The majority of the working population will be going back to work this week after the Christmas break, or are supposed to be at least. January is the worst month for people taking sick leave and according to some studies, between fifteen and thirty percent of those are not actually ill. Losing staff off to sickness is a huge cost to businesses in the UK, the CBI believes it could be up to £13.2 billion every year and could mean that some companies may consider taking out a private medical insurance policy for their employees to try and minimise the days they take off work. Despite the large number of people who notoriously ‘ring in sick’ when they might be nursing a hangover, can’t be bothered, or have somewhere else they would rather go, it seems there is also a lot of workers who are so dedicated they may be making themselves worse.

Over a third of people have in fact not taken a day off work when they are truly ill, according to research carried out by Bupa back in 2005. These employees may think they are being loyal but actually sometimes the best thing to do is stay at home and rest. If they don’t, they could make the illness worse and take longer to recover, even needing time off in the future for a longer amount of time than they would have had to take in the first instance, or pass it on to other staff. It’s a difficult balance to achieve, but one of the best things that employers can do to help both their workforce and the cost of illness to their business in terms of efficiency and productivity is to have corporate private health cover. By having access to the some of the best quality health services in the country, with shorter waiting times, staff can return to work in a quicker time than they might have normally.

More than a quarter of companies will be increasing the range of employee health benefits in the next year a survey has revealed. The report, “Bothered Britain”, which was carried out by Simply Health, found that 26 percent of businesses are planning on increasing their budgets for the benefits which include corporate health insurance. This research is positive news for the health insurance industry, as it appears that companies are more than doubling their spend on healthcare benefits than in 2008 despite the recession. It seems that bosses are recognising the importance of offering rewards to their staff – giving many benefits including improved performance and efficiency.


While many companies are struggling through the credit crunch, it may have seemed an attractive option to cut down on expenditures that may not necessarily be a necessity to the everyday running of the business. Private medical insurance and other health benefits may have been among these costs but this latest report shows that attitudes among HR staff have changed. Six in ten of those who took part said that health benefits have are more important now than they were last year, and another four in ten said they are key in the recruitment process. This is just one of the main benefits of taking out a private health insurance policy for employees, as it can attract a higher calibre of candidates. It may be an immediate cost to a company, but in the long term a better performing staff who will have access to top quality healthcare to return them to work as soon as possible should they become ill, could save a lot of money.

As costs of having a private medical insurance policy have risen across the majority of health insurance providers, new research has found that a third of companies who currently offer private medical cover for their staff are looking at reviewing their policies. Aon Consultancy, who carried out the study, found that 16 percent of those were considering cash plan private medical insurance as an alternative to their current policies. Cash plan policies are a much more cost effective way of providing health insurance for staff, and is considered one of the top employee benefits available.


Companies are still deciding to take out private medical insurance policies, despite the price increase which Aon Consultancy believe to be up to 9 percent in some cases. This is evidence of the importance that providing good employee benefits are to the running of a company, either big or small, through improving general staff morale for one. The main reasons that the study found for continuing to provide corporate private medical insurance throughout the recession were to make sure that employees returned to work quickly following a bout of illness (53 percent), to provide employee wellbeing as part of their corporate responsibilities (56 percent) and over two thirds of the 653 employers that took part in the study offered PMI as part of a competitive benefits package. As well as this, private medical insurance is one way of attracting a higher calibre of staff so overall productivity could increase and save costs for businesses in the long term.

Employers are being warned that increasing numbers of workers will have chronic diseases and conditions over the next twenty years. The number of people with diabetes and respiratory conditions are expected to rise by over seven percent by 2030. The figures have been published in a report called ‘Healthy Work’, following research carried out by BUPA alongside the Work Foundation, the Oxford Health Alliance and RAND Europe. It’s bad news for companies as productivity levels could fall so they are being advised to take steps to help themselves. One thing they could do is take out a private medical insurance policy.


The main factors that will cause the problem are obesity, alcohol consumption and smoking. A private medical insurance policy will help a company’s workforce combat these issues firstly by making them aware that they have a problem. A lot of people are conscious about their weight, but many don’t realise that they are actually classed as obese or even morbidly obese. This can be discovered in a general health check that can be received in a private healthcare centre. Similarly, a lot of people do not realise the effect that their drinking can have on their health until it is too late. Advice on changing lifestyle, including help on giving up smoking as well can also be given by the services made available to a company’s staff through corporate private medical insurance. All these health problems can lead to very serious conditions in the long run and will affect businesses in the future, but this can all be prevented if action is taken now.