January 31, 2018 09:45
Photo : Freepik
An algorithm developed by RBC Insurance leads the insurer to provide that the rates of incidence of long-term disability (LTD) will be 4.7 per cent higher in 2018 than in 2017, due to the strengthening of the canadian economy.
According to the study that was conducted by RBC Insurance, with the help of its algorithm, the increase in the incidence of long-term disability in group insurance plans is related to growth of the gross domestic product (GDP).
«In a period of GDP growth or economic growth, there has been an increase in the incidence of claims for benefits LTD. Conversely, when GDP falls, the incidence of claims are declining, » says the insurer.
Important stress mental or physiological
The insurer believes that a situation as difficult or uncertain will fear for job security and efficiency, which cause severe mental stress or physiological workers. As the economic outlook improves and as the GDP increases, the workers can start to feel more reassured, » he adds. The stress and anxiety accumulated, can then feel their effects, which makes workers more likely to succumb to disease and be absent from work, to recover.
At the beginning of 2017, the model has provided a successful increase in the incidence of long-term disability compared to 2016. This prediction has been pretty close to the real rate, according to RBC Insurance.
The tool estimated the LTD insurance collective RBC Insurance can the insurer help the company manage the costs related to claims for benefits-long term disability. It can also help them to retain their employees, to provide for a sufficient number of staff during critical times and to assist their employees when they need it the most.
«Canadian companies have spent $ 7.5 billion for the LTD coverage in 2016, which represents the third largest expenditure for the group insurance plans after the health insurance and dental care. The knowledge that the incidence rate of long-term disabilities is expected to increase can help companies manage these costs, to support their employees and to ensure the smooth operation of their activities, » said John Carinci, vice-president and head of operations and client experience at RBC Insurance.
Put the emphasis on the EAP
In a period of economic growth, RBC Insurance advises businesses to put more emphasis on the employee assistance programs (EAP), and provide enough staff to absorb an increase in the requests for benefits.
The insurer suggests that you also choose a group plan that allows employees to receive benefits when they return to work part-time. Finally, the employer will communicate to the employees the measures to help return to work as the financial planning and rehabilitation.