1. Putting a value on corporate health insurance: getting your client’s attention Hosted by Chris Rolland, Director, Legal & General Healthcare This is not a consumer presentation. It is intended for Professional Financial Advisers and should not be relied upon by private customers.

2. Oct 2006 Dr Thom Van Every Chief Medical Officer Putting a value on corporate health insurance: getting your client’s attention

3. Oct 2006 What is the value of health insurance? Employee Benefit Less Sickness Absence Value = + Legal / Compliance Tax + 94% companies did not calculate value of health cover 1 Source: 1. Employee Benefits Survey March 2006, survey of 383 companies

4. Oct 2006 How do we measure employee benefit? –Difficult –Staff turnover? Feedback? Recent Employee Benefit survey 1 (68%) companies offer it –2 nd most popular benefit offered Employee Benefit Source: 1. Employee Benefits Survey March 2006, 68% of companies offered health cover, 383 companies sampled

5. Oct 2006 £400-500 per year per employee 1 £144 per day lost 2 3.1%-5.4% of payroll 3 28.8m 2 working population £13billion costs per year to employers Sickness Absence Source: 1.Office of National Statistics, 2. Active Health Partners. 3. Watson Wyatt Healthcare, 2001

6. Oct 2006 Reasons for Absence, time away Source: PatientChoice Limited, 15k primary school staff Sickness Absence Stress 26% Medical 53% Bereavement 1% Maternity Leave 6% Accident 10% Other 2% Maternity Related 2%

7. Oct 2006 £400-500 per year sickness absence cost per employee Around 80% medical related At least 60% medical related likely PMI covered Therefore approx £200 per year of overt sickness absence causes addressed by ‘PMI-able’* cover Sickness Absence * Assuming psychiatric care and stress not covered

8. Oct 2006 Health & Safety guidelines Duty of care to employees Business expense Legal/Compliance/Tax

9. Oct 2006 How to position PMI: know your customer Employee Benefit Sickness Absence Company size ? Small Large

10. Oct 2006 Addressing at least a £13billion problem –An employee benefit –A sickness absence tool –A health and safety tool Minimum of £200 per person per year Summary: the value of health insurance

11. Any Questions?