By Daniel Morgan-Williams, Founding Director of Visualise Training and Consultancy
Introduction
Income protection has traditionally been seen as a reactive product. An employee becomes ill or disabled, a claim is made, and the insurer pays out. For many, this is the end of the story. But what if income protection could be more than a safety net? What if it could actively help people return to work sooner, reduce long-term claims, and even prevent claims in the first place?
This article explores why insurers must invest in workplace adjustments, particularly for sensory disabilities such as visual impairment and hearing loss. It introduces the concept of the “Adjustment Dividend” — the tangible financial, reputational, and human return on investing in workplace support. Rather than accepting long-term claims as inevitable, insurers can transform outcomes by making relatively small interventions at the right time.
The Missed Opportunity
Every year, thousands of employees enter the income protection system not because they are incapable of working, but because they lack the right tools to continue. Sensory disabilities are a prime example. Around 250 people begin to lose their sight every day in the UK, and hundreds more develop hearing loss. Many of these individuals are skilled, experienced, and motivated to work — but without the proper adjustments, their careers stall and claims drag on.
Too often, insurers assume that paying out a claim is the extent of their duty. Yet, this reactive model overlooks a powerful opportunity: helping claimants return to work. By investing in adjustments early, insurers can save money, improve outcomes, and enhance their reputation as organisations that enable independence rather than reinforce dependency.
The Financial Case: The Adjustment Dividend
At the heart of the argument is cost. A workplace assessment and the necessary adjustments for an employee with sight or hearing loss typically cost less than £1,000. By contrast, a long-term income protection claim can cost tens of thousands of pounds over several years.
The “Adjustment Dividend” is the return generated by proactive investment. By funding or commissioning workplace assessments, insurers can:
- Reduce the length of claims by enabling earlier return to work.
- Prevent claimants from entering long-term absence in the first place.
- Lower the overall cost of payouts while improving customer outcomes.
This dividend is not only financial. It also strengthens brand reputation, builds customer trust, and positions insurers as leaders in innovation. In a competitive market, these are advantages no provider can afford to ignore.
Case Study Comparisons
Consider two fictional but realistic scenarios.
Emma, an experienced administrator, begins to lose her vision. Her manager refers her to Access to Work, but with waiting times exceeding nine months, nothing happens quickly. She struggles, becomes stressed, and eventually goes on sick leave. Her claim has been ongoing for several years, costing her insurer more than £40,000.
By contrast, David, a call centre worker with sudden hearing loss, is referred to a private workplace assessment funded by his insurer. Within weeks, he receives captioning software, an amplified headset, and training. He is back at work in two months. His claim is short-lived, his confidence restored, and the insurer saves tens of thousands in potential payouts.
These two examples demonstrate how modest investments made at the right time can have a profoundly positive impact on outcomes.
Legal and Reputational Risk
It is not just about cost. Employers have a legal duty under the Equality Act 2010 to make reasonable adjustments for employees with disabilities. Delay, as well as refusal, can amount to unlawful discrimination. Tribunals have repeatedly found against organisations that failed to act quickly.
For insurers, there is an additional reputational dimension. Customers increasingly expect more than payouts — they expect a partnership. An insurer that helps them return to work, maintain independence, and preserve dignity is an insurer that builds loyalty. Conversely, those who do nothing risk being seen as passive payers rather than active enablers of recovery.
Why Sensory Disabilities Must Be Prioritised
Visual impairment and hearing loss are often overlooked in return-to-work strategies. Yet they are among the most common and most manageable conditions. Adjustments are usually straightforward and affordable, including screen readers, magnification software, hearing devices, captioning, and training. None of these requires complex medical intervention, yet all can make the difference between years on claim and a rapid comeback.
By prioritising sensory disabilities, insurers can demonstrate quick wins. They can prove the Adjustment Dividend in action and then expand the approach to other conditions. This is not about ignoring complex cases, but about recognising the low-hanging fruit where intervention is most effective.
From Compliance to Competitive Advantage
For too long, income protection has been positioned as a product of last resort. Yet the industry is shifting. Customers and regulators alike are calling for greater focus on outcomes, not just payouts. Investing in workplace adjustments is a tangible way for insurers to show leadership.
This is about more than compliance with the law. It is about creating a competitive advantage. Insurers that integrate workplace assessments into claims processes will not only reduce costs but also differentiate themselves as customer-focused, socially responsible, and forward-thinking. In a market where products can appear commoditised, this differentiation is invaluable.
The Adjustment Dividend in Practice
The Adjustment Dividend can be summarised in three levels:
- **Financial** — reduced claim costs, shorter payouts, improved efficiency.
- **Human** — claimants supported to return to work, improved mental health, restored confidence.
- **Reputational** — stronger brand, customer loyalty, competitive differentiation.
These dividends reinforce each other. An insurer that demonstrates proactive support is more likely to attract new customers, retain existing ones, and build positive relationships with employers and brokers.
Practical Steps for Insurers
How can insurers harness the Adjustment Dividend?
- **Commission workplace assessments early.** Do not wait for government schemes with long backlogs.
- **Build partnerships with specialist providers.** Tap into expertise in visual and hearing loss to identify solutions quickly.
- **Monitor and act on recommendations.** Ensure that assessment reports are not left to gather dust but are implemented promptly.
- **Train claims teams.** Equip staff to recognise when adjustments are the proper intervention and how to arrange them.
- **Promote success stories.** Share examples of claimants returning to work to highlight positive outcomes and strengthen brand reputation.
Conclusion
Income protection does not have to be reactive. It can be transformative. By investing in workplace adjustments, insurers unlock the Adjustment Dividend: reduced costs, improved outcomes, and enhanced reputation.
The evidence is clear. Adjustments are affordable, effective, and essential. The cost of doing nothing is far higher than the cost of acting. For every claim that drags on unnecessarily, thousands of pounds are lost — not just in payouts but in human potential.
The choice for insurers is simple. Remain passive payers of long-term claims, or become active partners in the recovery process. The future of income protection belongs to those who choose the latter. The Adjustment Dividend is waiting — it is time to claim it.
To find out more or make a referral, visit https://visualisetrainingandconsultancy.com/workplace-assessments