The UK group risk industry paid out a record £2.49bn in claims in 2023, equal to £6.82m a day, according to data released by trade body Group Risk Development (Grid).
That represented an increase of £278.4m over 2022, it said.
Claims increased across group risk products, including group life insurance, group income protection and group critical illness.
- Group life assurance policies paid out total benefits to the value of £1.69bn – an increase of £160.9m over 2022
- Group income protection (GIP) policies paid out a total of £633.6m – an increase of £85.7m over 2022
- Group critical illness policies paid out benefits totalling £160.3 – an increase of £31.8m over 2022.
Average new claim amounts were £137,448 for group life, £27,206 per year for group income protection and £77,743 for group critical illness.
Grid said the claim amounts “demonstrate that these benefits are not perks for the higher paid but throw a vital financial lifeline to people of every salary, age, and position.”
Sick leave
Grid also found that more than half (50.5%) of people who had a period of sick leave starting in 2023, returned to work by the end of the year following support from group risk insurers.
During 2023, a total of 6,299 people who had a period of sick leave starting in 2023, were helped to return to work by year end.
Of that number, a total of 4,691 employees were able to go back to work before a claim was made following interventions provided by the insurer.
Another 1,608 employees went on to claim a group income protection (GIP) benefit during 2023 but had returned to work by the end of that year.
Grid said a total of 7,305 interventions were made within six months of someone’s first absence by group risk insurers during 2023.
Of those 47% had help to overcome mental illness and 10% had support overcoming a musculoskeletal condition.
In total, more than 8,000 people were helped by interventions made by group risk insurers during 2023.
In addition, 885 employees who became a new GIP claimant during 2022 had returned to work by the end of 2023.
Cancer was the main cause of claim across all group risk products.
Grid said: “The huge amount of embedded support within group risk products means all employees can benefit, whether or not a claim is made.
“Such support is continually enhanced to respond to changing needs, such as providing access to virtual GPs.”
In total, during 2023 employees had more than 440,000 interactions with the extra support, provided by group risk insurers.
Katharine Moxham, (pictured) spokesperson for Grid, said: “The record numbers of long-term sick is an issue for the UK, and these figures show how group risk contributes to a solution: employers who offer group risk benefits to their workforce have real and practical help in keeping their employees in work, and helping those who are absent to return.
“Recent figures from Swiss Re’s Group Watch show that group risk benefits are increasing in popularity, and our results show why: the more employers who offer group risk, the more help UK plc has to tackle this issue.”
