ABI: Private medical insurance for employees 'beneficial' for small businesses

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ABI: Private medical insurance for employees 'beneficial' for small businesses

Fri 20th Jun 2008

Small businesses could benefit from providing private medical insurance to their employees, the Association of British Insurers (ABI) said today.

Spokesperson Jonathan French said that losing staff to long-term sickness would hit a small company "harder" than a large one.

While acknowledging the cost of cover, he said there were plenty of providers dealing with the small business sector who could offer "appropriate and affordable" packages.

Mr French said that more companies were choosing to insure employees privately because it helped keep staff absence through sickness or injury to a minimum.

He also said that it was seen as a "tool for the recruitment and retention of staff."

ABI figures show that the number of people covered by private medical insurance has broken the six million mark for the first time in five years.

The government's Working for a Healthier Tomorrow report into health and wellbeing in the workplace found that sickness costs the UK £100 billion a year – enough to run the entire NHS.

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