By: Herman Lombard, founder and Executive Director of African UnityEvery company wants to be able to attract and retain top talent, and many believe that paying top dollar is all it takes. But increasingly, this is not the case as employees look for a package that includes protection for themselves and their loved ones should things go wrong.For companies, a happy and satisfied staff complement makes for improved productivity, greater loyalty, and a positive effect on both customers and the bottom line.Herman Lombard, founder and Executive Director of African Unity believes that by providing benefits that are meaningful, companies, are able to demonstrate their care for the wellbeing of their employees.“In times of trauma, like the death of a family member or the bread winner, the family needs to know that they can rely on their employer for assistance. By insuring the benefits through an insurance company there is peace of mind”, he says.Lombard explains that several factors are taken into account when determining the correct price for group cover for an organisation, irrespective of the size. These include, whether the group is taking out insurance for the first time or whether they are reviewing their existing cover.Lombard adds that for a new group, the use of actuarial quoting engines; mortality rates; industry norms, and the like are taken into account to determine the price. These factors are then managed over time. For an existing group, the claims experience over a specific period will be reviewed and taken into consideration.Whether the industry is high-risk or not, costing models can be tricky. Gathering information on past claims is an important part of the process to ensure that the underwriter is able to provide the cover at the price it has determined.Accidents can happen at any time and to anyone. No matter how much you try to avoid them. Sports injuries, tripping and falling or car accidents happen to anyone. South Africa has a particularly poor record where it comes to road traffic accidents, with an average over 40 people a day being fatally injured and 20 being left permanently disabled[i]. According to the World Health Organisation, the rate of road traffic fatalities in the African Region remains the highest in the world with South Africa being a significant contributor to this grim statistic.Lombard explains that accidental death and injury cover is a combination of life and disability cover that pays out in the case of injury with admission to hospital, disability or death from an accident. Payment is made either in the form of a lump sum or reimbursement for out of pocket expenses.“By choosing to offer this cover to employees, the employer is making financial provision for their employees in the event of an accident and, in the process, shielding their loved ones from possible financial ruin”, he points out.Lombard cautions, however, that there are exclusions to this cover and explains that, typically, the exclusions would include, injury or death caused by any unlawful act; self-inflicted injury; death or injury due to high-risk pursuits; non-accident related injuries, drug abuse, suicide and non-accident related injuries.Accidental death and injury cover offered to employees as part of the larger employer benefits package is more affordable than if the employee were to purchase this cover as an individual. Lombard explains that this is because buying cover for all employees through a provider on a “wholesale” basis costs less per employee than it would if they were to buy a policy as an individual.“We believe that it is imperative for employers to provide benefits for their employees regardless of the sector. By providing access to protection like funeral cover to bury a loved one, or accident insurance when life deals an unexpected blow, employees are showing they care and at the same time nurturing loyal and productive employees”, concludes Lombard.