What’s happening in the employee insurance channel?
What’s happening in the employee insurance channel? | Insurance Business New Zealand
Life & Health
What’s happening in the employee insurance channel?
New manager talks about adviser interest and product’s growing role
Life & Health
By
Terry Gangcuangco
Employee insurance is playing an increasingly bigger role amid underinsurance and inflation in New Zealand, according to Asteron Life employee insurance manager Jon Lloyd (pictured).
In an interview with Insurance Business, Lloyd talked about what’s happening in the employee insurance channel amid existing economic conditions and as employers turn to other benefits in lieu of pay hikes.
“It’s playing an ever-growing role, especially as the current economic climate may cause some individuals to have to re-assess the affordability of their own personal insurance cover,” he said.
“It’s also another way that employers can differentiate themselves among their competitors, both in terms of their commitment to staff wellbeing and retention.”
Lloyd, who acted in a business development capacity before his appointment late last year, added: “Many employers are looking at additional benefits where they can’t afford wage increases at inflation levels.”
The recent internal hire was Asteron Life’s response to the over 150% growth in the insurer’s employee insurance schemes over a period of five years.
Outlook for 2024
“We are seeing many brand-new schemes being implemented and believe this will continue,” Lloyd shared when asked about the possible opportunities in the employee insurance space.
“At the same time, this helps to enable a wider discussion with employees around overall financial and health wellbeing, which can only be good for both the workforce and employers.”
It was previously highlighted that more than 80% of the insurer’s employee insurance schemes in the past year were brand-new schemes or additions to existing ones.
Lloyd said that, along with the workforce conversations, a lot more discussions are being made between companies and financial advisers.
He told Insurance Business: “The independent financial adviser channel is integral to Asteron’s business in both our retail product and employee insurance benefits, so having great relationships with advisers is key to our success.
“Increasingly we’re seeing advisers having wider discussions with business owners around how a wider benefits package could play a key role in their workforce discussions ahead.
“Despite the general economic situation, we’re optimistic about the employee insurance channel. We’re seeing more advisers entering the employee insurance market, bringing new growth to this channel and, more importantly, this growth is, in turn, seeing more New Zealanders insured.”
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