The Association of British Insurers (ABI) is calling on the government to remove tax disincentives for employers who provide private health insurance programmes.
The ABI says that research commissioned from Greenstreet Berman, found that employers are increasingly aware of the benefits of occupational health and regard it as an effective way of keeping staff fit and in work.
It adds that a second piece of research from Norwich Union healthcare shows that employees, employers and the government all benefit from occupational healthcare schemes but it is the employee that saddles all the cost.
Commenting on the studies, Stephen Haddrill, the ABI's director general, said: "These influential reports conclude that by removing tax disincentives, occupational health in the workplace could flourish.
"That would be good for individuals, employers and the government. If we stop taxing occupational health as a 'benefit in kind,' and remove the current National Insurance liability that occupational health attracts, we could greatly enhance this important service."
Independent advice on private healthcare