Dental Benefits Survey

Transcription

1 Dental Benefits Survey 12

2 About benefits Introduction - key facts 1 On what basis are benefits chosen? 2-4 Health and wellbeing benefits offered to staff 5-7 Changes to benefit provision in 12 8 Assessing the value of benefits packages 9 Reviewing benefits portfolio in 11/12-12 Benefits considered most valuable for recruitment, retention and employee wellbeing Factors affecting the choice of dental plan provider 15 Attitudes to dental plans About dentistry Introduction - key facts 18 How employees access dental care 19 Views on NHS dental care Attitudes to dentistry 21 About dentists About brokers Introduction - key facts 24 Companies accessing brokers 25 Perceptions of broker services 26 Importance of services provided by brokers Reasons for not using a broker 29 Company decision makers research This is based on a Denplan survey among employee benefit decision-makers in UK companies. The survey was carried out online between January 11-17, 12. The survey was completed by 5 respondents. Of these, 33% were from large companies with over 25 employees with the same percentage from medium sized companies with -25 employees. Those from smaller companies accounted for the remaining 34%. Respondents came from a wide range of business sectors that included professional services, retail, manufacturing and health. Some % were at CEO/managing director level, 18% were HR director/managers, 12% were finance directors, while around 39% held a variety of other decision making positions. Samples were sourced through an online panel (Research Now). No weightings were applied to the survey results and so all figures quoted as companies means companies in this survey and cannot be taken as representative of all companies in the UK. Samples are unweighted and therefore are not comparable as like for like. Consumer and employee research A Denplan survey among UK consumers was conducted online by YouGov in January 12. The total sample size was 4,1 adults. Of these, 2,5 were employees working either full time or part time. The figures have been weighted and are representative of all UK adults (aged 18+). The 11 and data in this report is also from YouGov. The term payment plan refers to capitation and maintenance plan patients. Dental private fee charges Taken from Denplan s Supplementary Insurance Benefit Survey, conducted in January, January 11 & January 12 online among Denplan member dentists.

3 About benefits Introduction Steve Gates Managing Director Denplan I am delighted to introduce Denplan s 12 Dental Benefits Survey. This report will give you the most up-to-date information to support your discussions with clients. The findings provide some rare insights into the habits, opinions, hopes and concerns expressed by companies of all sizes and by employees from across the UK. Some trends continue, while others have levelled off and a few have reversed. Certainly, the economic backdrop makes the figures very interesting, providing new challenges and opportunities within the marketplace. People are highly sensitive to cost but fully appreciate value for money. Steve joined Denplan in 1995 and in 1 became Managing Director. In this role he is responsible for the strategic direction and growth of all Denplan activities, along with the Denplan Board and other senior management team members. Steve focuses specifically on new product and business development, while maintaining close links with the dental profession. 58 % 72 % 79 % I m sure this report will provide real value as you meet the needs of your audience in the year ahead. Key facts of all companies will be reviewing their benefits in 12 1 of companies use employee feedback to assess the value of their benefits package 2 of employees cite regularity of use as important when deciding which benefits to take up 3 1 Source: Denplan decision-makers survey January 12. All respondents. (N = 5) 2 Source: Denplan decision-makers survey January 12. All respondents offering health and wellbeing benefits to their staff. (N = 374) 3 Source: Denplan / YouGov survey, January 12. All respondents in full or part time employment with access to employee benefits asked about. (N = 7) 4 Source: Denplan decision-makers survey January 12. All respondents reviewing benefits for 12 who don t currently offer a dental plan to their employees. (N = 222) 5 Source: Denplan/Yougov survey January 12. All respondents in full or part time employment where employer doesn t offer access to a dental plan. (N = 1824) 71 % 62 % of companies agree that dental plans enhance employee wellbeing 1 of employees would consider a dental plan if one was offered by their employer 5 32 % of companies reviewing their benefits portfolio for 12 who don t currently offer a dental plan are considering adding one this year 4 Introduction Key facts 1

4 On what basis are benefits chosen? Factors considered important by employers Cost of benefit Value for money Something that will be regularly used by employees Something that will enhance employee wellbeing Employee requests/demand Predictable cost Comparison with what other companies in the same industry offer Base: All decision makers Whilst cost and value for money continue to be the biggest factors considered by employers when they choose benefits for their staff, surprisingly, given the current economic climate, their importance has reduced. The desire to enhance employee wellbeing is close behind at 46% which echos a trend by employers to focus on health and wellbeing benefits. Decision makers also acknowledge the importance of requests from employees. 2 On what basis are benefits chosen?

5 Factors considered important by employees Cost Value for money Can be used regularly Covers unforeseen events and emergencies 86 % of employees said cost and value for money were paramount when choosing benefits Base: All employees who have access to benefits The survey asked employees which factors they considered were important when choosing a policy when having to pay for benefits partly or completely themselves. 86% rate cost and value for money as paramount. These figures show a jump of around percentage points on those from 11, perhaps reflecting wider economic factors and belttightening across the UK. Regularity of use remains an important factor at 79%. The same high percentage was recorded for the reason of guarding against unforeseen events and emergencies. Both these issues are up slightly on the 11 figures. On what basis are benefits chosen? 3

6 Change in factors influencing choice of benefits over the past 12 months 7 6 Cost of benefit Value for money Something that will be regularly used by employees Employee requests/demand Predictable cost Comparison with what other companies in the same industry offer 5 4 Less important Stayed the same More important Base: All decision makers Cost and value for money have increased in importance for decision makers when they look back on their choices of benefits over the previous year. Companies are also sensitive to costs being predictable. Some 39% say this is now a more important issue. This indicates a need for prudence and certainty amid volatile economic conditions. Other factors, such as regularity of use and employee requests, are less important but still noteworthy. 56 % of companies say value for money has become a more important factor affecting their choice of benefits 4 On what basis are benefits chosen?

7 Health and wellbeing benefits offered to staff The range of health and wellbeing benefits offered to staff remains broad. Childcare vouchers, critical illness, PMI and dental plans are among the most popular. But provision has reduced in some categories. In fact, a larger share of companies now offer no health and wellbeing benefits at all. 27 % of companies offer no health and wellbeing benefits at all Benefits offered by companies Dental Plan PMI Health Cashplan Childcare Vouchers Gym Subsidy Healthy Living Programmes Critical Illness/Payment Protection Employee Assistance Programme Health Screening Smoking Cessation Programme Other None Base: All decision makers Health and wellbeing benefits offered to staff 5

8 Health and wellbeing benefits offered to staff (by company size) 49 % of small companies offer no health and wellbeing benefits at all Dental Plan PMI PMI (inc, those mentioning private health in Others) Health Cashplan Childcare Vouchers Gym Subsidy Healthy Living Programmes Critical Illness/Payment Protection Employee Assistance Programme Health Screening Smoking Cessation Programme Other None Small (- employees) Medium (1-25 employees) Large (251+ employees) Base: All decision makers Broadly speaking, the larger the company, the more likely that a range of health benefits will be offered to employees. Perhaps the most noteworthy figure of all is that 49% of small companies now offer no provision of any kind of health or wellbeing benefit. The figures show a ratio of broadly of dental plan provision among large-medium-small companies. In other words, large enterprises are three times more likely to offer dental plans than their smaller counterparts. 6 Health and wellbeing benefits offered to staff

9 Employee take-up of health and wellbeing benefits Private Medical Insurance (PMI) Dental Plan Health Cashplan Childcare Vouchers Gym Subsidy Healthy Living Programmes Critical Illness/ Payment Protection Employee Assistance Programme Health Screening Take-up (overall) Take-up (at least partly employee-paid) Base: All employees who have access to the respective benefits through work Employees are much more likely to take up a benefit if they do not have to make a financial contribution towards it. But some benefits are more popular than others. Employees are most likely to take up PMI, as it is more likely to be paid for completely by the company. Dental plans are taken up by three in of employees when offered. And of those that take up a dental benefit, there is roughly an equal split that have their benefit completely paid by the company and at least partly paid for by the employee. Health and wellbeing benefits offered to staff 7

10 Changes to benefit provision in 12 Benefits that companies are thinking of adding in PMI Dental Health Cashplan Childcare Vouchers Gym Subsidy Base: All decision makers who are reviewing benefits in 12 and not offering the respective benefit already Healthy Living Programmes Critical Illness/Payment Protection Employee Assistance Programme Health Screening Smoking Cessation Programme The stand-out statistic here is the sizable number of companies that are considering adding a dental plan at 32%. The figure also massively exceeds interest in other benefits, including insurance products such as PMI and health cashplans, where the level of interest is at least 12 percentage points lower. 32 % of companies who are reviewing their benefits and don t currently offer a dental plan are considering adding one 8 Changes to benefit provision in 12

11 Other Assessing the value of benefits packages How do you assess the value of the benefits package you offer your employees? 8 Employee Feedback Usage Levels Financial Assessment/ROI Total Small (- employees) Medium (1-25 employees) Large (251+ employees) Base: All decision makers offering health and wellbeing benefits to their staff (N = 374) What helps a company decide whether to choose, retain or remove benefits? The answer is similar for all companies no matter their size. Employee feedback has the greatest influence, with 72% of companies overall putting the experiences and views of their staff as top of the list. Even in the tougher economic climate, cost is well down the agenda. Surprisingly few companies view ROI as a major factor in the value of a benefits package. In fact, usage levels are generally considered more important, especially among larger companies. This emphasises the market potential of products that are used well by employees. 72 % of companies use employee feedback to assess the value of their benefits package Assessing the value of benefits packages 9

12 Reviewing benefits portfolio in 11/12 Employee benefits portfolio reviews 7 6 Total Small (- employees) Medium (1-25 employees) Large (251+ employees) 5 4 Review of benefits portfolio in 11 Review of benefits portfolio in 12 Base: All decision-makers (N=5) Well over half of companies reviewed their benefits portfolio in 11. And the same amount 58% of those surveyed will be completing a review in 12. The larger the company, the more likely that a review will take place. More than two thirds of the largest enterprises 68% - will conduct a review. Reviewing benefits portfolio in 11/12

13 Reasons for conducting a review by company size % of companies are planning to review their benefits portfolio because of economic conditions Review in 11 Review for 12 Review in 11 Review for 12 Review in 11 Review for 12 Review in 11 Review for 12 Total Small (- employees) Medium (1-25 employees) Large (251+ employees) Economic climate Always review benefits each year Specific benefit implementation (e.g. flex implementation) Other (please specify) Base: All decision-makers who are reviewing benefits in 11 or 12 The reasons for carrying out a review in 12 remain similar to those in 11. But there are changes worth noting. Most of the companies reviewing their benefits, 62%, plan an annual review in 12. But this is down percentage points on 11 across the board. For larger companies, the desire for an annual review has reduced more sharply, by 14 percentage points. The economic climate has become a more important reason for carrying out a review among medium-sized and large companies. For this last group, this reason has almost doubled in importance, from 15% to %. For companies of all sizes, the economic climate is cited as a driver by % in our survey, up from 23% in % of all companies will be reviewing their benefits in 12 Reviewing benefits portfolio in 11/12 11

14 Reviewing benefits provider 67 % of companies offering PMI are reviewing their provider this year In the current economic climate, it s no surprise that companies are reviewing their existing benefits and providers. PMI is the most likely to be reviewed, with 67% of companies re-evaluating their current 7 arrangements. The figures are 6 much lower for other benefits. 5 But between one third and half 4 of all companies are carrying out reviews. Apart from critical illness, EAP and health screening, all other benefits 11 are more likely to be reviewed in 12 than in 11. PMI Dental 12 Health Cashplan Childcare Vouchers Gym Subsidy Healthy Living Programmes Critical Illness/ Payment Protection Employee Assistance Programme Base: All decision makers who are reviewing benefits in 12 for the respective benefits they offer Health Screening Smoking Cessation Programme Reasons for not reviewing benefits The reason cited most for not having Happy with existing providers Total Not a business priority Medium (1-25 employees) Have a regular programme to review benefits not due for review this year Small (- employees) Large (251+ employees) There is no financial/economic need to do so Other a review of benefits is that it s simply not a business priority. This is especially the case among small companies. Medium and large-sized companies are most likely to be happy with their providers and so a sizeable number are not planning a review. Interestingly, % of companies don t see the financial need to review their benefits package. 12 Reviewing benefits portfolio in 11/12

15 Benefits considered most valuable for recruitment, retention and employee wellbeing Which benefits do companies believe will help towards specific business goals? PMI Dental Plan Health Cashplan Childcare Vouchers Gym Subsidy Healthy Living Programmes Critical Illness/Payment Protection Employee Assistance Health Screening Smoking Cessation Programme 15 5 Recruiting new staff Retaining existing staff Enhancing employee wellbeing Base: All decision makers (N = 5) Critical illness protection along with childcare vouchers and PMI are mentioned most often as valuable for recruiting and retaining staff. Dental plans remain third for their importance in enhancing employee wellbeing, after health screening and gym subsidies, but ahead of both PMI and health cashplans. 29 % of companies believe that dental plans enhance employee wellbeing Benefits considered most valuable for recruitment, retention and employee wellbeing 13

16 How much influence do benefits have on employees? 26 % of people would be attracted to a new employer by a dental plan Keeps me loyal to my current employer Dental Plan Private Medical Insurance (PMI) Health Cash plan Gym Subsidy Healthy living programmes Childcare Vouchers Attracts me to a new employer Demonstrates your employer s support of your wellbeing Base: All employees Dental plans are viewed by employees as increasingly important. In fact, the survey showed that employees see dental plans as more important than any other benefit in demonstrating their employers support for their wellbeing. The results for 12 show rises in each of the three categories in our survey compared to 11. Some % of employees believe that having a dental plan demonstrates that an employer supports their wellbeing (up from 28% in 11). When it comes to switching to a new company, 26% would be attracted by a dental plan as part of their jobs package (up from 23%), while a notable 15% would stay loyal if their existing employer offered this benefit. With other benefits, there s often a big disparity between the views of employers (on the previous page) and the opinions of employees shown here. For example, 27% of companies believe that childcare vouchers help with recruitment. But only 18% of employees agree. This shows the importance of communications with employees to help companies benchmark their benefits programmes against needs. 14 Benefits considered most valuable for recruitment, retention and employee wellbeing

17 Factors affecting the choice of dental plan provider Reasons among companies for choosing a provider Price Choice of plans Flexibility of product Simple product/ easy to understand Good account management Access to the provider s network of dentists Good customer service Good claims handling Broker recommendation Base: All decision makers providing a dental plan Focusing specifically on dental plans, we asked decision makers what factors influenced their choice of provider. Price remains the most frequently mentioned factor for choosing a specific dental plan provider in 12 (as it was in 11 and ). Just over half of respondents, 56%, gave this reason. Good customer service, simple product and the choice of plans are the next most important factors. If there was one factor above all others - what would it be? Price Choice of plans Flexibility of product Simple product/ easy to understand Good account management Access to the provider s network of dentists Good customer service Good claims handling Broker recommendation Base: All decision makers providing a dental plan When asked to rank the most influential factors when it came to a decision, price was highlighted by 22% of respondents. Having a simple-to-understand product came a close second at 21%. The most notable changes in the 12 results from 11 were the increases attributable to choice of plans and flexibility of product. Factors affecting the choice of dental plan provider 15

18 Attitudes to dental plans Views among employers Help to manage absenteeism and time taken off for sickness Enhance employee wellbeing Fit within company ethos and show we care about employees Help attract new employees Help retain existing employees Keep our benefits package relevant for today s market Base: All company decision makers As we saw in 11, there s a strong belief among companies that dental plans enhance employee wellbeing (71% of decision makers agree, the same as last year). 62% of decision-makers also believe dental plans fit within their company ethos and show they care about employees. Companies value dental plans increasingly for additional reasons. Some 31% believe that plans help with managing absenteeism and time taken for sickness. A growing proportion of decision-makers also think that dental plans are likely to help attract new staff (33%) and retain existing employees (37%). 71 % of decision makers agree that dental plans enhance employee wellbeing 16 Attitudes to dental plans

19 Views among employees 62 % of people would consider a dental plan if one was offered by their employer I think a dental plan is a tangible, usable employee benefit I would consider a dental plan if my employer offered it I would appreciate access to a dental plan as part of my benefits package I would consider a dental plan an integral part of my company s wellbeing strategy Base: Employees working for an employer that does not offer a dental plan (N=1936) Among employees the perception of a dental plan being a usable benefit is key, with 55% of employees believing a dental plan to be a tangible usable benefit. This fits in with the findings of our study on regularity of dental attendance, which are discussed in the next section. There also appears to be good scope for companies to provide dental plans as part of benefits packages with 53% of employees who don t currently have a dental plan stating they would appreciate access to it as part of their benefits portfolio, and 62% saying they would consider a dental plan if their employer offered it. Attitudes to dental plans 17

20 About dentistry Introduction Roger Matthews Chief Dental Officer Denplan Fears over NHS cutbacks, access problems and rising costs of dentistry are worrying employees. But this concern is even greater among company decision-makers. They understand that there s a direct link between oral health and the overall wellbeing of their staff. This makes dental benefits schemes all the more attractive and valuable for brokers, companies and employees alike. Dental plans provide security and certainty and are well recognised as a tangible benefit that would be well used and appreciated. Roger joined Denplan in 1995 having spent years working in general dental practice and as an advisor for the Medical Defence Union. He oversees dental advice for the company and its links with professional bodies. He is also responsible for Denplan s Professional Services department. 84 % 76 % 21 % 6 % Key facts of employees think that good oral health supports their overall wellbeing 1 of UK adults visit the dentist at least once every two years 2 of people believe NHS dental access issues are affecting their oral health 1 of companies believe that government spending cuts will impact NHS dental care 3 1 Source: Denplan / YouGov survey, January 12. All respondents in full or part time employment. (N = 5) 2 Source: Denplan / YouGov survey, January 12. All respondents. (N = 41) 3 Source: Denplan decision-makers survey January 12. All respondents. (N = 5) 21 % of people believe NHS dental access issues are affecting their oral health 18 Introduction Key facts

21 How employees access dental care How often do you see a dentist? Despite the economic squeeze on people s incomes, a trip to the dentist is still considered very important among the UK public. 76% of adults say they visit the dentist at least once every two years, no change from % of respondents say they attend every six months Never Only when in pain Less regularly Every 6 months At least once every year At least once every 2 years January 12 January 11 Base: All UK adults (18+) Geographic comparisons North Midlands East London South Wales Scotland Northern Ireland Base: All regular dental attendees Attendees in the North or Scotland are most likely to visit the dentist regularly (8%), while London (66%) and the South (64%) have the lowest proportion of regular attendees. How employees access dental care 19

22 Views on NHS dental care What employees believe There are issues regarding access to NHS dentistry at the moment Good oral health supports your overall well-being The costs of dental care and treatment are rising I am having trouble finding a dentist NHS dental access issues are having an effect on my oral health Base: All employees As politicians and the media focus more debate on cutbacks, it s no surprise that employees are wary of the big issues affecting NHS dental provision. 74% are sure that the cost of dental care is rising, while 59% believe there s an issue with access to NHS dentistry. That said, much smaller numbers are actually experiencing problems in receiving treatment. But these are still a cause for concern - with 17% having trouble finding a dentist and 21% saying that access issues are impacting their oral health. A resounding majority of employees (84%) think that good oral health supports their overall wellbeing. 84 % of employees think that good oral health supports their overall wellbeing Views on NHS dental care

23 Attitudes to dentistry Our employees are having trouble finding a dentist I am aware of the issues regarding access to NHS dentistry at the moment NHS dental access issues are having an effect on our employees dental health Employees would recognise the value of a dental plan as a tangible, usable benefit Good dental health supports your overall wellbeing The cost of dentistry puts my employees off going to a dentist I am aware of the rising costs of dental cover I believe that Government spending cuts will have an impact on NHS dental provision Base: All decision makers The views of companies reflect the concerns of employees (as shown on the previous page). This makes perfect sense as many decision-makers and members of their families may also be NHS users. Companies are also sensitive to the views and experiences of their staff. However, on each point, decision-makers are actually more aware than their employees. It s possible to draw the conclusion that they are cautious about the future or possibly see a bigger picture that gives them cause for concern. For example, as we have just seen, 59% of employees are worried about access to NHS dental services. For companies, this concern is much greater at 74%. Among staff, 74% believe that cost is rising. For companies, the figure is 83%. However, both groups wholeheartedly agree that good dental health is linked to overall wellbeing. This view is held by 88% of companies. 88 % of companies believe there is a link between good dental care and general wellbeing Attitudes to dentistry 21

24 About dentists Changes in dental charges The additional regulation which increased the cost base for dentists and resulted in some treatment charges increasing by as much as 26% from to 11, appear to be embedded within their charges, as this year we have seen a more modest 3-4% increase on most treatments. The area in which we have seen the highest increase in charges are the regular examinations and scale and polish which are the most frequently performed treatments by dentists. Both have increased by 11% from 11. AVERAGE CHARGES Full exam fee for a private patient Private scale and polish fee Panoral radiograph Composite filling - posterior 2 surfaces Dentine bonded crown Metal bonded porcelain crown Metal bonded porcelain bridgework - pontic Permanent root canal treatment - molar Zirconia crown Average Average Average Base: Denplan member dentists Insurance Benefit Survey, February About dentists

25 How charges vary by region 11 % is how much the cost of an examination and scale & polish have risen 8 North of England Midlands South & West Wales South East (inc London) 7 6 Scotland 5 4 AVERAGE CHARGES 12 PRICING Composite filling Full exam fee for a private patient Private scale and polish Base: Denplan member dentists Insurance Benefit Survey 12, February 12 About dentists 23

26 About brokers Introduction Pam Whelan Corporate Dental Sales Manager Denplan What s most important to clients expertise, getting a good deal or much more? The results in this section illustrate how attitudes to brokers vary by company size. The findings will prove useful whether brokers are targeting large, medium or small companies with their marketing messages over the coming year. There are clear opportunities to capitalise on specific needs as well as convincing more companies about the benefits of using a broker. Greater use of the web by many companies in researching information also provides brokers with a challenge to get across their own message online. Pam joined Denplan in as a Corporate Consultant having previously worked within the financial sector. In January 3 Pam took over responsibility for the relationship with dental corporate bodies, becoming Corporate Sales Manager in January 5, where she is responsible for the internal and external Corporate Sales team. 48 % 87 % 19 % Key facts of companies use broker advice in procuring benefits 1 of companies that use a broker feel it represents value for money 2 of companies that don t use a broker do not understand the benefits that a broker would deliver 3 1 Source: Denplan decision-makers survey January 12. All respondents. (N = 5) 2 Source: Denplan decision makers survey January 12. All respondents using a broker for procurement/admin. (N = 245) 3 Source: Denplan decision makers survey January 12. All respondents not using a broker for procurement/ admin. (N = 265) 19 % of companies that don t use a broker do not understand the benefits a broker would bring 24 Introduction Key facts

27 Companies accessing brokers A substantial number of companies continue to consult brokers in their benefit decision-making with 53% of companies overall citing broker advice as a method used in their benefits search. The vast majority of these companies formally engage a broker to assist in procurement and/or administering their benefits - 48% of companies overall. What s notable is the number of companies looking to the web for information. This is particularly the case with small companies, where more than half now take this approach. This presents a challenge to brokers to get their message across via the web. Methods used for researching benefits Companies using brokers for employee benefit procurement and/or administration Total Small (- employees) Medium (1-25 employees) Base: All decision makers Large (251+ employees) Web search (e.g. Google) Specific industry website Industry publication Benefits book or annual Special supplement in publication Broker advice/ information Other Total Small (- employees) Medium (1-25 employees) Large (251+ employees) Base: All decision makers Companies accessing brokers 25

28 Perceptions of broker services The overwhelming majority of companies accessing broker services feel they represent value for money. 87% of companies agreed with this statement. The belief is strongest among medium-sized businesses, where the response has increased from 84% in 11 to 91%. 87 % of companies who use a broker agree services provided by their broker gives them value for money The figure is especially encouraging among companies within the financial sector, which may have a keener eye to cost/return on investment. 94% of these businesses believe that value for money is provided by brokers. Companies agreeing that services provided by brokers deliver value for money 9 Total Small (- employees) Medium (1-25 employees) Large (251+ employees) Professional Services Financial Services Manufacturing Base: All decision makers using a broker (N = 245) 26 Perceptions of broker services

29 Importance of services provided by brokers 34 % of companies see the importance of using a broker to provide expertise not available in-house With budgets becoming a focus for companies and employees alike, it is no surprise that the importance of brokers ability to negotiate deals/special rates has increased from 29% in 11 to 41% this year. Followed by their market advice (34%) and the expertise they provide (34%) which may not be available in-house. Those who have not tried the services of brokers are less convinced, with less than % rating any of these attributes as important. This presents a marketing challenge for brokers - to convince these companies of the genuine benefits they can offer. Importance of services provided by brokers - as rated by all companies VERY IMPORTANT (%) 4 Impartial comprehensive market review Negotiating deals/ special rates Keep me updated on changes in the market Support in communicating the value of benefits to employees Providing outsourced admin/services Give access to technology solution (e.g. flexible benefit platforms) Provide expertise not available inside the company Broker used 12 Broker used 11 Broker not used 12 Broker not used 11 Base: All decision makers Importance of services provided by brokers 27

30 Importance of services provided by brokers - as rated by companies of different sizes VERY IMPORTANT (%) 4 Impartial comprehensive market review Negotiating deals/ special rates Keep me updated on changes in the market Support in communicating the value of benefits to employees Providing outsourced admin/services Give access to technology solutions (e.g. flexible benefit platforms) Provide expertise not available inside the company Small (- employees) 12 Medium (1-25 employees) 11 Base: All decision makers Small (- employees) 11 Large (251+ employees) 12 Medium (1-25 employees) 12 Large (251+ employees) 11 The profile of importance of services provided by brokers has remained consistent for the last 3 years. It underlines the fact that small companies and medium/large enterprises view brokers differently and have diverging views about the importance of their services. Put simply, small firms are generally less convinced about the benefits because many have not tried broker services before. Large companies are far more convinced about the value of broker services. They see the ability to negotiate special rates as being most important (27%). But this is exceeded by the share of mid-sized businesses with the same view (29%). Companies in both categories also rate the expertise, market awareness and market updates provided by brokers. 28 Importance of services provided by brokers

31 Reasons for not using a broker If brokers are to increase their market share, then what obstacles must they overcome? The answers vary, depending on the size of their potential customers. But there are common factors too. Following up on these points will help brokers in their marketing strategies. The cost of using a broker was viewed as the main barrier by 34% of companies overall. A number of companies of all sizes also share a desire to have a direct relationship with their benefits provider (25% overall). Smaller companies present the greatest challenge for brokers. As well as citing cost (42%), 23% do not understand the benefits of using a broker. A sizeable number of large companies (42%) do not use a broker because they have dedicated staff in-house to manage employee benefits. Choosing dental care services may also be a business-as-normal activity for their procurement team (36%). However, these businesses are less cost-sensitive and are more likely to understand how a broker could help them. Medium-sized companies fit somewhere in between the two other groups in most instances. But a greater amount (28%) like the idea of a direct relationship with their provider and 21% would need to be won over on the benefits of using a broker. Reasons for not using a broker VERY IMPORTANT (%) 4 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 Previous experience Wish to have a direct relationship with our benefit providers Other (please specify) Small (- employees) 12 Small (- employees) 11 Medium (1-25 employees) 12 Medium (1-25 employees) 11 Large (251+ employees) 12 Large (251+ employees) 11 Base: All decision makers not currently using a broker for procurement/admin (N = 265; Small N = 114, Medium N = 75, Large N = 76) Reasons for not using a broker 29

32 Denplan Limited, Denplan Court, Victoria Road, Winchester, SO23 7RG, UK. Tel: +44 () Fax: +44 () Registered in England No Registered address Hambleden House, Waterloo Court, Andover, Hampshire SP 1LQ. Part of Simplyhealth, Denplan Limited is an Appointed Representative of Simplyhealth Access which is authorised and regulated by the Financial Services Authority. This information can be checked by visiting the FSA register which is on their website: or by contacting the FSA on Denplan Limited is regulated by the Jersey Financial Services Commission. Denplan Limited only arranges dental insurance from Simplyhealth Access. Premiums received are held by Denplan as agent of the insurer. INTR