Government is looking at how to incentivise SMEs to buy cover.
The role that group income protection (GIP) can play in tackling mental ill-health among employees has been recognised by MPs.
In a Commons debate, Nigel Adams, the parliamentary under-secretary of state for housing, communities and local government, said GIP “is clearly a product that works well for those employees who choose to buy it”.
However, he said SMEs, in particular, lack sufficient incentives to invest in GIP as it is currently structured.
“That is why we have been looking more broadly at incentives and obligations on employers,” he stated. “We will continue to engage with the industry, and I know that the Association of British Insurers will play a big role in that as well.”
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