Kuala Lumpur, 6 December 2013 – Employees in Asian countries including Malaysia consider Critical Illness coverage one of the most desirable elements in the Employee Benefits (EB) schemes offered by their employers, a survey commissioned by AIA Group shows, shedding insight on how companies could differentiate themselves as they compete to attract and retain talent in the markets. Yet less than 10% of employers offer Critical Illness as part of their employee benefits scheme. Are companies’ benefit programmes really keeping up with the real needs of their employees?
The survey, conducted by independent research company Honeycomb, interviewed 821 employees in Malaysia, Hong Kong, Singapore and Thailand and 413 multi-national and domestic companies in those markets. The top concern, mentioned by 4 in 5 employees, is the rising cost of medical care, followed by the financial position of their family if they cannot work due to serious illness, underlining the lack of protection in the Critical Illness area. It is not surprising therefore that employees rank Critical Illness as the most appealing benefit after Hospitalisation cover.
The majority of employers said they are concerned about benchmarking against competitors, because they believe Employee Benefits programmes play an important role in attracting and retaining talent. However when it comes to adding Critical Illness coverage to their schemes, they see cost as the most significant constraint - on average employers think it will add 38 per cent to their premiums. In reality, it may add less than 10 per cent to their overall premium – or less than 1% of their annual payroll. At this cost, 73% of employers say they are interested in adding Critical Illness to their Company Scheme.
“Employers think highly of EB Schemes as an incentive to attract and retain talent but far overestimate the actual cost implication,” said Bill Lisle, CEO of AIA Bhd., a leading provider of EB schemes in Malaysia. “Companies looking to offer Critical Illness coverage while staying within their budget constraints can consider restructuring their EB schemes to provide a different mix of benefits that enable them to offer Critical Illness cover while keeping cost increase to a minimum.”
The survey follows AIA’s recent launch of the Real Life Company brand position, reflecting the Company’s deep understanding of customers’ lives and the role AIA plays in helping families across the region plan for life’s ups and downs. Companies can play a key role, with 82% of employees believing that Employee Benefits schemes are important in making them feel valued.
Bill Lisle added: “As a market leader in Corporate Solutions, we believe this is the right thing to do and AIA is serious about taking the lead to advise clients on how best to incorporate Critical Illness coverage into their core Employee Benefits programme. We can provide expert advice to employers on how to redesign their existing scheme to address the real life needs of employees.”
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