Employee Benefits: We ve got you covered

Employee Benefits: We ve got you covered

Contents All of your employee benefit needs covered 1 The value of employee benefits 2 WHAT WE OFFER Key Person Insurance 3 Private Medical Insurance 4 Workplace Pensions 5 Group Income Protection 6 Shareholder / Partnership Protection 7 Group Death in Service Cover 8 Relevant Life 9 Group Critical Illness 10 NEXT STEPS Get in Touch 11

All of your employee benefit needs covered At Protean Risk, our Employee Benefits consultants are highly experienced in arranging bespoke employee benefit solutions for all stages of business, from start-ups requiring a private medical scheme through to corporates operating an established multi-product environment. Whatever the size or stage of your company, we can give you expert advice on both your employee benefits programme and your general insurances, allowing you more time to focus on your business. Our Employee Benefits team are passionate about delivering value throughout the process and offering clients a clearer understanding of their options in relation to the benefits they can offer within their businesses. With a growing client base of over 600 clients, we are proud to have nurtured extremely positive relationships with a diverse group of clients with customer service at the core of our business. Protean Risk is a Lloyd s broker which delivers specialist insurance broking services to firms in the investment industry, financial services, fintech and technology sectors. We believe in specialism, which is borne out through a recent survey in which 95% our clients agreed that we are experts in their business sector. Relationships with a wide range of providers enable our clients access to the insurers and products which are best suited to their specific business needs. As these needs change over time our depth of market access will ensure we can continue to match your needs with market leading solutions. Our aim from the outset has been to combine the knowledge and experience gained from working for global insurance providers with a high level of personal service and attention. Remaining true to our core values of sector specialisation, personal service and problem solving has allowed us to drive high levels of client satisfaction with 98% of clients telling us they would recommend Protean Risk. We re approachable, accountable and hugely enthusiastic about what we do. 98% of clients would recommend Protean Risk 95% of clients agree that we re experts in our business sector 91% of clients rated our team as very good or excellent 1

The value of employee benefits 80% of employees who ranked their benefits satisfaction as extremely or very high also ranked job satisfaction as extremely or very high (Source: EBRI, 2018) Offering benefits to your employees demonstrates that you are not only invested in their overall health and wellbeing, but their future. A well-structured employee benefits package can be a significant factor in attracting and retaining talent. 79% of employees cited a competitive benefits plan as an influencer (Source: Wellable, 2018) A good employee benefits package can increase your company s profitability by encouraging employees to engage in health and wellbeing programmes. Healthier employees mean reduced absences, increased productivity, and lower healthcare costs. 2/3rds of employees who ranked benefits satisfaction as extremely or very high also ranked their morale as excellent or very good. (Source: Employee Benefit Research Institute, 2018) 2

Key Person Insurance We specialise in the provision of bespoke key person planning to protect the legacy of your business, should you lose a key staff member to illness, injury or death. What we offer Although often overlooked, one of the most significant risks to a business is a key person becoming unable to contribute due to illness, injury or death. Our Key Person Insurance products provide a fixed monetary sum, agreed at inception, to help ease the financial burden following the loss of a key individual. It provides a financial safety net, giving the company breathing space to consider what happens next and could be deployed in a number of ways including: finding expertise to replace those that have been lost through death or critical illness the financial resources to continue running the business during a period of turmoil potentially redeeming company debt repayment commitments We are able to quickly and efficiently tailor a solution to meet your particular business requirements. Our expertise in the investment sector is combined with knowledge of the products available and access to a broad range of protection solutions. Key benefits Consultative approach to protecting your key people We take the time to understand your business Protecting the underlying value of your business Access to wide range of insurers including Lloyd s 40% of businesses would fail in less than a year if a key person or owner was unable to work (Source: Business Cover Expert, March 2017) 3

Private Medical Insurance As a specialist corporate Private Medical Insurance broker, Protean Risk helps to find ways for your employees to stay healthy and return to work swiftly if they fall ill or get injured, which is good for them and good for your business. What we offer 15 billion: estimated cost of work-related injuries and ill health 1.4 million: number of people in the UK suffering from a workrelated illness 30.7 million: working days lost due to workrelated illness and injury (Source: HSE, 31 October 2018) Many employers view the physical and mental wellbeing of their employees as one of the most business critical risks and mitigate this exposure through the use of corporate Private Medical Insurance (PMI). Indeed, providing staff with the opportunity to access prompt, private medical treatment at a network of hospitals and clinics gives them the best opportunity to return to work in good time, not only benefiting them, but also helping your business. Many PMI providers are now going one step further and addressing the prevention of staff illness through the provision of products and services to keep staff healthier. Corporate PMI schemes are becoming more effective in helping to attract and retain the best staff, encouraging them to get active while helping to enhance your company s reputation. Working with our key PMI providers, Protean Risk will help you navigate the myriad of options available to find the one that is right for your business and employees. Key benefits Unfettered access to all providers in the UK PMI Market Thorough understanding of the complex underwriting process Able to advise on a wide range of ancillary extensions 1 in 6 people experience mental health problems in the work place, such as anxiety, depression or stress (Source: MIND) 4

Workplace Pensions Through our specialist focus on small and medium-sized enterprises (SME s), we understand and empathise with the challenges faced by smaller firms in complying with their pension scheme responsibilities under auto-enrolment. What we offer Roughly one third of UK adults aren t saving at all for their retirement. Of those that are saving into a pension, many aren t saving nearly enough to give them the standard of living they hope for when they retire.: (Source: The Money Advice Service, 2018) Understanding your auto-enrolment legal obligations can be an aggravation and from our research it appears that many SME s aren t able to get the support and answers they need. We understand that many companies don t have the luxury of financial scale, or the physical resources to commit to running a pension scheme. Equally, we appreciate that your time is precious and committing sufficient resource into understanding the corporate pension market is not always possible. At Protean Risk, we offer a specialist service specifically designed to give SME s the advice and access to the type of solution usually reserved for much larger organisations. This is aimed to help you meet your legal obligations: Setting up and registering a pension scheme suitable for auto-enrolment Ongoing assessment of staff eligibility at each pay period Automatically enrolling and making contributions for all eligible jobholders Enrolling and making contributions for non-eligible jobholders who wish to join Managing the continuing compliance of the scheme Keeping records on how you have fulfilled your responsibilities Key benefits Our team are proven SME auto-enrolment specialists Support through the lifetime of the scheme Tailored solutions to meet your specific needs Free consultation to help you understand your options We offer this service in conjunction with our partners, Slone Capital. Slone Capital is an appointed representative of Lee Smythe & Associates Ltd who are authorised and regulated by the Financial Conduct Authority. 5

Group Income Protection As a business you want to build a strong professional relationship with your staff and part of that includes ensuring they still have an income if they become seriously ill or injured and are unable to work. Protect your employees and your business 1 in 7 employees are absent for 4 weeks or more each year with a serious illness or injury (Source: Ellipse research, 2016) Group Income Protection provides peace of mind to your employees so that they know they re covered if they suffer from such setbacks, especially when they still have bills to pay and in many cases a family to support. With Group Income Protection, benefits can be paid until a set age or limited for a set period of time and start after an agreed deferred period. We also offer policies that include rehabilitation services to help the employee recover and return to work. Other benefits can be included, such as: Cover for an employer s liability for NI contributions Long term supplementary benefit to cover continuing costs (such as pension contributions) Short term supplementary benefit to cover extra costs of paying temporary staff (6 months 1 year) Final lump sum (e.g. to fund early retirement) Working with our key providers, we will guide you through the Group Income Protection options available to find the one that is right for your business and staff. Key benefits An experienced team who can help tailor the right solution to meet your specific needs Support through the lifetime of the scheme Premiums are tax-deductible and treated as a business expense Often includes support services such as rehabilitation to help the employee back to work Build a strong relationship with your employees and give them peace of mind 6

Shareholder/Partnership Protection We help with providing company stability if a major shareholder, partner or member dies or becomes critically ill. Our team of specialists have extensive experience in helping businesses choose the most suitable option for this form of protection. What would your company do if a major shareholder, partner or member died? Anyone who has a significant share in a business should consider having protection to ensure that their company stays on track should a business partner, shareholder or member die or become too ill to carry on working. Having a comprehensive business protection solution can help ensure that your business can keep running smoothly if a key shareholder or partner dies or becomes critically ill. Without this type of cover, control of the business could be passed on to someone who has no experience of, or no interest in running it. Inheriting family members may have little or no idea on how to manage the business and end up running it in a way that is unacceptable to the other owners or even want to sell their stake in the company rather than become actively involved. Protean Risk offer various protection options designed to enable the surviving business owners to continue trading following the loss of a key member of the business. This is applied via a series of legal agreements that set out how the ownership is to be managed if a shareholder, partner or member passes away. It also helps to ensure that the inheriting family of the deceased receives the full value of their interest in the business. We also offer an option to cover the shareholder, partner or member in case of serious illness. Options available Life of Another: Business owners can apply for a policy on the lives of the co-owners representing the value of their share of the business. Premiums can be paid personally by each shareholder/partner/member. The business can maintain premiums although there will be tax implications which our team can discuss with you Own Life in Trust: Each business owner takes out a policy held under a business trust for the benefit of their co-business owners. In the event of a claim, the claim proceeds are paid to the surviving business owners to purchase the business share of the deceased Company Share Purchase/Company Buyback: This only applies to limited companies. The company takes out the insurance protection for each of the shareholders. In the event of a claim, the company receives the claim proceeds to purchase the shares back from the deceased shareholder s estate and then cancels these shares. Due to company law and tax procedures this is a relatively complex process and requires careful planning 7

Group Death in Service Cover A group death in service benefit can give your employees and their families peace of mind should the worst happen. Our team of experts will assess your needs and guide you through the process to arrange a suitable scheme. What we offer Making death in service cover available for your employees provides security for your workforce and their families and shows that you re an ethical and conscientious employer. Group Death in Service Cover provides a lump sum benefit should an individual die whilst employed by your organisation. The lump sum benefit which is normally two to four times salary is paid to their family or next of kin. The benefits of a Group Death in Service cover for your employees include: Providing financial peace of mind Any lump sum payable to dependants is not subject to inheritance tax (based on the appropriate trust being deployed) Cost savings for a scheme versus providing individual life insurance policies Our team can work with you to arrange a suitable scheme that ensures your employees families and loved ones are protected should the worst happen. Our free consultation service will help you understand your options, responsibilities and what to do next. Key benefits A consultative approach to protecting your staff Access to wide range of specialist providers providing competitive options Holistic, technically detailed approach Able to provide Trust advice to mitigate potential tax liabilities 8

Relevant Life Tax efficient life insurance products allow smaller businesses to offer death in service benefits to their employees and company directors. We are highly experienced in advising on relevant life cover and the products available in the market. A tax efficient alternative to group life insurance Relevant life cover may be a more suitable, costefficient option for smaller businesses instead of group death in service cover, while attracting and retaining highcalibre staff by offering them a tax efficient package. Many small business owners would like to offer their employees life insurance, but find it challenging as group life insurance schemes can be expensive, especially if there are not many members of staff. Protean Risk also offers a suitable alternative in the form of Relevant Life Insurance, which is designed for companies too small for a group life scheme. Relevant Life is not only a useful perk for employees and directors, but can also offer generous tax benefits as it is a tax deductible business expense and is typically exempt from inheritance tax. It s important to note that Relevant Life policies must be written into a discretionary trust and eligible employees must be UK residents and employees of a UK based company. If you re a small business looking to obtain Relevant Life for your employees and directors, then get in touch with one of our dedicated specialists who can help you through your options. Appropriate for: UK Companies too small for a group life scheme High-earning employees who might exceed their pension lifetime allowance Members of group life schemes who want to top up their benefits above the provisions of their group scheme Company directors placing life cover in trust for their beneficiaries in a highly tax efficient contract 9

Group Critical Illness We can provide different levels of cover for your employees should they suffer a serious illness. Support your employees health when they need it the most 31% of employees rate group critical illness insurance in their top three employee benefits, along with health and life insurance (Source: Ellipse research, 2016) Serious illnesses, such as cancer or heart disease impacts thousands of people every year. While our Relevant Life insurance and Group Death In Service offers support in the event of a death of an employee, critical illness is also an emotionally distressing time for the person affected and their family and a lot more likely to happen. According to the Association of British Insurers (ABI), we are five times more likely to claim on a critical illness policy than a life insurance policy before the age of 65. This is why critical illness cover is typically more expensive. However, buying a Group Critical Illness policy to support your employees could prove invaluable, especially if you know that their families would struggle to make ends meet if they couldn t work due to a serious health condition. Different levels of cover are available, and we partner with our clients to put together Group Critical Illness protection suited to their employees needs at competitive premiums, which are also tax deductable as a business expense. Key benefits Provide the support your employees need if they become seriously ill Tax free lump sum payments to those affected by a critical illness, usually based on a multiple of salary Lump sum payments could be used for medical expenses, payment of outstanding mortgage or adaptions to the home (i.e. for wheelchair use) Major illnesses covered include: cancer, heart attack, stroke, and multiple sclerosis Other serious illnesses also covered, such as Alzheimer s disease, cardiac arrest, Creitzfeldt-Jakob disease, dementia, kidney failure, major organ transplants, motor neuron disease, and Parkinsons disease Additional support can also be provided, such as counselling or a personal nurse Different levels of cover available at competitive premiums Premiums are typically tax-deductible as a business expense Stand alone Critical Illness insurance can be purchased as a personal policy, or as an addition to key person insurance 10

Get in Touch Contact one of our team to arrange an initial discussion. We will take the time to understand your goals and can recommend a tailored solution to meet your business needs when it comes to employee benefits. Peter O Neill, DipPFS Account Director Peter is responsible for the development and implementation of employee benefit solutions. He has 23 years financial services experience and held a senior management position with Zurich Assurance for a number of years before joining the Protean Risk team. T: 020 3763 5349 E: peteroneill@proteanrisk.com Stuart Slater, DipPFS Account Director Stuart has worked within the financial services industry for over 10 years. Earlier in his career he developed relationships with key distributors for a number of life offices including Aegon and Zurich, before establishing himself as an independent financial planner. T: 020 3763 5344 E: stuartslater@proteanrisk.com Amy Monk, BSc ECO, Cert CII(FS) Account Manager Amy is responsible for implementing and renewing employee benefits for our clients. She has three years previous experience in the financial services industry, two of which as a specialist in income protection. Amy currently holds a Certificate in Financial Services with the Chartered Insurance Institute and is working towards further qualifications. T: 020 3176 8310 E: amymonk@proteanrisk.com For more information, please contact: Protean Risk Limited 81 Gracechurch Street, London, EC3V 0AU T: +44 (0)20 3763 5360 E: info@proteanrisk.com www.proteanrisk.com This publication is designed as a guide only and is not intended to offer advice. Protean Risk Limited is a registered Lloyd s Broker, authorised and regulated by the Financial Conduct Authority. Firm Reference Number 479839. February 2019