Why Businesses Should Regularly Review Their Group Insurance Arrangements

For many businesses, group insurance is something that gets implemented once and then rarely reviewed again.

However, in our experience, many employers are surprised to learn that substantial improvements can often be made to both the cost and structure of their existing arrangements — particularly where the policy has been in place for several years without being retendered to market.

At Workforce Group Insurance, we regularly assist businesses with reviewing their employee insurance arrangements on a no-obligation basis.

What Is Group Insurance?

Group insurance is an insurance arrangement provided by an employer for its staff and can include:

• Group Life Insurance

• Total & Permanent Disability (TPD)

• Salary Continuance / Income Protection

• Trauma Insurance

• Employee Benefit Programs

Group insurance is commonly used by:

• Law firms

• Accounting firms

• Professional services businesses

• Corporate employers

• Medical and healthcare groups

• Large SMEs and private businesses

These arrangements can provide valuable protection for employees while also supporting staff retention and workplace benefits.

Why Review Your Existing Policy?

Many businesses assume that once a policy is in place, it will continue to remain competitive. Unfortunately, this is not always the case.

We regularly see situations where:

• policies have not been reviewed for years

• premiums have steadily increased over time

• insurer terms are no longer competitive

• policy structures no longer suit the workforce

• staff are unaware of what cover they actually have

In many cases, businesses have not reviewed their group insurance arrangements for years and significant savings can often be achieved.

Depending on the size of the group, we have seen potential savings run into the tens of thousands of dollars annually while still maintaining — or even improving — the level of cover available to staff.

It’s Not Just About Premium

While cost savings are important, a proper review should also consider:

• policy definitions

• claims experience

• insurer service levels

• continuation options

• underwriting requirements

• automatic acceptance limits

• suitability of cover for employees

A cheaper policy is not always the better policy if the cover or claims experience is compromised.

The Importance of Staff Support

One area often overlooked is the level of service employees receive when they actually need assistance.

At Workforce Group Insurance, we place a strong focus on providing personalised support and advice to both employers and staff throughout the process — whether that involves onboarding, understanding cover, claims support or continuation options when employees leave a business.

When Should a Business Review Group Insurance?

A review may be worthwhile if:

• the policy has not been tendered recently

• premiums have increased significantly

• staff numbers have changed

• there have been mergers or acquisitions

• claims experience has changed

• the business wants to improve employee benefits

• employees are seeking better support or communication

  
  

Final Thoughts

Group insurance should not be viewed as a “set and forget” arrangement.

Regularly reviewing your policy can help ensure your business remains competitive, staff remain appropriately protected and premiums remain commercially reasonable.

If your business has not reviewed its group insurance arrangements in recent years, Workforce Group Insurance would be happy to provide a confidential, no-obligation review.