Chris Morgan, Head of Product and Proposition Strategy within Canada Life's Protection business, comments on new research showing the majority of SMEs will change their approach to insurance-based employee benefits, following the recent increase to employer National Insurance contributions. 

A survey at micro, small and medium-sized enterprises to understand the actions that companies will likely take as a consequence of the increased employer cost, suggests 61% of companies will change their approach to insurance-based employee benefits, to cut costs, though 23% said they intend to make employee benefits work harder as they will raise awareness of what’s already available. 

This research suggesting SMEs could make changes to employee benefits comes at a time when the government is already concerned about employee health and employers’ roles in relation to it.

Commenting on the research findings, Chris Morgan, Head of Product and Proposition Strategy, Protection at Canada Life, said:

Our findings show that under increasing cost pressures, many SMEs are reviewing the employee benefits they provide to find savings. Given their knowledge of the positive impact these benefits have on employee health and business productivity, workplace protection advisers are well-placed to support firms and ensure any changes are carefully considered.

We know as an industry what a positive impact employee benefits can have on financial, physical and emotional wellbeing. It’s important that insurers and advisers work together to demonstrate this value and bring it to life for SMEs, so they can see why continuing to invest in employee wellbeing should remain a business priority.

Full press release: Majority of SMEs plan to change employee benefits practice on NIC increase

Press contact: Elle McAtamney, Canada Life, +44 7913 568213, elle.mcatamney@canadalife.co.uk