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4 Key Considerations For HR Professionals Amid Insurance Market Growth

In the first half of 2024, Singapore’s life insurance industry reached a new peak, with premiums amounting to S$2.77 billion. For HR professionals, this trend is more than just a headline—it’s a cue to reassess and enhance employee benefits to better align with the evolving needs of their workforce. 

Understanding the Growth in Life Insurance 

The rise in life insurance premiums suggests that more Singaporeans are prioritising financial security for their families. This trend highlights a growing expectation among employees for comprehensive benefits packages that include robust life insurance options. As more individuals invest in personal policies, there’s an opportunity for employers to enhance their offerings to attract and retain top talent. 

HR Trends in Employee Benefits 

The growth in life insurance is part of a broader shift in employee benefits, where security, flexibility, and personalised options are increasingly valued. Here are some key HR trends to consider: 

1. Personalised Benefits: Employees expect benefits that they can tailor to their own needs. This could mean offering different levels of life insurance coverage or a range of insurance options, such as critical illness or disability insurance. 

2. Wellness and Mental Health: Employee wellness, including mental health, is becoming a priority. Life insurance is one element of a broader wellness programme that might also include mental health support and stress management initiatives. 

3. Flexibility and Remote Work: Flexibility is now a top priority for many workers. As remote work becomes more common, HR professionals need to ensure that benefits packages reflect this new reality. Offering flexible benefits that can be tailored to individual employee needs is increasingly important, as it allows employees to choose the coverage that best suits their personal and family situations. 

4. Employee Education: As benefits packages become more complex, employee education is crucial. HR professionals are responsible for ensuring that employees understand their benefits and how to use them effectively. 

How HR Can Respond 

1. Enhance Existing Benefits: With the life insurance market on the rise, HR teams should consider enhancing their current benefits offerings. This might involve increasing coverage or offering additional types of insurance. 

2. Communicate the Value of Life Insurance: HR can help by communicating the importance of life insurance and how it fits into overall financial wellness. Clear messaging and educational resources can make a significant difference. 

3. Leverage Life Insurance as a Competitive Advantage: In a competitive job market, a robust life insurance package can set your company apart. HR professionals can highlight this benefit as a key part of a comprehensive package that shows commitment to employee well-being. 

4. Stay Informed and Adapt: HR teams need to stay informed about industry trends and be ready to adapt their benefits packages accordingly. This involves regular reviews, close contact with providers, and feedback from employees. 

Conclusion 

The growth in Singapore’s life insurance industry signals a shift in employee expectations. By staying attuned to these trends and enhancing benefits packages, HR can use them to attract, retain, and engage top talent. Offering tailored insurance solutions that provide security, flexibility, and peace of mind can help create a workplace where employees feel valued, secure, and supported. 

By Margaret Ferté, Chief Executive Officer, Cléma Risk Solutions 

Source: Cléma Risk Solutions