UK group risk industry paid £2.21 billion in claims in 2022

group risk 2022 claimsThe UK group risk industry paid out £2.21 billion in claims in 2022, equivalent to £6.05 million per day, according to data published by Group Risk Development (Grid).

There were 261,631 interactions during 2022, with additional help and support services from group risk insurers, with 27% receiving access to counselling, 13% related to illness and 5% to legal issues.

A total of 5,651 employees were helped back to work within a year following sickness absence. Almost two-fifths (39.1%) were able to go back to work during 2022 because of early interventions, with 47% receiving help to overcome mental illness and 10% overcoming a musculoskeletal condition.

Group life assurance policies paid out total benefits to the value of £1.53 billion, a decrease of £36.17 million over 2021, while the average claim was £121,655.

Group income protection (GIP) policies paid out £547.91 million, an increase of £1.77 million over 2021, with an average claim of £26,755 per annum.

Group critical illness policies paid out benefits totalling £128.5 million, an increase of £22.1 million over 2021, while the average claim was £72,427.

Cancer was the main cause of claim across all three products during 2022, with Covid-19 only accounting for 3.7% of group life assurance claims, down from 11.7% in 2021. Covid-19 was the 7th main cause of claim for group life in 2022, compared with being the 4th main cause in 2021.

Sign up to our newsletters

Receive news and guidance on a range of HR issues direct to your inbox

This field is for validation purposes and should be left unchanged.

Last year, Covid-19 accounted for 6.1% of new GIP claims, down from 7% the prior year, and was the 6th main cause of claim for GIP that year, versus the 5th main cause in 2021.

Katharine Moxham, spokesperson for Grid, said: “Once again, our claims stats give a material figure which shows just how much employers and employees gain from group risk benefits: financially, physically and emotionally. No other benefits pay out as much, or offer such good value, which is why we’re seeing their popularity grow year on year.”