Management Consulting

Aon Employee Benefits conducted a risk profiling exercise for Client Y to enhance its employee health strategy and forecast future benefit expenditures. The analysis utilized data from major health-related benefits, including Private Medical Insurance, Income Protection, Group Life Assurance, and the Employee Assistance Programme. The findings revealed that the total spend on these insurances for the last complete accounting year (2013/14) was approximately £8,400,000. Projections indicated that costs for 2015 were expected to rise to £11.7 million, with a potential increase to nearly £15,000,000 by 2017 if no actions were taken to mitigate the risks. The analysis highlighted that while broking had historically helped maintain pricing, sustaining current pricing levels was becoming increasingly challenging. A proposed price increase from the risk insurer for the Income Protection Scheme was noted as unprecedented for a scheme of this size. To address these issues, Aon recommended a three-tiered approach to renewal, which included broking, redesigning benefits, and improving future processes. This comprehensive strategy aimed to ensure the sustainability of the benefits and emphasized the importance of ongoing governance and data management in achieving long-term success.