Respondents to Swiss Re’s latest Group Watch report are painting a generally positive picture about prospects for growth in the group protection market next year.
The annual report, which draws on extensive market data and engagement with individuals at employee benefit consultants and product providers, found most respondents thought the number of group critical illness (CI) and group life policies would grow in the next year.
And while figures were slightly lower for group income protection (GIP) and long-term disability insurance products, the upbeat sentiment just about remained.
The report found 64% of respondents expected group CI policy numbers to grow, with 33% expecting no change and just 3% expecting them to fall.
Almost half (49%) of respondents expect benefit levels to increase with 43% anticipating there will be no change and the remaining 8% expecting CI benefits to fall.
Mirroring these figures, nearly three quarters of those polled (72%) expected premiums to increase, while 25% expected no change and only 3% expect them to fall.
In line with previous reports, most growth is expected to come through flexible and voluntary arrangements.
However, the report did also indicate the group CI market is much smaller than death benefits or long term disability income (LTDI) and there were fewer comments about CI than the other group risk products with some organisations not providing or advising on the product.
Death benefits
Turning to life insurance, the feeling was similarly positive as 73% of respondents said they expected the number of in-force policies to increase as new schemes came to market.
More than half (51%) expect benefits to increase with 46% expecting them to be static and 1% expecting in-force benefit to fall.
And reflecting this sentiment, the vast majority (86%) expected premiums to increase with 14% expecting them to be static.
The report added that wage inflation was seen as a factor in driving up benefit levels with expected premium increases over and above inflation increases.
Long-term disability income
However, respondents were slightly less optimistic when it cames to the prospects for income protection: 49% expected the number of policies to grow again, 41% expect the number to be unchanged and 10% thought policy numbers will fall.
However, views were more mixed about whether benefits would increase in 2022, with 35% expecting benefits overall to increase, 41% expecting no change and 24% anticipating that they would fall.
But positivity returned when asked about premiums, with 78% expecting increases, 19% no change and just 3% anticipating that premiums will fall, this being in the context that a fall in policy numbers would drive lower market premiums overall.