The following case studies are examples only and should not be considered as financial advice. You should always seek advice relevant to your own specific needs and circumstances before making any financial decisions.
1. Corporate Policy
Industry sector: financial services. Number of employees: 175, employed over 3 sites in the UK.
Original policy, first review April 2014:
Private Medical Insurance with a renewal premium offered at £116,930 against previous year £83,227.
Occupational Health on an ad-hock basis with Capita – annual spend circa £10k.
Total annual premium of £126,930
We performed an in-depth analysis of what the client expected from their healthcare insurance. We discussed their medical history and performed a full market review. Most importantly, we negotiated a premium of £96,695 for their private medical insurance.
The only change made was an increase of excess to £200 from £50 per person per policy year.
We then introduced a cash plan for all staff. This enables the staff to claim the excess from their health insurance against the cash plan. Employees gain additional benefits such as dental, optical, therapies and health and wellbeing benefits, for a total annual premium of £14,297.
Lastly, we sourced a revolutionary occupational health solution which covered all staff for all charges relating to their occupational health requirements. This included private GP and nursing, counselling (telephone and face-to-face) with unlimited cover for all staff at an annual premium of £4,231.68.
Total annual premium for the renewal. £115,223.68 including all 3 options. Private medical insurance, cash plan and occupational health. This is less than the original renewal offer for the private medical insurance alone.
Renewal of this policy 2015:
Premium increase for the health insurance is only 9.77% . This is less than the rate of medical inflation.
NO increase in premium for the cash plan.
Zero increase in premium for the occupational health policy and a 2-year fixed rate negotiated.
Renewal of this policy in 2016:
The group has performed well again this year. The renewal was originally offered at a 6.92% discount against the current premium paid. After a full market review and positive market feed-back, we negotiated a further discount for the group. Our negotiation has given them a saving of 12.45 % against the current premiums paid.
NO increase on the cash plan premium
ZERO increase on the occupational health policy as a 2-year fixed rate negotiated last year.
2. Case Studies for SME (small business)
Industry sector: global investment research analysts. Number of employees: 15, based in London.
We were appointed to this client in July 2015 and performed a review for the first time in August 2015.
Premium paid in 2014: £41,775.07
Renewal premium offered in 2015: £47,307.24
This policy was covered on a Medical History Disregarded underwriting. It offers full refund cover, Extended London hospitals and £0 excess.
Following a meeting with the client, it was evident they did not realise that changing the hospital list would provide a massive saving. The group administrator spoke to her team and discovered the hospitals on the Extended list had not been used.
By implementing this very simple change, the group paid a premium of £24,054.62 at renewal which saved them over £20,000 without losing any benefits for their members.
These two simple case studies make it easy to understand the importance of working with a specialist insurance broker.