Life Insurance and the Importance of Employee Wellbeing

life insurance employee wellbeing

Life insurance, employee wellbeing and Coronavirus might be the three most discussed topics of the pandemic. In the age of Coronavirus, industries must re-evaluate their entire operation. The insurance industry is also faced with this challenge. However, in the case of insurance, there is also a great opportunity for the industry to change the way insurance is both perceived and consumed.

Employee Wellbeing and the Ensuing Benefit Cut.

The Coronavirus Pandemic has highlighted to so many employers how important their employees’ wellbeing is. Those employers that attribute high importance to the wellbeing of their employees have seen how this can reap valuable rewards in the long run. Currently, many businesses offer a number of benefits designed to incentivise a healthy lifestyle. Benefits of this sort include gym memberships and fitness apps. Reflecting this, Deloitte project that the corporate wellness market will reach in excess of $11 Billion by 2021. But, as a result of the pandemic, employers are looking to enact cost-cutting measures and it’s sure that some of those lifestyle benefits mentioned above will be seen as obvious targets for belt-tightening. What this means is that many employees will be left without those benefits that massively contribute to the health and overall quality of their lifestyles. But this presents an enormous opportunity to life insurance vendors. Provided that insurers tailor their products and methods of operation, life insurance could become a massive part of employee benefit packages and also undergo a massive change from the perspective of consumers.

How Can Vendors of Life Insurance Do This?

Insurers are making a change. Like many other sectors, they’re realising the value of placing the client at the centre of their focus. No longer are service providers like insurers just expected to provide a service. Instead, they are focusing on the needs of the client and tailoring their service provisions to this end.

Life insurers assess a client’s policy costs on a number of simple factors, including age and medical history. But now, insurers are realising that there are other relevant factors that should be included in the assessment of policy costs. For example, day to day lifestyle. With this in mind – along with a client-centric approach – insurers are realising that their business model should emphasise risk prevention as their main aim. And there is a wealth of new data sources available to facilitate this model. These can be as simple as monitoring a fitness tracker (like a Fitbit or Apple Watch). If data collected from sources like this is used to calculate policy costs, not only will insurers have a clearer picture of the health of their client but clients will also be incentivised to live healthier lifestyles.

How Does This Matter To Employers?

Employers are realising the value of having a workforce that is healthy. And, with the inevitable removal of many healthcare benefits like free gym memberships, employers will be looking at effective ways to entice new talent, retain current employees and cultivate a happy and healthy workforce. If insurers can implement the new model wherein life insurance is a constituent of a healthy lifestyle – both physically and financially – then we will find more and more employers providing life insurance to their staff.

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