The latest market snapshot shows that the number of people who can access group risk policies at work has increased by over half a million in the last year. However, the overall backdrop remains “challenging”.
Swiss Re’s annual Group Watch Report found that group risk products, such as income protection, critical illness, and employer-based insurance, increased by 3.2% from 91 739 in 2023, to 94 675 in 2024.
In 2024, the number of insured people increased by 3.7% from 15,1 million to 16,6 million. The number of people covered by group death benefit policies grew by 3.6% in 2024, slightly slower than 3.9% in 2023.
The number of people insured under critical illness schemes increased 4% compared to 9.6% in 2023. However, the growth rate in voluntary and flexible arrangements decreased from 6.5% to 5.3%.
The number of long-term income insurance policies has increased by 3.9% compared with a 6.6% increase in 2023.
Keith Williams, Swiss Re’s head of group risks UK and Ireland and one of the co-authors of the report, said that: “The fact all product lines are up by 2024 is enormously encouraging.
The growth rate is slowing down after a record 2023. This is partially due to lower inflation, which has led to lower salaries and benefits increases.
Katharine Moxham said that it was a positive thing that more than a half million employees now have access to group risk benefits.
She said that the growth in 2024 shows employers are increasingly aware of the importance of group risk. Not only do they want to protect their employees from the worst life events but also to provide support services to employers and workers.
She added, “It is particularly pleasing to see that so many SMEs offer group risk benefits to staff. Over 90% of the group risk benefits are offered to groups with less than 250 workers.”
The employers were still facing many challenges. These included the need to absorb costs resulting from increased PMI premiums, as well as additional National Insurance contributions.
Moxham said that the benefits “punch above their weight” and offer a range of support and help for health and well-being, as well financial protection.
Subscribe to our weekly HR news and guidance
Every Wednesday, receive the Personnel Today Direct newsletter.
