Amid the crowded UK insurance market, the Financial Conduct Authority’s latest value report highlights a clear standout: Health Cash Plans (HCPs). These plans return more of customers’ premiums through claims than any other UK insurance product. But as Paycare CEO Ant Burns explains, their true value goes far beyond the numbers.
Why Businesses Are Rethinking Insurance
UK businesses are under pressure like never before. Leaders are juggling multiple priorities, driving productivity, managing costs, supporting employee wellbeing, and creating a workplace culture that attracts and retains talent.
Traditionally, insurance was seen as a safeguard for employees. Today, forward-thinking companies are treating it as a strategic investment, one that delivers measurable returns for staff, strengthens workplace culture, and supports the wider business.
But with so many options, from personal accident and critical illness to dental and private medical insurance, where should employers invest? Increasingly, the evidence points to Health Cash Plans.
More Than Just Numbers
According to the FCA, Health Cash Plans deliver the highest claim returns of any UK insurance offering. But their real value lies in their proactive approach.
“Unlike reactive insurance products that only cover costs when something goes wrong, Health Cash Plans support employees’ everyday healthcare needs,” explains Ant Burns. “They provide access to routine dental check-ups, optical appointments, physiotherapy, and a whole range of treatments that keep people healthy, engaged, and performing at their best.”
Prevention Pays
A well-designed Health Cash Plan is built with prevention in mind, helping to limit long-term absence, a major challenge for SMEs. Think of it as the Swiss Army knife of employee benefits: affordable, versatile, and always evolving.
The best providers continually refine their products to meet changing needs and supply communication tools to boost engagement, something smaller businesses often lack the time or resources to manage themselves.
The Business Case
Minor health concerns may seem insignificant, but they quickly add up, costing UK businesses billions in lost productivity each year. By enabling employees to access preventive care early, Health Cash Plans help reduce absence, maintain productivity, and foster a motivated, engaged workforce.
They also integrate seamlessly into business processes, covering costs like DSE eye tests, providing GP and mental health support, and even allowing PMI excesses to be reclaimed. Some plans include personal accident cover as standard, strengthening protection across the board.
Affordable and Accessible
For SMEs, the financial benefits are hard to ignore. Many plans start from just £4–£5 per employee per month, making them an accessible, high-impact way to demonstrate care, enhance retention, and deliver everyday value without significant costs.
A Strategic Advantage
Investing in employee health doesn’t just pay off internally, it strengthens a company’s reputation, showcasing responsibility, trustworthiness, and genuine care.
Organisations that place wellbeing at the heart of their strategy will be the most resilient in today’s evolving business landscape. For SMEs navigating tight budgets, talent retention challenges, and rising expectations, Health Cash Plans offer a smart, effective solution, turning everyday health support into a strategic advantage.
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Paycare supports the health and happiness of the UK through a range of Health Cash Plans designed to ease financial pressure and promote proactive wellbeing. As a not-for-profit, we reinvest into communities, meaning our Policyholders positively impact themselves, their families, and wider society too.