The UK group risk industry paid out £2.59bn during 2024, an increase of £99.2m compared to 2023, according to Grid – the industry body for the group risk protection sector.
There was a record £674.5m in group income protection (GIP) policies during 2024, an increase of £40.9m over 2023, according to according to Grid – the industry body for the group risk protection sector.
During 2024 there were 8,301 new GIP claims, totalling £229.4m and averaging £27,630.
And for group critical illness (CI) policies, a total of £179.2m was paid out in 2024 – an increase of £18.9m over 2023. That represented an average pay out of £78,253.
In addition 72% of new absentees under group income protection (GIP) policies returned to work during 2024 .
Grid said, during 2024, a total of 6,733 people who had a period of sick leave were helped to return to work by the end of 2024.
Of these, 4,994 employees were able to go back to work before a claim was made following interventions provided by the insurer.
And 1,739 employees who newly claimed a group income protection (GIP) benefit during 2024 had returned to work by the end of the year.
In total, 5,574 interventions were initiated within six months of someone’s first absence by group risk insurers during 2024.
Among these, half (50%) received mental illness support, 10% had received musculoskeletal support and 9% had cancer support.
Grid said, in total almost 8,500 people were helped by interventions made by group risk insurers during 2024.
Katharine Moxham, spokesperson for Grid (pictured) said: “With the backdrop of the government-backed Keep Britain Working review, these industry-wide statistics are particularly pertinent this year.
“It’s clear that many employers are already benefitting from the significant support that is offered via group risk products in retaining their employees in the workplace, helping them return to work when they are ready to do so, and in providing financial support to staff and their families when they are ill or incapacitated.
“This has largely been achieved due to employers seeking to do the right thing and support their staff.
“Group risk has the potential to play an even greater part in the UK’s economic recovery if more employers adopted this approach.”
Moxham continued: “Group risk products offer a range of valuable non-financial benefits that contribute to both employee wellbeing and a supportive workplace culture.
“In the case of group income protection, beyond providing income during periods of long-term absence due to illness, injury or disability, it often includes access to rehabilitation services, such as physiotherapy and mental health support, which helps individuals recover and return to work more effectively.
“These benefits also ease the burden on managers through external case management support to help maintain a productive workforce and a supportive work environment.
“Keeping staff in work should always be the priority but where this is not possible, providing financial support for those who die or need to take a hiatus is crucial.
“Group risk products have paid out a record amount this year, meaning many families have had one less concern at the worst of times.”
