12 News analysis


Opportunity for brokers to help SMEs provide valuable dental benefits for staff “I don’t think that a lot of employees even know what levels of NHS


Health insurance brokers are delivering value for money, according to a survey of their clients conducted by dental benefits provider Denplan, but many SME employers still need to be convinced about the benefits of intermediation. The survey of 626 “employee benefit decisions makers” in UK companies,


seen exclusively by Health Insurance, found that more than half (56%) use broker advice in procuring benefits. This proportion does not vary significantly between large and small companies and the latter are the most likely to rate highly the value for money represented by brokers. Among companies not using a broker, cost was cited as the main barrier (30%


of companies overall) while 21% said they did not understand the benefit of using one. This last percentage rises to 31% among companies with 101-250 staff. Matt Reeves, corporate channel manager at Denplan, said that barriers to


increasing market share among smaller companies “can be readily overcome.” “Our survey also revealed that small companies felt that the key service


provided by brokers is the provision of expertise, so brokers have an opportunity to communicate market insight and information to small companies to show how using a broker can add value,” he said. “Emphasising the specialist services offered will also help, because smaller companies are less likely to have dedicated staff to look after benefits and, as such, the potential for brokers to provide valuable support is increased.” While almost half (48%) of companies with more than 250 employees


who do not have a broker had dedicated staff in-house to manage employee benefits, this falls to just 21% of those with between 101-250 employees and 9% of those with under 100 staff. Laura McLaughlin, healthcare consultant at Jelf Employee Benefits said that


conversations with large and small clients tended to be different. “Larger clients are more educated about what the market is doing and


what their competitors are doing and they will conduct surveys with staff and have a feel of what employees are looking to receive,” she said. “Smaller companies are looking at the bottom line. They will often ask us to put forward dental quotes but once they look at the detail of the policy and the cost attached to it the conversion rates are not particularly high.” She said that it was important to spend time educating employees about


the benefits on offer in order to demonstrate value as a broker and suggested that providers could support intermediaries by providing updates on trends in NHS and private dentistry that could be shared with clients.


access are like,” she said. “My observation would be that people do not understand whether they have an NHS or private dentist. I don’t think there is enough education or specific information out there for people to make an informed decision. This is why I think some providers need to improve marketing and educational materials for us to use to increase sales and awareness.” HI


REASONS FOR NOT USING A BROKER


Have dedicated staff in-house to manage employee benefits


It is a function of our normal procurement team


Cost of engaging a broker is too high


Don’t understand the benefit using a broker would bring


12% Previous experience


Wish to have a direct relationship with our benefit provider


11% Other (please specify) 0% 0 10 20 30 40 50 Total


Small (0-100 employees)


Medium (101-250 employees)


Large (250+ employees) Source: Denplan survey of 275 employers not currently using a broker Cost of treatment leads thousands to delay getting dental care


Money worries are deterring people from getting dental treatment, according to a national survey of more than 11,000 people, commissioned by the NHS Information Centre. Just over a quarter (26%) of respondents said that the type of dental treatment


they chose had been affected by the cost, according to the 2009 Adult Dental Health Survey, while 19% said they had delayed dental treatment for the same reason. Dr Susie Sanderson, chair of the British Dental Association’s executive


board, said: “Achieving short-term money savings at the expense of longer- term health problems really isn’t wise. Neglecting your oral health can increase both the complexity of the problems you face and the cost of the treatment you must eventually have. Kirsty Jagielko, product development manager at insurer CIGNA HealthCare,


said delayed dental appointments had implications for employers as well as individuals. “For employers, the risk of employees not attending the dentist are directly


linked to the potential productivity issues or absences that could occur due to the pain caused by untreated conditions and the time taken out of the workplace to correct them,” she said.


HealthInsurance Dental costs were “often unexpected and much higher than most people


realise”, she said, while company-arranged plans have distinct advantages over other products designed to help people fund the cost of care. “The cover available on the high street or via a capitation plan is often much


more limited than the cover available through a company-arranged scheme,” she said. “Individuals will benefit from higher levels of reimbursement for treatments, no waiting periods before they can start using the plan and no requirements to be dentally fit.” Matt Reeves, corporate channel manager at dental capitation plan and


insurance provider Denplan, said the survey results reinforced the findings of Denplan’s dental benefits survey(see above). “Our survey indicated that people are also delaying appointments


for diagnosed treatment, which is more serious than delaying a routine appointment,” he said. “Forty-four per cent of employees said that having a dental benefit would change their view on cancelling a dental appointment.” Laing & Buisson’s2011 Dentistry UK Market Report shows that spending on


dental insurance more than doubled between 2004 and 2009. However, corporate spending was the only sector of the market that grew during the recession.


HI www.hi-mag.com April 2011 15% 21% 14%


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