The cancer tsunami… are your clients prepared?
Cancer remains one of the leading causes for claims according to the recently released life claims statistics.
More worryingly is the devastating impact the cancer tsunami approaching South Africa could have on workplace productivity. However, Regard Budler, Managing Executive: Momentum Corporate Client Solutions, says that proactive action by employers and their financial advisers can help to reduce the impact.
Financial advisers have a very important role to play when it comes to ensuring that clients are not only aware of the various financial risks that exist, but also understand how they can best protect themselves against these risks.
The magnitude of claims
According to the Cancer Association of South Africa (CANSA), one in four South Africans are personally diagnosed or have a loved one, family member, friend or colleague with cancer. This suggests that up to a quarter of South African employees will be impacted by cancer, either directly or indirectly.
Momentum's disability claims experience over the last five years reflects the impact that cancer is having on the South African workplace. Budler says cancer-related disability claims accounted for 43% of total claims and increased on average around 6% each year. However, the magnitude of the increase varies across income groups and industry sectors.
In the mining sector, declining claims for HIV-related disability have been replaced by aggressive increases in cancer-related claims. White-collar industries have also experienced a steady increase in cancer-related claims, which Budler believes is largely lifestyle-related. The increase in cancer-related disability claims has been particularly steep across middle-income earners.
The rise in cancer-related claims is unlikely to abate any time soon, according to a study published by medical journal Lancet which predicts that South Africa could see an increase of 78% in the number of cancer cases by 2030.
A knock-on effect on absenteeism
"Although cancer is increasingly being seen as a chronic and manageable disease, the complexity of treating the disease, as well as the range and depth of intense emotion associated with the disease, means it has a profound impact on the physical as well as the mental and emotional health of the patient and their family. This inevitably has a knock-on effect on absenteeism and levels of engagement while at work," says Budler.
The impact of cancer on productivity is evident in the results of a study that was done across employees in the US, which reported that working cancer patients missed 26 workdays because of chemotherapy or radiation therapy, and 18 days because of treatment of side effects. Patients with more side effects missed significantly more workdays. The study also showed how employees acting as a caregiver or providing support to a working patient with cancer also miss time from work due to this role.
A paper published in the Journal of Cancer Epidemiology on the impact of cancer on productivity in BRICS (Brazil, Russia, India, China and South Africa) countries shows that lung cancer is responsible for the greatest productivity losses in South Africa.
Up to 90% of all cancers are caused by environmental and lifestyle-related factors according to CANSA. "This means proactive measures to prevent cancer from developing in the first place can go a long way towards reducing the impact on the workplace," says Budler.
Proactive measures
"Companies should ensure employees have access to a wellness engagement programme which is underpinned by proven behavioural economic principles and encourages employees to make lifestyle choices that reduce the risk of cancer. Research shows that members who are actively engaged in Momentum's wellness and rewards programme, are four times less likely to make a disability claim due to a chronic lifestyle-related condition like cancer, than members who do not engage with the programme," he says.
"Engagement initiatives like this can also help demystify cancer by educating employees, debunking myths and encouraging regular health screening for cancer risk factors. This will help reduce the stigma that still exists around cancer and facilitate earlier detection and treatment, which generally leads to more positive health outcomes," continues Budler.
The World Health Organisation (WHO) points out that 19% of all cancers are attributable to the environment, which includes the work setting. Budler however says, "Legislative requirements aside, a safe and healthy workplace simply makes good business sense."
"There are, for example, programmes that have been developed which offer companies financial rewards for having a safe workplace and addressing employees' financial and physical health needs. Initiatives like this can play a big role in reducing the impact of cancer across the South African workplaces," he says.
"Cancer is already impacting on workplace productivity. However, proactive action by employers can mitigate the risk the rising incidence of cancer poses to their workplaces," concludes Budler.
Editor's Thoughts:
As a financial adviser, educating clients to understand their financial needs is at the centre of your business, as is assisting employers and members in selecting the right products that will enable everyone's wellness. How can employers and financial advisers, in looking after employees' financial wellness, future proof employee benefit propositions? Are the moving parts in place to secure optimal benefits? Are you asking the right questions? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
