This may seem like a success story, but it is important to understand that having group life insurance does not automatically equate to having adequate protection.
Poland is often considered one of the most mature group life insurance markets in Central and Eastern Europe. According to the latest GrECo Employee Benefits Benchmark, 82% of employers offer group life insurance in Poland, which is significantly higher than many other countries in the region.
This may seem like a success story, but it is important to understand that having group life insurance does not automatically equate to having adequate protection.
The protection gap
One of the most common practices is to provide all employees with the same level of coverage. While this a straightforward approach, it fails to take into account the significant differences in employees’ situations.
A young employee living alone does not have the same protection needs as an employee supporting a family or repaying a mortgage.
This creates what is commonly referred to as the protection gap. It means that the amount of protection available may not be sufficient for some employees while providing too much protection for others.
Adequacy and effectiveness over general coverage
As employers evaluate their benefits strategies in terms of employee wellbeing, financial resilience and workforce demographics, it becomes clear that a one-size-fits-all approach is no longer adequate.
This does not mean that employers must spend more. Often, by reviewing the benefits programme, introducing flexibility, offering voluntary top-up options and educating employees, costs may even go down.
Ultimately, the success of a life group insurance programme should not simply be measured by how many employees are covered. It should be measured in how the protection can make a meaningful difference for a person’s loved ones when life takes an unexpected turn. care, risk benefits, pensions and wellbeing.
Ewelina Jaworska-Bień
Head of People Solutions
T +48 504 178 064
