What to consider when choosing your international group life provider
Choosing the right employee benefits provider is a significant decision for any business.
The challenge for managers and business owners is ensuring they have made the right choice, especially when it comes time to make a claim.
Intangible nature of insurance
Insurance can often feel intangible since its value is only realized at the end of the insurance period.
This is particularly true for employee benefits.
For example, with a group life policy covering 200 employees, you might expect a single death claim every six to eight years.
During this time, the value of the policy may seem uncertain.
However, the risk of covering potentially large financial burdens can be mitigated by sharing the risk with other companies through insurance.
Importance of reliable claims delivery
In the unfortunate event of needing to make a claim, the insurer must deliver promptly and efficiently.
Unfortunately, some customers experience issues with declined claims or long payout times, which can be frustrating, especially during times of grief for both the employer and the employee’s family.
Declined claims are more common with certain types of insurance but should be rare for life policies.
Declines are usually due to policy exclusions or administrative issues.
Common reasons for when claims are declined
For group life policies, individual member exclusions should be minimal.
However, retail contract restrictions can sometimes leave customers liable if an employee dies under certain circumstances, such as while scuba diving on holiday.
Administrative issues can also lead to declined claims, such as when an employee is missed off the census sent to the insurer.
Honest mistakes happen, and some insurers may take this into account, while others with strict claims philosophies may not.
The flight to quality
Recent customer feedback indicates a trend toward choosing long-standing, well-regulated, and experienced group life and disability companies.
Information on claims acceptance rates, general servicing turnaround times, and financial sustainability should be considered when selecting an insurer.
Making the right choice
While price often dominates purchasing decisions, it is crucial to consider whether the insurance will pay out when needed.
Choosing an insurer that offers comprehensive coverage without unnecessary restrictions and has a clear claims philosophy is essential.
The trade-off between price and quality is vital to understand at the time of purchase, as the importance of this decision may only become evident years later.
The price difference is often small, especially for smaller companies, but the cost of getting it wrong can be substantial if a claim is not paid.
In conclusion, making an informed decision when choosing your group life provider can provide peace of mind and financial security for your business and employees.
Supplied by REBA Associate Member, Zurich
At Zurich, we’re proud to have been providing UK insurance for over 100 years. Whatever you’re looking to support or protect, we’ll do our best to help you.
