EXCLUSIVE: QVC has reduced its group income protection (GIP) costs by 63% over the past three years.
The home shopping channel, which has 2,000 employees, had historically provided full-term GIP for the 600 members of its defined contribution (DC) pension scheme.
It consulted with Towers Watson’s healthcare and risk consulting practice to determine whether it should change the design of its GIP because it was concerned with the ever-increasing cost of providing the benefit.
It launched a limited-term GIP product, which is still linked to its pension, in order to control costs. The new product also includes a five-year intervention and rehabilitation service.
During the first three years of the five-year period, QVC has reduced its group risk costs by 63% and has increased employee awareness of the benefit.
Both GIP products and the rehabilitation service are provided by Unum.
Steve Edwards, senior consultant at Towers Watson, said: “QVC recognised the importance of maintaining valuable ﬁnancial support for its employees during a long-term disability, but was keen to control costs while still taking advantage of the early intervention and rehabilitation services now available.
“Towers Watson worked with QVC to deliver a refreshed beneﬁt design, which delivered these advantages, while reducing existing insurance costs by 63%.”