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Businesses are being warned that an ageing workforce will increase insurance premiums in the coming years, with company car use being a core area for attention.
A one-year rise in the average age of a firm's employees could add 7-10% to insurance prices, according to Punter Southall Health & Protection Consulting.
With more than two million people expected to be in work past 65 by 2022 - more than double the current 870,000 - John Dean, PSHPC sales and marketing director, said: "Income protection typically stops at 65 - or State Pension Age. To extend cover up to 70 could add another 20% to premiums."
"Firms need to decide quickly whether they insure their staff beyond the SPA minimum, and what the cost and staff communication implications of this are. Firms must do this to plan their future costs because equality laws prevent them from providing older workers with less cover."
And according to analysis from PSHPC's new HR system Gladis, a self-serve platform that reduces the employer risk of managing protection insurances for employees, businesses are unaware of the impact this could have to their protection insurances costs.
Dean added: "Insurance premiums are linked to the average age of a workforce. With increasing numbers working beyond what used to be 'retirement age' even an increase in average organisational age by one year could raise premiums by 7-10%. Gladis knows all the rules and can model what might happen."
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