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.

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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.”