The number of people able to access workplace-based group risk policies rose by more than half a million last year, despite the wider backdrop remaining “challenging”, the latest market snapshot has shown.
The annual Group Watch report from insurer Swiss Re found that the number of in-force group risk policies – so, products such as employer-based life assurance, income protection and critical illness – increased by 3.2%, from 91,739 in 2023 to 94,675 in 2024.
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The number of people insured rose by 3.7%, from 15.1 million to 15.6 million in 2024. The number of people insured under group death benefit policies increased by 3.6%, slightly slower than the 3.9% reported in 2023.
The number of members insured in critical illness schemes increased by 4%, compared with 9.6% in 2023, while the growth rate for voluntary and flexible arrangements dropped to 5.3%, from 6.5% in 2023.
The number of people insured by long-term disability income policies increased by 3.9%, compared to 6.6% growth in 2023.
Keith Williams, head of group risk UK and Ireland at Swiss Re, and one of the report’s co-authors, said: “The fact that all product lines were up in 2024 is hugely encouraging.
“However, following a bumper 2023, growth is most definitely slowing. This is partly a consequence of lower inflation driving reduced salary and, therefore, benefit increases.”
Katharine Moxham, spokesperson for the group risk industry body GRiD, said it was positive that now more than half a million more employees had access to such group risk benefits.
“The all-round growth during 2024 demonstrates that employers increasingly recognise the value of group risk, not only for giving financial protection to their people for the worst kind of life events, but also for the support services provided to both employers and employees,” she said.
“It’s particularly pleasing to see so many SMEs (small and medium-sized enterprises) offering group risk benefits to their staff, with over 90% of group risk benefits offered for groups of less than 250 employees,” she added.
Employers were nevertheless facing a range of challenges, including absorbing costs from additional National Insurance contributions, increasing PMI premiums and other financial pressures.
“The benefits punch above their weight, and provide a raft of help and support for health and wellbeing, as well as financial protection,” emphasised Moxham.
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