Harnesssing group insurance data: The Power of statistics

Group insurance firms can enhance their client-perceived value by leveraging statistics obtained from their group insurance plans, says Jonathan Bolduc, a principal partner at Quebec-based firms BCH Collectif and Orchestro assurances et rentes collectives. Bolduc is also the president of the life insurance firm, Pro-Sphère. 

Employee Assistance Programs (EAPs) are, in his view, a vital source of these statistics. He notes that data on the use of EAP services, combined with pharmaceutical consumption statistics, provide valuable insights to employers. 
“The usage data for psychological services or medication that is available on the insured group are a treasure trove of information about the general health status of a company’s employees,” he says. For instance, an increase in the use of antidepressants in a group with few disability cases could signal an emerging issue, manifesting as presenteeism and eventually absenteeism. 

A better multiple 

“That’s why controlling the information is crucial. Any firm operating with this perspective will inherently add more value, as it doesn't just justify its income through negotiations with the insurer,” Bolduc points out, referring to the price negotiations at the time of renewing a client’s group insurance contract. “The firm also justifies its income through its work, through the relevance and depth of information provided to key employees like the human resources director or accounting services, to anticipate upcoming costs,” Bolduc says. 

He elaborates that these employees can implement prevention strategies to sidestep hidden costs. For instance, a company could increase communication with employees about health and the phenomenon of presenteeism. 

Bolduc believes that the added value of harnessing plan data can result in a longer-lasting relationship with the client. In addition, the longevity of the relationships he maintains with his clients can in turn add more value to the firm. “A firm looking to sell will have a better multiple if the transition to the buyer is properly managed afterward. The multiple will be higher because there is no turnover. The selling firm is not constantly seeking new clients,” he explains. 

Confidentiality 

 Employers are striving to improve, as they all face challenges with a scarce and continuously shifting workforce — Jonathan Bolduc 

Bolduc acknowledges that whether to share data with their broker depends on the client's willingness. However, he observes a strong trend towards sharing: “Employers are striving to improve, as they all face challenges with a scarce and continuously shifting workforce.” 

Few employers resist sharing data, he notes, because the data remain confidential and do not contain personal information. “We only know whether the person is an employee or a dependent,” says Bolduc. He considers this information crucial for prevention, as issues affecting a dependent will inevitably impact the employee. “They won’t be fully present at work,” he adds. 

Bolduc specifies, however, that data confidentiality is better safeguarded when originating from groups of more than 50 employees. According to Bolduc, groups of this size provide more comprehensive health information about the company. 

Not all employee assistance programs consent to share their data, Bolduc warns. Nonetheless, he relies on long-established practices at BCH and a privileged partnership with GreenShield, which enables him to access these valuable statistics.