The health crisis that we have been experiencing since March 2020 has had consequences for life insurance schemes. However, Verlingue’s analysis of its portfolio shows that the structural drift observed since 2018 has not accelerated to date, as might have been expected.
A ONE-OFF INCREASE IN CONTINGENCY RISK IN 2020
The health crisis in 2020 was marked by an increase in the number of work stoppages covered by companies and insurance organisations.
Indeed, the health context led to the implementation of exceptional work stoppages for childcare, for vulnerable people and their relatives, and resulted in the compensation of new stoppages.
Source: Verlingue portfolio 2018 – 2021 – DSN data – Analysis carried out on a constant scope of companies over the period studied.
NB: Verlingue’s portfolio is currently made up of 750 companies and 500,000 employees
Even if we can observe a regular increase in the rate of absenteeism in companies, the health crisis does not seem to lead to an acceleration of the structural adjustment of the risk.
Indeed, over the period observed, we can see that, excluding the year 2020, the number of absent employees remains stable.
Similarly, over the period observed, we can see that the frequency (number of times an employee is absent) remains stable.
Lastly, the average duration of absence observed in 2020 was longer than in previous years. It tends to decrease in 2021 while remaining higher than in 2019.
In 2020, the return to work was slower due to the health context observed.
In the same way that we have not noted any deterioration in the risk of life insurance, we have not noted any deterioration in the risk of death or disability in our portfolio.
Source: Verlingue Portfolio 2018 – 2020 – Life insurance management data as of 30/06/N+1
ABSENTEEISM IS NOT A NEW PHENOMENON AND IS TAKEN CARE OF IN SUPPORT OF OUR CUSTOMERS
As mentioned above, absenteeism is constantly on the rise in companies, which requires them to carry out an assessment enabling them to establish an action plan for prevention and return to work. This is because it is long periods of absence that have the greatest impact on the cost of insurance.
Beyond this quantified assessment, it is necessary to be able to identify needs through employee surveys that measure the perception of all employees on the subject.
Verlingue has been involved in this issue for several years and continues to invest in order to provide better support to companies and help them reduce their risks. Verlingue has an Actuarial team (20 statisticians) which carries out very precise analyses of absenteeism data (30 to 80 indicators) in order to dialogue with HRDs and propose preventive actions and support for a return to work.
In addition to absenteeism, it is the risk of work stoppage as a whole that needs to be managed.
Developed with its Digital Factory teams and its expert customers, the Easy@cess extranet is a management tool for Social Protection schemes, unique on the market. It allows you to declare and manage work stoppage records in a few seconds. It also has monitoring indicators, including a mobile version.
A BOOMING MARKET THAT WILL NEED SUPPORT
Insurers are faced with a problem of financing their provisions, which often results in an increase in premiums.
Verlingue has a role of transparency and commitment to both parties (insurer/customer) and supports companies through its analyses in order to project risks and anticipate the conditions for contract renewal.