With many legislative changes in the works, the group risk market is hesitant at present. Owain Thomas examines the bigger picture of what is to come for group income protection.
One of the most notable developments for the group risk sector over the past 12 months was the inclusion of an exemption for insurance schemes in the new legislation removing the default retirement age. While this has been welcomed by all concerned, it does come with a sting in its tail that many in the industry may have missed – it does not apply to self-insured schemes. This means that employers offering such schemes could find themselves liable for a lifetime’s worth of income protection (IP) payments or risk breaking the law by introducing an age limit for eligibility. Any empl...
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