Group Risk Benefits

By James Bolton of Atkinson Bolton Consulting Ltd

Group Risk Benefits is your review overdue? –

I recently had the pleasure of advising a large biotech company that by reviewing their group risk package I was able to save the company £29,000 per annum in premiums and improve the benefits package into the bargain. This may be an extreme case but it represented a fall in around 35% of the total premium.

Many companies offer group risk benefits such as life cover and income protection to their employees. The insurer usually reviews the costs of these schemes every two years when their premium rates are changed. Unless full market reviews are undertaken on, at least, a biennial basis a company can often unknowingly be paying too much.

It can also be important to take into account other savings which can be made, for instance premium savings of around 5% can be made if the company has a non smoking policy or more than one benefit with the same insurer.

Group life insurance can be useful for smaller companies. Often life cover may be provided for a few senior executives under executive pensions. I have come across situations where companies with a staff of around 20 employees have been able to re-direct the high premium cost of these policies into an approved group life plan. This has resulted in all staff covered for life assurance rather than cover being restricted to a few senior executives and at no extra cost.

Atkinson Bolton Consulting are Corporate Benefit Consultants and Independent Financial Advisors and are regulated by the Personal Investment Authority. They can be contacted on 0845 458 1223 or email james@atkinsonbolton.co.uk.