Key Insights on Workplace Protections from Zurich's Latest Report

Zurich's latest publication sheds light on commonly overlooked workplace protections, offering valuable insights that benefits brokers cannot afford to miss.

With open enrollment around the corner, Zurich's report provides timely information on common gaps in employee benefits coverage, despite not presenting new research. A 2024 LIMRA survey underscores this need: only 56% of employees understand their life insurance, and just 47% comprehend their disability coverage. Harriet Taylor, Zurich's global head of employee benefits, highlights that this lack of understanding can lead to unaddressed protection needs, leaving existing coverage gaps crucially unseen.

Key Coverage Gaps Identified

Zurich's report identifies three significant coverage shortcomings: inadequate income protection for higher earners, life insurance ending with employment, and insufficient long-term care coverage post-retirement. These gaps should be communicated to HR professionals during pre-enrollment discussions, positioning benefits brokers as proactive advisors rather than reactive respondents.

The Power of Voluntary Insurance Top-Ups

One solution Zurich emphasizes is the use of voluntary insurance top-ups. Often ignored by employees due to lack of automatic enrollment, these options can enhance basic employer-provided benefits maximally. They allow for increased coverage at favorable group rates, often without medical underwriting, encompassing life, income protection, critical illness, and accident insurance.

• Income Protection: Higher-level income replacement.
• Extended Life Insurance: Coverage beyond employment.
• Long-Term Care: Post-retirement needs met.

Targeting the Right Audience

Zurich suggests that top-ups are particularly beneficial during significant life changes such as starting a family, buying a home, or becoming a primary earner. Benefits brokers should prioritize conversations with clients in their 30s and 40s, aligning coverage with life's changing financial obligations. Additionally, the "sandwich generation" supporting both children and aging parents presents a unique opportunity for increased sales through complex coverage products that go beyond standard offerings.

Broadening the Employee Benefits Discussion

Filippo Mazzei, Zurich’s head of proposition management for corporate life and pensions, touts a holistic approach encompassing financial, physical, and mental resilience through offerings like savings planning, mental health support, and digital physiotherapy within group benefits plans. For brokers, this means transforming benefits reviews into broader discussions on workforce wellbeing.

With open enrollment usually occurring in October or November, brokers who share Zurich's insights early with HR contacts will stand out. Engaging clients with these details before enrollment can meaningfully influence benefits decision-making, providing a strategic advantage during this pivotal time.