Health and protection insurers produce the equivalent of £6.1bn a year in benefits by reducing the number of days employees take as sick leave, research from the Association of British Insurers has revealed.
The report, Futureproofing Workplace Health, which was carried out by WPI Economics, showed that in 2021 services provided by insurers prevented 14mn sick days and helped 12,500 full-time workers to stay in work.
With fewer people off work, businesses were £2.6mn better off, and the wider economy saved £2bn.
ABI director of policy, health and protection, Yvonne Braun, said these “striking” figures show that health and protection insurance is “vital” for the health of UK plc.
“Our sector provides services which have a material positive impact on people’s health and financial resilience, while also supporting businesses and the productivity of the UK economy,” she said.
“By helping employers to invest in the health and wellbeing of their employees, insurers also complement the vital work of the NHS.”
The research provided a breakdown of the produced benefits, across businesses (£2.6bn), the wider economy (£2bn), and the Exchequer (£1.5bn) in 2021.
It explained that, by keeping people healthy and in work, the Exchequer saved £1.5bn as people continued to pay taxes and did not claim social security benefits.
Additionally, it estimated savings to the NHS of £1bn, which could be reinvested to improve public health and social care services.
Reforms
The report also outlined a number of recommendations that the government should take forward to improve workplace health.
This includes reforms to statutory sick pay, changes to the interaction between social security benefits and insurance, and making a move towards mandating firms to disclose information on how well they support the health and wellbeing of their staff.
The ABI suggested these measures would lead to 165,000 more people in work and 28mn days of sickness absence avoided by the fifth year.
WPI Economics head of policy, Joe Ahern, said: “With the health of the nation at the top of the agenda in recent years, it’s more important than ever that we look at all options for healthcare, including the role of workplace health solutions.
“Our research has shown that health and protection insurers can provide significant support to the health and the wealth of the nation.”
tom.dunstan@ft.com
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