UK group risk industry paid out £1.4bn in 2015

Katharine Moxham 430

The UK group risk industry paid out a total of £1.4bn-worth of claims in 2015, according to research by industry body Group Risk Development (Grid).

Its research, based on an analysis of total payments made by the UK group risk sector, also found that a total of 24,603 claims were made in 2015.

The research also found:

  • More than two-thirds (69%) of group critical illness claims were due to cancer, which was also the main cause of claims for group life products (47%) and group income protection products (24%).
  • Heart disease was the second main cause of claims for group life products in 2015, accounting for 17% of claims.
  • Following cancer, mental illness was the main cause of claims for group income protection products (24%) in 2015, while heart attack was the second main cause of claims for group critical illness products (10%).
  • The average claim amount for group life was £111,055 in 2015 and the average claim amount for group critical illness was £62,701.
  • The value of group life claims paid out totalled £999.5m in 2015, and the value of group critical illness claims totalled £62.6m.

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Katharine Moxham (pictured), spokesperson for Grid, said: “Employers are not obliged to provide any of these benefits, but by doing so they make a major contribution towards protecting employees and their families against the financial consequences of death or prolonged disability. Through this, they also ultimately benefit wider society by reducing the welfare burden.

“The main causes for claims are also interesting and can help dictate where support might be focused. For instance, preventative care and screening can play an important role in the detection and treatment of cancer and heart disease: two of the main reasons for claiming. In addition, there is a wealth of support available within group risk products for mental health.”