Cut insurance costs by raising health standards
Insurance premiums are largely based on predicted usage and risk but they don't always reflect the actual health of your employees.
A workforce that values wellbeing over one that doesn't prioritise health shouldn't be spending the same for insurance.
We just need to know how to make the case with insurance providers.
Benefits of a prevention first wellness strategy
Wellness programmes can undoubtedly lead to significant health improvements.
You can effectively mitigate common health issues by implementing proactive health and wellness measures.
Not only that, but regular engagement in wellness programmes can lead to a 22% reduction in healthcare costs for active users.
By tending to mental and physical health needs, which are equally critical to the overall wellbeing of a workplace, companies can experience significant improvements in productivity, satisfaction, and retention through wellness alone.
How to negotiate with insurance providers
When negotiating with insurance providers, it's crucial to document the specifics of your wellness programme.
This includes outlining:
- What's on offer
- Participation rates
- Employee incentives
- Reduction of sick days
- Productivity figures
Along with this information, use these bargaining chips to your advantage:
Focus on the mutual benefits: Remind your provider that reduced premiums can lead to a longer-term relationship that prevents you from seeking more cost-effective options.
Include that healthier, mentally resilient employees, will inevitably have fewer claims than workforces that forgo wellness programmes.
Propose a tiered discount structure: To demonstrate that participation in wellness initiatives is part of the larger company culture rather than a fad, propose that your insurance premiums be based on yearly health metrics or participation rates.
According to Wellhub's findings, 70% of workers in the UK engage with their employer's wellbeing benefits, illustrating not only a desire for personal wellbeing but also the fact that sustained usage can move the needle.
Demonstrate how your workforce presents less risk: Insurance companies lead with risk factors. For example, an older workforce may be more costly. Therefore, using data to demonstrate reduced risk is paramount. Use past data to show the impact of your wellness programme on the risk pool.
For example, Wellhub users report higher rates of emotional wellbeing, healthy sleep, and nutrition than non-users. They are also 17% more likely to say they are fit or extremely fit. Use data like this to demonstrate decreased sickness absence, lower healthcare claims, and improved productivity.
Most importantly, review your company's insurance history and highlight any reductions in claims or annual medical costs per employee as further evidence to negotiate lower costs.
A robust wellbeing strategy improves employee health, reduces absenteeism, enhances productivity, and improves insurance premiums. It's the smart way to cover all your bases in business.