0. Health Management & Wellness: A Global Perspective
Carl Redondo | Marion May

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2. 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

3. 1 2 3 4 5 Agenda Introduction – The Coming Crisis in Global Health
Carl Redondo 2
Global Healthcare Trends – Aon Hewitt Survey 3
Wellness Trends Marion May 4
Absence Management 5
Q & A

4. 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

5. Medical Trend Rates and Non-Communicable Diseases
Increases in year on year costs for members of EU
Measure
2013
2014
Inflation
2.0%
Real GDP
0.4%
1.6%
Medical costs
6.2%
5.9%
Source: European Commission Autumn 2013 Economic Forecast, Aon Hewitt 2013/4 Global Medical Trend Rate Survey
Key causes of medical claims around the World
Asia Pacific
Europe
Latin America
Middle East/Africa 1
Respiratory
47%
Cancer
60%
68%
67% 2
Gastrointestinal
Mental Health
45%
58%
Diabetes
56% 3
40%
53%
33% 4
Infectious Diseases
35%
Prescription Drugs
42%
Gynaecological 5
27%
25%
Accident
Source: Aon Hewitt 2013/4 Global Medical Trend Rate Survey

6. Aon Hewitt Healthcare Study

7. 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:

8. Health Strategy – Top 5 Desired Outcomes
Participants asked to select top 3 desired outcomes

9. Health Strategy – Top 5 Challenges
Participants asked to select top 3 biggest challenges

10. Health Strategy – Top 5 Priority Tactics
All are wellness related activities
Participants asked to select top 3 tactics to achieve strategy

11. Reduce Expenses – Absence Management
Participants asked the metrics used to measure the impact of absence

12. Improve Workforce Health – Strategy Components
Participants asked what the components are of workforce health strategy

13. Improve Workforce Health – Key Tactics

14. Improve Workforce Health – Future Trends

15. Total Health Management – Integrating Wellness and Absence

16. Wellness trends

17. Employers’ responsibility
Trends in Wellness
Clear goal setting
Trends
Employers’ responsibility
Global Wellness Solution
Metrics and ROI 17 17

18. 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

19. 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
Definition of a Healthy Workplace
A 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.

20. The Growing Role of the Employer
Employers say they share responsibility for their employees’ health
0% see this as only a government responsibility
Source: Hewitt’s 2010 Global Health Promotion Survey

21. What are Employers Doing?
Percentages of Companies with Programmes to Combat Non-Communicable Diseases
2013
2014
Incentives for Exercise
21%
35%
Physical Health
23%
42%
Stress Reduction
14%
32%
Anti Smoking
37%
74%
Anti Alcohol
61%
Source: The Workplace Wellness Alliance. Delivering on Health and Productivity (2011) WEF

22. 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%
Nutrition programmes
31%
37%
Stress reduction initiatives
29%
35%
Source: Aon Hewitt 2013 Health Care Survey

23. Improving productivity Employee engagement
Goals - Why do Wellness?
Improving morale
Improving productivity
Employee engagement
Talent retention and attraction
Reducing sickness / absence
Reducing healthcare costs (direct and indirect)
Employer of choice
Social corporate responsibility
Reducing presenteeism 23

24. Health and Wellbeing Model
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
Global EAP/Challenge
Lifestyle Focus
Health and Wellbeing Model
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
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
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

25. ROI Health metrics Engagement metrics Productivity metrics
Wellness ROI
Improved Outcomes
Health metrics
Building Engagement
Engagement metrics
ROI
Productivity metrics
Cost Reduction
(indirect & direct)

26. Absence Management

27. Total Health Solution UK – A Case Study
An outsourced absence recording and monitoring service, identifying absences for early intervention, providing support and advice to employees
A specialist psychologist led service for stress related absences, providing initial assessment and treatment
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
A service providing clinical advice and support to employers for employees with health problems that are impacting on work performance
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 specialist service providing physiotherapy rehabilitation treatments

28. 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

29. Conclusions

30. Why Focus on Health Management ?
Good for Employees
Good for the Organisation
Lower sickness absence
Lower sick pay
Lower long-term disability claims
Lower turnover
Lower retention and recruitment costs
Lower temp agency costs
Better Health & Safety record
Good governance

31. How Aon can Help? Wellness: Audit and strategy development
Implementation
Communication
Monitoring
Absence management:

32. Q&As