Health Management & Wellness:

A Global Perspective

Carl Redondo | Marion May

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Welcome and Introductions

Carl Redondo

Global Benefits Consulting Leader, UK

15 years with Aon Hewitt in London, Seoul, Hong Kong and Shanghai

Helps multinationals and big locals with employee benefits issues around the World

Marion May

Senior Global Benefits Consultant, London

5 years with Aon Hewitt’s global benefits consulting practice

Develops and implements strategic health and wellbeing solutions for clients

Joining via Webex

Approximately 150 clients from around Europe representing major multinationals

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Agenda

1 Introduction – The Coming Crisis in Global HealthCarl Redondo

2 Global Healthcare Trends – Aon Hewitt SurveyCarl Redondo

3 Wellness TrendsMarion May

4 Absence ManagementCarl Redondo

5 Q & A

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The Coming Crisis in Global Health

Delivery of health insurance benefits globally is under major financial pressure

The reasons are as follows:

1. Populations are living longer— putting extreme financial pressure on social care

2. Medical Cost Inflation (MCI) is continuing to rise rapidly in most countries

3.Lifestyle risk factors are growing globally—the global burden of non-communicable disease is now greater than that of communicable disease

4. Workforces are aging in most countries (1–2 years every 5 years)

5. Major competitive pressure to expand scope of private health insurance benefits

6.Employers are coming under pressure to provide retirees with access to group health insurance in many countries

Costs of health insurance is increasing by 3% - 5% above GDP in most markets around the World

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Medical Trend Rates and Non-Communicable Diseases

Increases in year on year costs for members of EU

Source: European Commission Autumn 2013 Economic Forecast, Aon Hewitt 2013/4 Global Medical Trend Rate Survey

Measure 2013 2014

Inflation 2.0% 2.0%

Real GDP 0.4% 1.6%

Medical costs 6.2% 5.9%

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Source: Aon Hewitt 2013/4 Global Medical Trend Rate Survey

  Asia Pacific Europe Latin America Middle East/Africa

1 Respiratory 47% Cancer 60% Cancer 68% Respiratory 67%

2 Gastrointestinal 47% Mental Health 45% Respiratory 58% Diabetes 56%

3 Cancer 47% Diabetes 40% Diabetes 53% Cancer 33%

4 Infectious Diseases 33% Gastrointestinal 35% Prescription Drugs 42% Gynaecological 33%

5 Gynaecological 27% Gynaecological 25% Gastrointestinal 42% Accident 33%

Key causes of medical claims around the World

Aon Hewitt Healthcare Study

2011/12 Health Care Survey – Participant Profile

A total of 1,028 individuals participated in Aon Hewitt’s 2011/12 Global Health Care Survey. The participant profile by overall worldwide employee size is as follows:

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Health Strategy – Top 5 Desired Outcomes

Participants asked to select top 3 desired outcomes

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Health Strategy – Top 5 Challenges

Participants asked to select top 3 biggest challenges

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Health Strategy – Top 5 Priority Tactics

Participants asked to select top 3 tactics to achieve strategy

All are wellness related activities

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Reduce Expenses – Absence Management

Participants asked the metrics used to measure the impact of absence

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Participants asked what the components are of workforce health strategy

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Improve Workforce Health – Strategy Components

Improve Workforce Health – Key Tactics

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Improve Workforce Health – Future Trends

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Total Health Management – Integrating Wellness and Absence

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Wellness trends

Trends in Wellness

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Clear goal setting

Employers’ responsibility

Trends

Metrics and ROI

Global Wellness Solution

What do Recent Surveys Tell Us?

48% of employees said say stress negatively impacts their lives, and 17% say they get no support from their employer

– Canada Life Feb 2013

68% of respondents think their employer should take responsibility for their general health at work

– British Heart Foundation Jan 2013

After introducing health-related benefits,

83-89% respondents reported increased productivity, improved wellbeing and reduced sickness absence

– Aviva Dec 2012

78% of employers would consider contributing towards the cost of cancer screening for employees

– Helm Godfrey Jun 2012

45% of respondents said long-term absence is a big concern and 22% indicated that it affected the business financially

– Aviva Health Aug 2012

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Global Recognition of Employer’s Role

“The wealth of business depends on the health of workers.”

Dr. Maria Neira, Director, Department of Public Health and Environment, The World Health Organisation

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Definition of a Healthy WorkplaceA healthy workplace is one in which workers and managers collaborate to use a continual improvement process to protect and promote the health, safety and well-being of all workers and the sustainability of the workplace by considering the following, based on identified needs: • health and safety concerns in the physical work environment; • health, safety and well-being concerns in the psychosocial work environment including organization of work and workplace culture; • personal health resources in the workplace; and • ways of participating in the community to improve the health of workers, their families and other members of the community.

Definition of a Healthy WorkplaceA healthy workplace is one in which workers and managers collaborate to use a continual improvement process to protect and promote the health, safety and well-being of all workers and the sustainability of the workplace by considering the following, based on identified needs: • health and safety concerns in the physical work environment; • health, safety and well-being concerns in the psychosocial work environment including organization of work and workplace culture; • personal health resources in the workplace; and • ways of participating in the community to improve the health of workers, their families and other members of the community.

The Growing Role of the Employer

Responsibility should be shared equally by the

employee, employer, and the government

21%

The employer should be primarily responsible

14%

The employee should be primarily responsible

28%Responsibility should be

shared equally by the employee and employer

37%

Source: Hewitt’s 2010 Global Health Promotion Survey

0% see this as only a

government responsibility

Employers say they share responsibility for their employees’ health

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What are Employers Doing?

Percentages of Companies with Programmes to Combat Non-Communicable Diseases

Source: The Workplace Wellness Alliance. Delivering on Health and Productivity (2011) WEFSource: The Workplace Wellness Alliance. Delivering on Health and Productivity (2011) WEF

2013 2014

Incentives for Exercise 21% 35%

Physical Health 23% 42%

Stress Reduction 14% 32%

Anti Smoking 37% 74%

Anti Alcohol 42% 61%

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What are Employers Doing?

Programmes/Services Offered in 2012 Offered in 2013 Absolute Increase

Biometric screening 63% 71% 8%

Physical activity challenges 47% 53% 6%

Telephone health improvement coaching

46% 52% 6%

Nutrition programmes 31% 37% 6%

Stress reduction initiatives 29% 35% 6%

Source: Aon Hewitt 2013 Health Care Survey

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Goals - Why do Wellness?

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Employee engagement

Talent retention and

attraction

Improving productivity

Employer of choice

Reducing healthcare costs

(direct and indirect)

Reducing sickness / absence

Reducing presenteeism

Improving morale

Social corporate

responsibility

Global EAP/Challenge

A starting point Relatively low cost and

low risk Reasonably mature

marketplace Some programme

expansion possible through additional services

Solution driven by corporate; adopted locally

Lifestyle Focus

Primary focus is lifestyle behaviour modification (common: smoking cessation, nutrition, sleep, and exercise)

One-stop shop solutions are emerging - simplified administration

Solution driven by corporate – adopted locally

Health and Wellbeing Model

Broader philosophical view of health and wellbeing

Core components driven by corporate

Core programmes localised based on in country needs and risks

Significant emphasis on local programme expansion beyond the core

What might a Global Wellness Programme look like?

Generally, significant increase in interest among global companies and an increasing number are moving to action

3 Categories of Employers

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Wellness ROI

Impr

oved

Out

com

es

Impr

oved

Out

com

es Building Engagement

Building Engagement

Cost Reduction (indirect & direct)Cost Reduction (indirect & direct)

Hea

lth m

etric

s

Hea

lth m

etric

s

Productivity metricsProductivity metrics

Engagement m

etrics

Engagement m

etrics

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ROIROI

Absence Management

Total Health Solution UK – A Case Study

A specialist absence case management

service where the referred absence is

reviewed and actions are

recommended to enable the employee

to return to work at the earliest

opportunity

24/7/365 confidential helpline offering

lifestyle support and advice to

employees. Services include short term

counselling options and lifestyle support

services such as debt management,

legal information and child/elder care

services

A service providing clinical advice

and support to employers for

employees with health problems

that are impacting on work

performance

A specialist service providing

physiotherapy rehabilitation

treatments

A specialist psychologist led service for

stress related absences, providing

initial assessment and treatment

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An outsourced absence recording and

monitoring service, identifying absences for

early intervention, providing support and

advice to employees

What does Absence Management Deliver ?

Certainly:

Insight into health risks

Reliable absence data

Lower absence rates

Lower insurance premiums

Return on investment

Integrated view of health

Reference point for wellness/preventative campaigns

Potentially:

Information about reasons for absence

Improved employee engagement

Healthier behaviours leading to employee wellbeing both physically and mentally

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Conclusions

Why Focus on Health Management ?

Good for Employees Good for the Organisation

Lower retention and recruitment costs

Lower temp agency costs

Better Health & Safety record

Good governance

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Lower sickness absence

Lower sick pay

Lower long-term disability claims

Lower turnover

How Aon can Help?

Wellness:

Audit and strategy development

Implementation

Communication

Monitoring

Absence management:

Audit and strategy development

Implementation

Communication

Monitoring

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Q&As