The number of in-force group risk policies has increased by 3.2% from 91,739 in 2023 to 94,675 in 2024, according to research by Swiss Re.
Its Group watch 2025 report, which was compiled using market data and responses from employee benefit consultants and product providers, also found the number of people insured rose by 3.7% from 15.1 million to 15.6 million in 2024, while the number of people insured under group death benefit policies increased by 3.6%, compared to 3.9% in 2023. Within this, membership of excepted group life policies grew by 9.3%, while registered group life policy membership went up by 2.1%.
The number of members insured in critical illness schemes increased by 4%, compared to 9.6% in 2023, while the growth of voluntary and flexible arrangements dropped to 5.3% from 6.5% in 2023.
In addition, the number of people insured by long-term disability income policies increased by 3.9%, compared to 6.6% in 2023. The report also highlighted that employers are more commonly insuring shorter benefit payment periods for group long-term disability.
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.”
Ron Wheatcroft, technical manager, life and health UK and Ireland at Swiss Re and one of the report’s co-authors, added: “The trend towards shorter maximum benefit payment periods gives major cause for concern, considering the potential impact on the welfare state if an employee is unable to return to work before the end of a policy’s payment period.
“Many respondents expected employers to be reluctant to cut back on group risk products and services, given the positive messages they send to employees and the impact on workplace wellbeing. Others were less optimistic, noting the increasing cost of private medical insurance and the fact this could lead to cutbacks on other benefits. Despite the short-term challenges employers are facing and cuts in the government’s welfare bill, a greater emphasis on supporting people who are sick or disabled to return to work will undoubtedly position the role of the employer and rehabilitation services at the forefront of solutions.”
