More than 70 per cent of companies realise the benefits of income protection (IP) but are still are not buying it, according to new research from Norwich Union Healthcare (NUH).
Companies recognise the benefits group IP brings in recruiting and retaining staff and reducing risk. But most say they do not need the product or perceive it to be too expensive.
But, according to NUH, it costs around one per cent of payroll.
The study, involving 200 companies, found that fewer than half sought expert advice on the provision of employee benefits.
The research was compiled as part of the development of NUH’s new group IP product, under which there is no maximum number of lives covered.
Its launch catapults the insurer into the large group IP market and replaces its Company SafeGuard policy, which was sold to companies that had three to 100 employees.
NUH’s product marketing manager, Nick Homer, said: “Because we place a high priority on supporting employers with the rehabilitation of their employees, it can help get valued and skilled staff back to work more quickly.”