Ageing and absenteeism: impact on the insurance preferences of employers

“Ageing workforce leads to significantly higher monthly premiums for absenteeism insurance”

This study investigated the impact of the ageing workforce on the own risk employers want to take and premiums they are willing to pay for absenteeism insurance due to long-term illness. Data was obtained from a stated preference experiment combined with a survey realised in collaboration with insurance company ASR among a large group of employers. Employer’s age, the age structure of the workforce and whether the employer thinks older employees are likely to become ill influence the willingness to pay more premium.

Key Takeaways for the Industry

• As there is a limit to how much premium employers are willing to pay, an optimal balance is needed between an attractive price and an optimal service.
• Evidence-based policy is needed to limit the influence of employer age on the willingness to pay premium.