According to the latest employee benefits market insight report from benefits experts, Mercer Marsh Benefits (MMB), the UK employee health and benefits market remains highly dynamic.
The current employee benefits market landscape continues to be influenced by increasing health risks, rising costs linked to sickness absence, tightening regulatory requirements, and tighter budget constraints.
Below is an overview of the latest market trends across several key coverage areas explored in MMB’s report:
1. Private Medical Insurance (PMI)
PMI costs continue to climb, albeit at a slower rate than previously observed earlier in the year. Claims volumes are rising across both age-rated and claims-rated schemes, primarily driven by mental health, cardiovascular, and musculoskeletal issues. The severity of claims is growing in claims-rated schemes, largely due to cancer, cardiovascular, and digestive conditions. Cancer remains the primary cost factor in age-rated schemes.
2. Group Protection
Pricing for Group Protection overall remains mostly stable, with some markets experiencing small increases. Claims volumes however vary with Group Life assurance volumes declining for both small and medium enterprises (SMEs, under 250 employees) and larger corporate schemes (over 250 employees). Group income protection claims volumes remain steady overall. Whereas there was no change to Group Critical Illness claims volumes.
3. Dental
Demand for private dental care continues to rise. To maintain affordability and meet client expectations, private dental providers have been proactive. They have adjusted benefit limits to keep pace with inflation, emphasised preventative care alongside treatments, and adopted new technologies to streamline the claims process for all parties.
4. Cash plans
Corporate cash plans saw the fastest growth among all workplace health and protection products. Providers are continually improving their offerings to better meet employee needs. This sector is well placed to provide products and services that address the varied needs of most employers.
Keen to learn more?
Download the full report to learn more about the UK employee benefits market, including special guest insights on the state of occupational health, workplace pensions, and the UK Employment Rights Bill.
Information contained herein may have been obtained from a range of third party sources and may change in the future. While the information is believed to be reliable, Mercer Marsh Benefits has not sought to verify it independently. As such, Mercer Marsh Benefits makes no representations or warranties as to the accuracy of the information presented and takes no responsibility or liability (including for indirect, consequential or incidental damages), for any error, omission or inaccuracy in the data supplied by any third party .Mercer Marsh Benefits is a trading name used by Mercer Limited who are authorised and regulated by the Financial Conduct Authority (Firm Reference Number 121935). Mercer Limited is registered in England and Wales (Registration Number 984275). Registered Office: 1 Tower Place West, Tower Place, London, EC3R 5BU.
