Customer story: childcare organisation in South Holland saves €45,000 a year on sick pay contributions
This childcare organisation in South Holland employed around thirty staff and had been with Interpolis for sick leave insurance for over 10 years. And that’s understandable. When everything is running smoothly and you’ve got off to a good start, there’s little reason to review your insurance policy every year. In childcare, there is already plenty that demands attention: timetables, staffing, quality, legislation and regulations, and everything else that comes with working as a team.
Yet it began to gnaw at them as the premium became an increasingly heavy burden in recent years. At that time, the organisation was paying an annual premium of €77,000. With a total wage bill of around €1,000,000, that amounted to a premium rate of 7.3%. The cover was structured at the time to suit their situation, but the question was simple: are we still paying a premium that is proportionate to what we receive?
“We want to know if there’s a smarter way to do this”
What we often find in projects like this is that companies aren’t necessarily looking for ‘the cheapest’ option. Above all, they want clarity. Because as soon as you start cutting costs on something like staff absenteeism, the first thought that springs to mind is: surely you must be compromising on something.
That’s why we’ve approached this project as we usually do: we use a premium check to assess the current situation and compare it with what’s possible today.
Premium Check: the same cover, but a much lower premium
Based on the data, we were able to present a more competitive offer to this childcare centre. Whereas they were used to an annual premium of €77,000, we were able to offer an annual premium of €32,000.
In practical terms, this means that the premium rate comes to 3.22% instead of 7.3%.
On paper, that difference may seem like ‘a few per cent’, but in practice, with a total payroll of around a million, it amounts to a significant sum.
The result: a reduction of €45,000 in annual premiums (a saving of approximately 58%)
And that is precisely why it’s worth checking your premiums: not because companies haven’t got their affairs in order, but because after ten years with the same insurer, you often simply pay out of habit. Meanwhile, the market, underwriting criteria and rates do change.
