Ellipse Sick Pay Complete
Ellipse has discontinued its group income protection product, Intact, and replaced it with this new product for firms with up to 300 employees.
The plan provides an online absence management system, TeamSeer, to work alongside long term disability (income protection) insurance for employees.
TeamSeer is a cloud based application, which allows employees to record both sickness and planned absences (such as holidays). Ellipse’s case management team then receives an automatic notification when sickness absences reach a period of four weeks (or sooner in some cases). This enables early intervention and rehabilitation services to be provided as soon as possible.
The plan also includes a workplace support service, SupportMatters, which is provided by Workplace Options.
Comment: Research carried out by GRiD in 2014 found that only 6% of SMEs use an outsourced absence recording system of any kind, while only 15% have access to an employee assistance programme. Ellipse says that by offering such services it can offer ‘a more integrated and complete product solution than income protection alone’.
That makes sense, although it is disappointing to see that Ellipse has withdrawn its group IP plan and replaced it with this plan. Or is it? IP is changing, both in terms how much help it offers in sickness absence management, but also in the length of time benefits are typically payable.
Certainly, there is a trend towards shorter benefit payment periods and that in itself is recognition that in many cases someone can return to work, even with serious illness or disability issues (as the excellent Seven Families initiative is demonstrating so powerfully). IP is therefore in transition between the old fashioned ‘pay a cheque and go away’ attitude towards a more hands on approach that aims to provide much more practical help, with the financial traditional IP benefit as a long stop rather than the headline benefit. In other words, insurers are building their case that customers’ interests really are beginning to be put first (rather than what is best for the insurer).
Ultimately society should benefit from this evolving situation, as should claimants themselves, their families and their employers. The transition may not be particularly comfortable for some insurers and advisers and the new style products don’t yet look to be a complete solution in themselves but this plan warrants careful consideration, not least because recording absence is such an important part of any long term solution.
We have not seen pricing, but expect that the plan will be relatively inexpensive for most employers to implement.
Plus points: Sickness absence management system for SMEs; Triggers intervention from Ellipse’s trained claims team when necessary; Supplements rather than replaces the need for GIP.
Not so plus points: Replaces Ellipse’s GIP plan; Not every employer yet recognises the need for good sickness absence management systems; Relies on employees self-recoding accurately and in good time; Four weeks can be too late for some early interventions (although Ellipse says four weeks is a maximum).
Website: http://www.ellipse.co.uk.
Rating (max 10): Innovation: 8. Overall: 7. Silver
Tags: Other; Ellipse