A predicted shift in focus from pensions to healthcare benefits for 2014.
Healthcare and well-being will be the focus of companies and HR departments in 2014, predicts Jelf Employee Benefits. Companies with auto-enrollment (AE) behind them will switch their focus from pensions to other benefits, particularly health and well-being.
Cash plan and iPMI sectors will also see continued growth as companies seek to provide benefits for those who do not receive private medical insurance (PMI). However, Jelf also expects to see fewer excess discounts for PMI schemes were companies also provide cash plans.
Iain Laws, director of UK healthcare at Jelf Employee Benefits, said, “Unsurprisingly, we expect budgets will remain tight and so we foresee a continued growth in the health cash plan sector, with employers making provision for those not provided with health care benefits or health management systems.”
The “broadening of mainstream expat destinations” and the increased demand for employee benefits that Jelf predicted for 2013 looks set to continue into 2014. The “one-size-fits all” health care coverage offered by established providers is now transforming into modular and value products.
” ‘Value’ will be a buzzword with a greater demand for an evidenced return on investment in the healthcare arena – particularly from more experienced and sophisticated employers,” added Laws.
The growing complexity of local legislation and licensing means that territory-specific independent advice will become more relevant to all employers, Jelf said, while Africa will emerge as a serious growth region, particularly in emerging east African nations.
International, travel and relocation premiums are likely to increase in 2014 due to the continuing trend of rising healthcare costs. There is also a growing fraud risk (which some estimate equates to 15% of all claims spend) and so insurers and employers will also be closely monitoring this from a cost-management perspective.
Doug Rice, director of international services said, “We anticipate a series of gradual changes across the wider international benefits market this year but that by the time we reach 2015 the marketplace may have changed significantly from now.”