remaining with an employer are – pay, job security and flexible work arrangements,”Mcgrath says.
“Health benefits are ranked 10th, and this is consistent across employee demographics and industry sectors.”
Help with cost of living
And Victoria Margesson, propositions manager at Cirencester Friendly, explains even in the UK, while health services are in high demand, increasingly so too is help with the cost of living.
“Over the past few years, shopping discounts and offers have grown in popularity given that many are facing increased pressures on their household income,” Margesson says.
Diagnostics providing more certainty
And Justin Harper, chief marketing officer at Lifesearch, says diagnostics are also in demand.
“Diagnostic services are – whether as an included, or paid for addition – providing a valuable addition to protection policies, giving more certainty and security to both consumers and the insurer,” he says.
“With mental health and wellbeing so prevalent and a major reason for people being off work, we are also seeing significant latent demand for mental health related diagnosis and support services.
“These are often included within the portfolio of services from providers, but often poorly communicated, and not front of mind for consumers when they need it most.
“One area where we are already seeing, and expect more, development is with advanced diagnostic services.
“With hospital appointment waiting times often exceeding the NHS promise of up to six weeks, the fear of not knowing a diagnosis and delays to subsequent treatment are big worries for consumers. For insurers themselves, this can mean more claims and greater severity.”
Reflecting that demand for diagnostics, Bluecrest Wellness head of intermediary and partnerships Jason Morris says its revenue climbed 42% in the last year.
“We attribute that to a shift in the conversations about health from disease management and treatment towards prevention,” Morris added.
Immediate benefit
For Justin Taurog, managing director at VitalityLife, consumers are increasingly expecting much more from insurance.
“This takes a number of forms, including ongoing value, alongside being there at the point of need,” Taurog explains.
“Within our protection products, we have always designed them to provide meaningful and continued value to members.”
Caps on usage
While employers obviously want their employees to use the benefits they are paying for, high usage brings its own set of challenges as Kristian Breeze, director of healthcare at Ascend Healthcare, explains.
“As demand for these additional services rises, insurers face significant capacity challenges,” Breeze says.
“Most providers are investing in digital infrastructure and expanding their networks to meet growing demand.
“Some insurers are considering implementing caps on service usage, like virtual GP appointments, to manage resources effectively.
“However, such measures must be carefully balanced to avoid diminishing customer satisfaction and service quality.”
Customers want simplicity
Though David Williams, head of group risk at Towergate Health & Protection, says increasingly customers want simplicity.
“They want to be able to access a range of services through one entry point such as a single app with single sign-on for each embedded service.
“The digital GP is still one of the most widely used services but the lifestyle services such as relaxation and fitness advice are gaining popularity as more customers realise they exist.”
Customer confusion
Karen Gittings, senior corporate benefits consultant – group risk at Titan Wealth Planning, agrees, adding more customer choice is leading to more confusion.
“Clients are becoming confused with the multiple offerings and overlaps; one client told me that their general insurers are also offering similar services and that they don’t want them all,” she says.
“As employers and employees are becoming more reliant on the added value services, it’s becoming increasingly difficult to make recommendations when carrying out market reviews and we need to be careful not to recommend a switch of insurer without carrying out a full analysis of the additional benefits offered and ensure that the client is advised if a particular service would be lost.”
And it appears that desire for simplicity also extends to the delivery of treatment.
Christine Husbands, commercial director of RedArc, tells Health & Protection: “Our data shows that people really value speaking regularly to the same medical professional with plenty of time.
“The NHS continues to be under a lot of pressure, the opportunity to have an unhurried discussion is very rare and people find themselves speaking to a different person each time and having to repeat their story.
“There is an increasing amount of digital health tools available, but very few have any human interaction and empathy which we know at times of ill health is so important.”
Helping employees stay well
Ultimately, though as UK plc continues to contend with a productivity conundrum, the main benefit for employers is a fit and healthy workforce as James Walker, head of product and proposition at Legal & General Group Protection, points out.
“Employers want to support their people to stay well. And, through our data, we’re able to show that added value services help with that,” Walker says.
“For example, the year-end data for our employee assistance programme, provided by Spectrum.Life, shows that 87% of employees that contacted the EAP, did so, whilst still working, as opposed to during sickness absence (13%).
“In other words, they’re using it proactively to keep well.
“In three in five cases, presenting issues were resolved there and then – in the moment – by a fully qualified and accredited or registered counsellor.
“We’re able to show that this brings benefits to business too.
“From the information gathered on the use of our EAP, we see that it has helped significantly reduce presenteeism, absenteeism and enhance workplace engagement.”