Good Risk Management focuses on identifying and treating defined risks and should be a continuous and developing process embedded in a company’s HR and wider Benefits strategy.

The last few years have changed many perspectives in Employee-Employer relationships. Employee’s thinking has been changed. It is when people are no longer sold to companies but companies to people.
People who perform better work smarter, more flexibly, and are more engaged! Well-being and comfort are a priority. Employers should address these needs if they want to be employers of choice and, importantly, have satisfied employees.

More and more companies face the challenge of attracting and retaining people and making their company a desired place of work. That is why providing excellent employee benefit programmes, including comprehensive healthcare, and benefits which are meaningful become crucial for most.

The situation is equal for Health & Benefits providers: the new market reality also needs a different and more innovative approach for advisors. Addressing the business and people risks is key, and offering a wider Risk Management Advising offering is the answer. The value of an effective Health & Benefits programme goes beyond the traditional insured benefits, it starts to match employee lifecycles and needs and evolves, now and in the future.

Standard single “insurance” recommendations are no longer relevant, and steps must be taken to support and suggest holistic decisions for the Physical, Financial, Social and Emotional well-being of the employees.
What does it mean in practice to handle a Risk management approach for the Health & Benefits programme? Good Risk Management focuses on identifying and treating defined risks and should be a continuous and developing process embedded in a company’s HR and wider Benefits strategy. Three critical steps in the Risk Management process (and how we apply them) to provide tailored and bespoke Health & Benefits solutions include:

  • Risk identification
  • Risk analysis
  • Risk Control 

Risk identification

Identifying risks involves uncovering threats to the company that may already exist and potential hazards that may exist in the future. Understanding and planning for them in the benefit plan design will ensure employers can manage costs and risk more effectively. Here are a few reflections when designing Health and Benefits plan that Employer can consider:

  • War for talent
  • Retaining people
  • Personalized choices for employees to meet their changing requirements and needs
  • Five generations in the workforce
  • Wellbeing (physical/mental/financial)
  • Absenteeism/presenteeism
  • Mobile Workforce
  • Global mobility & ex-pats
  • Flexible & agile working
  • Employee value proposition
  • Consideration of health and safety hazards
  • Higher employee engagement
  • Accelerated digitalization

Risk analysis 

Here the use of tech and data is essential and beneficial. What benefits different age groups use most is just one key area! Here, data is crucial – using it to assess areas on an emotional and physical level where employee groups need support.

The Employer can then use the data to improve the overall plan design. Choose benefits to positively impact employees’ mental and physical health and manage costs wisely.

Accelerating digitalization will require more comprehensive risk assessments related to pure insurance. Insurance solutions such as D&O and Cyber liability should be part of this wider discussion – peace of mind and security, looking at ways to mitigate the business and people risks!

Risk Control 

Controlling risk involves the development of a comprehensive and adequate programme for Health & Benefits. Following assessment and analysis, the programme should cover all essential areas:

  • Physical
  • Emotional 
  • Financial
  • Social
  • Wellbeing 

Preslava Gencheva

Deputy Group Practice Leader Health & Benefits

Related articles