The recent rapid rises in premiums for these two types of cover are likely to lead to company-sponsored schemes taking a larger share of the market in coming years, it adds.
The main advantage is that while group schemes cost employers nothing, they allow employees access to much more competitive rates than would otherwise be available to them.
John Ashbolt, managing director of Sedgwick's group personal insurance division, said staff 'don't have to run the gamut of insurance sales representatives; paperwork is kept to a minimum; and payment of premiums is conveniently handled through credit cards, direct debit or payroll deduction'.
He added that more and more companies were adopting the system as part of an attempt to offer staff voluntary benefits alongside those that they pay for.
Sedgwick, which specialises in the design and implementation of these schemes, favours the panel approach for household and motor insurance. As a result, it has selected a few operators on the basis of their financial and administrative structures. These operators can be contacted by telephone six days a week, including evenings. They have access to more than 10 vetted reputable suppliers of insurance, enabling them, if required, to take out cover immediately.Reuse content