Allaero Limited – Group Private Medical Insurance

Allaero’s commitment has always been to provide a reliable and competitive parts support service to the widest range of corporate and private aircraft owners and operators 24 hours a day, every day of the year. Their service extends beyond just stocking parts through to ‘one stop shop’ sourcing to inventory consignments.

As a family run business that is soon to be managed in its entirety by the 2nd generation of the family, the business has various Employee Benefits in place to help support a comprehensive total reward strategy to help attract and retain the best talent. These benefits include:

• Workplace Pension, with contribution levels exceeding minimum legislative requirements
• Group Life Assurance
• Employee Assistance Programme (EAP)
• Group Health Cash Plan

Although advisers to the business across all the above benefits, we were approached by Allaero in June 2021 to review another benefit that is in place for the Directors, namely a Group Private Medical Insurance policy. We were asked to review this policy to check the competitiveness of the existing insurer’s proposed renewal terms.

Outcome of our Review

After being approached by Allaero to undertake this review only 2-3 weeks in advance of thew renewal date, we:

• Arranged for Allaero to sign a letter of authority which allowed us to approach the incumbent provider to collect information on the existing plan
• Held a discussion with Allaero to provide an overview of the current scheme structure and highlighted areas that the business could address to potentially reduce the cost of the proposed premiums without reducing cover levels. An example of one area discussed was around how the membership could be repositioned and presented to the provider so that the employer could take advantage of how lower premiums are attached to lower age spouses within the scheme.

Based on the considerations raised in our meeting, Allaero confirmed they wished to work with us and for us to further investigate the areas raised and conduct a full market review for this policy.

Following our appointment, we:

• Arranged for Allaero to sign a letter of authority which transferred the management of this plan into our agency.
• Once in our agency, we approached the rest of the Group Private Medical Insurance market to determine whether the premiums proposed by the incumbent provider were reasonable.
• The market feedback received suggested that the premiums were above the market rate and upon receipt of the market feedback we presented this feedback to the incumbent provider who, whilst not matching the terms from the market, reduced their proposed premiums significantly.
• Upon receipt of the feedback from the incumbent provider, we prepared a report to Allaero which recommended that they accept the offer made by the incumbent provider and renew with them on the improved terms received. These terms included the slight change in how the membership was positioned to the provider.

It was a pleasure to undertake this work on behalf of Allaero and even more of a pleasure to use our expertise to reduce the proposed premiums from £23,000 per annum down to £14,500 per annum. A saving of £8,500 which in percentage terms is 37%.

Whilst any review cannot guarantee saving of these sorts of figures every time, it does show the benefit of a review being undertaken and the potential saving that can be made without changing the level of cover provided.

How can we help

Wingate can provide a free, no obligation of any employer’s complete employee benefit offering. Further details about our review service are detailed in our short 2 minutes video which can be found here.