Research from the U.S. Social Security Administration shows that about one in four 20-year-olds will become disabled before reaching retirement age, highlighting the critical need for disability insurance to protect employee income. Additionally, a 2023 LIMRA study found that over half, 53% of adults who have life insurance only through their employer believe the coverage amount is sufficient to protect their families. This highlights the critical role disability and life insurance plays within employee benefit for a diverse and evolving global workforce.
As companies expand internationally and build global teams, disparities in insurance benefits across countries can jeopardize workplace fairness and leave employees without the protection they deserve. Addressing these disparities is essential to promote equity in the workplace and to ensure every team member feels valued regardless of location.
In this blog, we will explore how promoting equity through disability and life insurance benefits can establish a consistent safety net that fairly supports global teams.
Life and disability cover is more than a safety net; it's a commitment to employee protection, especially for international employee benefits.
Key benefits of life and disability insurance :
Achieving equity in the workplace involves more than equal treatment; it means addressing the unique needs across regions and roles. For multinational companies, effective benefit strategies include:
Embedding workplace equity in these strategies creates a culture of inclusivity and belonging for all team members.
Despite their best efforts, multinational organizations often face equity barriers such as:
These barriers may lead to uneven protection for employees across regions, undermining principles of equity and fairness in the workplace and impacting morale. To address these barriers, organizations should:
Insurance companies can effectively address uneven protection for employees across regions by offering international life and disability products that bridge the gap between local coverage possibilities and global standards. These products are designed to provide consistent and comprehensive protection, ensuring that employees receive equitable benefits regardless of their location. By tailoring solutions to meet both local regulatory requirements and international best practices, insurance providers can harmonize coverage levels, thereby enhancing employee security and satisfaction. Additionally, implementing a centralized management system for these products allows for streamlined administration and monitoring, ensuring that any disparities in protection are promptly identified and addressed.
Thomson Reuters, operating in 90 countries, utilizes multinational pooling for risk benefits like life and disability insurance. This approach ensures:
Their example demonstrates that with innovation and commitment, fairness in the workplace and workforce protection can be realized, even across borders.
Employers have a duty of care to deliver inclusive and equitable insurance benefits that support employee physical and financial wellbeing on a global scale. This responsibility extends beyond compliance with local laws to actively ensuring that all employees have access to meaningful disability and life insurance coverage.
Inclusive employee benefits consider:
By prioritizing this duty of care, organizations can:
Global insurance frameworks are key for delivering life and disability cover that is:
Integrating global insurance with life and disability benefits ensures employees receive comprehensive protection and support throughout their careers and in times of need. Companies that leverage these global benefits demonstrate a proactive approach to managing international employee benefits, reducing disparities, and promoting fairness across their entire workforce.
To truly close the equity benefits gap, businesses must prioritize fairness in their overall benefits strategy. This means continuously evaluating and adapting employee benefits to meet the evolving needs of a diverse global workforce.
Best practices for prioritizing fair employee benefits include:
A benefits program designed with equity and fairness in the workplace at its core supports wellbeing and strengthens your employer brand.
Learn more about promoting equity through life and disability insurance and explore Allianz Partners’ Business Hub for global employee benefits solutions.
Michael Scheu is a seasoned leader with a wealth of experience in Finance, Operations, Governance, and Digital Solutions. As the Head of Products and Solutions, DM & EB at Allianz Partners, Health, he oversees the development of international solutions within the Global Employee Benefits segment, proposition management for the IPMI Partnership Model and Underwriting of Employee Benefits programs. Michael's expertise is particularly focused on the international lines of business Life and Disability, where he leverages his deep understanding of financial and operational strategies to deliver innovative and effective solutions to multinational corporates. His career is marked by a commitment to excellence and a proven track record in leading complex projects and teams to success.
