Case study | Employee benefits - Private Medical Insurance

Driving benefits efficiency and cost savings

How NFP’s expertise helped a global tech leader switch PMI providers, securing a better service and over £340,000 in savings

Client overview

Business type

Global technology solutions company

Locations

Employees

1,800+ UK employees
100,000+ global employees

Key outcomes

Switched client to a more suitable PMI provider, despite tightly client-set boundaries
Our brokerage helped the client save £150,000 on switching to this new provider
On renewal with new provider (after 2-year rate guarantee) our ‘3 rounds’ negotiating process saved the client an additional £190,000

The challenge

Firstly, the client had experienced relatively poor service with their then current PMI provider, so they came to us to help them switch. Secondly, they wanted to ensure that, on renewal with their new provider, any costs increases would be managed as effectively as possible.

As their broker, our key challenges were:

Risk management (particularly internal processes for insurer changes) is key to this client’s business, which put even more pressure on us to achieve a good outcome
The client had set very tight boundaries for provider selection, which could have presented further complications
With the rate that benefits costs are rising, managing their increase at renewal may have proved especially difficult

Tania Parmar
Client Relationship Director

The solution

Our process started by understanding the client’s needs and goals:

We conducted a desk-based product review and a provider presentation day on site
This helped us identify a provider the client wanted to target to achieve the required terms
Our brokerage skills generated significant savings compared to the original provider, using market rates to drive a lower cost and a 2-year guarantee period from the preferred insurer

On renewal, to help manage any cost increases we then:

Assessed the market with a further market test and brokerage exercise
Used our standard ‘3 rounds’ negotiating process to secure a further significant saving for the client at renewal

The results

For their business

£150,000 premium reduction from provider switch

Delivered a substantial reduction in the preferred PMI provider premium following the market review and switch.

£340,000 total saving secured

Achieved an additional £190,000 cost reduction at renewal, bringing total savings to £340,000.

Stronger strategic alignment

Selected a provider better aligned to the client’s strategic objectives, enabling more effective support for employee wellbeing.

For their people

Reduced Benefit-in-Kind tax exposure

Lower premiums resulted in reduced P11D values, decreasing the tax employees paid on benefits.

More affordable dependent cover

Reduced premiums lowered the cost for employees choosing to add dependents to the group PMI plan.

Improved benefit understanding and utilisation

Delivered targeted NFP benefit communications to ensure employees understood and effectively used the PMI benefits available to them.

A benefit provider not giving you the service or oversight you expect?

From group PMI to group income protection and beyond, our team can help you switch to a provider that better aligns with the needs of you and your people. Get in touch with our team today – we’d love to have a chat about your goals and how we can help you achieve them.

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