"This is largely driven by a significant increase in those covered through a company paid plan; 250,000 more people over the same time period.

“The company paid market is highly competitive with much lower average premiums and employers increasingly seeking value. During this time, Health Shield have seen greater demand for tailored Cash Plans with employers operating in different sectors, or of different sizes, having very different needs.

"Health Cash Plans are still providing cashback to assist people with the cost of health care such as dental and optical appointments and treatments, but preventative services are also prevalent in an increasing number of plans.

"This further supports the company paid market as employers and HR teams look to meet their duty of care, reduce absenteeism and demonstrate a return on investment.

"In addition, we have also seen a greater focus on employee wellbeing and mental health issues, Health Cash Plans and supplementary services such as screening and employee assistance help to support employers and enable them to engage with staff."

Forward looking

Ron Wheatcroft, technical manager at Swiss Re, predicts that 2018 will present some challenges for the life and health market. 

“Below-inflation or zero wage rises, coupled with above-inflation increases to council tax bills will result in less disposable income for consumers. That said, premiums remain competitive. 

“Although the group risk market provides most income protection insurance, many employers have chosen to do little beyond meeting statutory sick pay requirements. 

“As a priority, the industry needs to continue its work with the government to improve the disregard between private income protection insurance and Universal Credit - one of the barriers to growing new individual policy sales.

"If we can achieve that, there can be no more excuses for the poor level of current sales."

Kevin Carr is managing director of Carr Communications