58 per cent of Canadians cited affordability as a key factor impacting their wellbeing, according to RBC Insurance survey
Recent findings from RBC Insurance found that that gaps in accessibility, affordability, and awareness are directly impacting employee well-being, especially among women, younger workers, and those managing chronic conditions. Consequently, plan sponsors are being urged to invest in these areas.
That’s why Tony Bruin, head of Group Benefits at RBC Insurance, emphasized that current benefit plans must better reflect the real and evolving needs of the workforce. He pointed to significant disparities in how coverage meets these needs, highlighting that “75 per cent of women are really looking for support towards their health,” including areas like fertility and menopause.
Bruin noted women face a higher burden compared to men when it comes to coverage adequacy and access, pointing to 31 per cent of women versus 22 per cent of men. The same gap exists in booking appointments, where 25 per cent of women report difficulty versus 17 per cent of men.
Affordability is a sharper issue too where 68 per cent of women indicate those rising costs versus men at only 49 per cent. Mental health also shows a clear gender divide, with 33 per cent of women experiencing anxiety or depression versus their male counterparts at 17 per cent.
For Bruin, these statistics aren’t just numbers, they reflect lived experiences, he said, referring to how women close to him struggle to access appropriate mental health and menopause support. He argues that insurers and employers must take a more active role in responding to this need.
“We need to be very conscious of making sure that we understand what our populations require and what we can do for them,” he said. However, he insists that even the best-designed programs can fall short if employees aren’t made aware of them.
“It could be lack of awareness,” he added. “We need to work with plan sponsors on making sure that they are aware and communicating these to their employees.”
According to RBC, six in ten – or 58 per cent of Canadians cited affordability as a key factor impacting their well-being, and those with chronic conditions are more likely than other groups to identify rising costs and affordability issues.
Consequently, those managing chronic physical, developmental or mental health-related disabilities report that coverage amounts are often insufficient to cover their needs, resulting in out-of-pocket costs higher than they can justify.
Similarly, many in the Gen Z and Millennial generations, aged 18-34, feel that the coverage amounts offered by group benefits are insufficient and do not adequately meet their needs. While they are the most interested in making lifestyle changes to enhance their financial health, manage stress, and achieve work-life balance, many report barriers such as affordability (59 per cent), lack of motivation (44 per cent), and busy schedules (40 per cent).
Yvonne Eldson, senior consultant at Baynes & White highlighted one potential solution to increase affordability in plans, pointing to healthcare spending and wellness accounts.
"They're fairly popular now, and a lot of companies have them but they also give the employees the ability to use those funds on the illnesses and conditions that they have and help provide the support that they need," she said. "Unfortunately, I'd love to say that employers should just increase all the benefits, but in today's economy, that's not really realistic."
Bruin underscored that today’s economic realities are forcing plan sponsors to grapple with affordability more than ever, pointing to a mix of inflationary pressures, rising practitioner fees, and the introduction of expensive drugs as factors driving up the cost of providing benefits. Rather than expanding benefit offerings indiscriminately, Bruin advised employers should focus on smarter design.
“It doesn’t have to be about adding more benefits,” he said. Instead, it’s about “understanding your population,” and being prepared to make “trade-offs, or tailoring your benefits to that employee demographic.”
The real challenge for employers, he added, isn't just offering benefits but rather aligning them with what employees actually need. He believes that understanding the workforce starts with “making sure that plan sponsors are really aware of the needs of their population,” he said, pointing to tools like internal surveys as a way for plan sponsors to gather actionable insights.
He underscored the findings as an issue of retention. After all, well-aligned benefits can reduce turnover, which in turn helps manage another rising cost, particularly when it comes to hiring. But that only happens when they’re targeted. He urged employers to tailor their programs with intention, taking into account demographic shifts, employee feedback, and usage trends. That may mean phasing out low-value components and replacing them with offerings that reflect actual demand.
“If they’re not paying attention to what the employees are asking for, then they're at risk of losing those employees through attrition,” he warned. “If certain things are being underutilized, you’re understanding why,” he said. “If it needs to be traded out, then you trade out those services to something that the employees are really looking for,” he added.
Bruin ultimately doesn’t see cost containment and comprehensive coverage as mutually exclusive. Instead, he encourages employers to reframe how they build their plans.
“It’s not necessarily about adding additional costs to their benefits program. It could be about making trade-offs,” he said, emphasizing that employers who understand their workforce, whether through surveys or direct feedback, can optimize offerings to better match what plan sponsors and members truly need.
“Even the costs associated with onboarding employees can be an onerous expense on employers today,” he added.
