Can Salary Continuance Continue to be Affordable?
As companies ride the wave of the continuing soft general insurance market conditions and take advantage of steady premium reductions across property and general liability insurances, in stark contrast, Group Life (including death, total permanent disability and salary continuance) has slipped into a hard market where premiums have been skyrocketing in 2015.
With over 70% of Australian companies currently purchasing Group Salary Continuance insurance and making it available to their employees, the market-wide premium surges will no doubt impact a significant portion of employers nationwide.
“We are seeing standard premium increases of 20-40% across the board for Group Salary Continuance insurance. For long term cover (to age 65) or policies with poor claims experience, we have even seen increases of 100%, or more,” says Meaghan Morberger from Mercer Marsh Benefits™. “This is particularly distressing and disruptive for companies who may not have budgeted for such significant increases.”
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