Group risk insurance is one of the clearest ways employers show commitment to their employees. Yet in many organisations, it is also one of the most static parts of the benefits package.
Policies are often put in place and left unchanged for several years, even though workforce and business priorities shift.
Over time, this means cover can quietly fall out of step with what employees need, which is why regular, structured reviews matter.
Think about your Wi-Fi contract. When you first signed up, the data appeared sufficient to meet your needs. Then your habits changed, streaming increased, usage grew, and suddenly what once worked no longer does. You noticed the gap and adjusted accordingly, yet with group risk benefits, this is rarely the case.
Once the risk benefit package has been established it is seldom revisited: neither reviewed by the employer nor reassessed by the employees who rely on it, until, inevitably, something happens, and the gaps become painfully obvious.
At its core, group risk covers are built on a promise that employees and their families will receive financial support during a life event calamity.
That promise, however, is meaningful only to the extent that the cover remains relevant, as what worked five years ago may fall materially short today.
This is not a failure of design, but a natural consequence of an ever-evolving world. Salaries increase, families grow, and the cost-of-living rises. A funeral which cost N$15 000 a few years ago could now easily cost twice that. As workplaces evolve, so do the risks employees face, and risk benefits need to keep pace.
A meaningful group risk benefit review usually considers four things. First, adequacy. Is the level of cover still sufficient in real terms? If salaries have increased but benefits have not kept up, the value has been eroded. Funeral cover that no longer reflects actual current costs may leave a grieving family significantly out of pocket at the worst possible moment.
Second, relevance. Does the type of cover still suit the workforce? For example, lump-sum benefits like critical illness cover are important, but ongoing income support during recovery may be just as valuable. The mix of benefits should reflect what employees are most likely to need.
Third, competitiveness. In a market where employees have choices, the benefits offered by employers matter. Employees talk and compare notes. Falling behind as an organisation can affect attraction of top talent, morale of current staff and retention of good employees more than employers may realise.
Finally, efficiency. Even well-designed cover can fall short if claims processes are slow or difficult to navigate. The real test of any policy is how it performs when people need it most, highlighting the importance of choosing a provider that delivers in practice, not just on paper.
Reviewing group risk benefits takes time and can involve tough fee discussions, but the cost of inaction may be very high. When cover falls short, the impact is felt most by employees and their families at the worst possible time.
A review is not just administrative; it is a reaffirmation of the organisation’s commitment to the well-being and security of its people.
Employees should chat to their human resources team if they are unsure about their group risk benefits – it is worth taking the time to understand them. Employers that have not reviewed their group risk benefits within the past two years may want to revisit these. Contact your adviser or consultant for more guidance on how to do this.
– Laimi Joseph is the client relationship manager for group assurance products and corporate segment at Old Mutual Namibia.
The post Why Regular Reviews of Employee Group Risk Benefits Matter appeared first on The Namibian.
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