Britain's workforce has more protection benefits than in previous years, signalling a positive effect on wellbeing, productivity and resilience, insurance specialists have claimed.
According to the latest Swiss Re Group Watch 2024, group income protection and group risk products have risen both in terms of the level of insured individuals and the number of in-force policies.
This marks a record year of growth for 2023 and a positive upward trend.
The report said:
- The level of insured individuals and benefits increased across all three product lines - death benefits, long-term disability income and critical illness
- The number of in-force policies increased by 4,420, (87,376 to 91,796)
- The number of people insured hit 15,314,655 - a 6.2 per cent increase year-on-year.
This is a significant improvement on figures for 2022.
The number of employees insured under group risk policies (15.3mm) now exceeds half the payrolled population, according to the Office for National Statistics.
This upward trend marked what Clare Lusted, head of product proposition for Unum UK called a "recognition" by employers of the value that group risk products - and the value-added benefits, such as virtual GP consultations - can offer.
She said: "By complementing the strong financial protection these products provide, the growing range of holistic health and wellbeing support providers in this space offer is understandably an attractive proposition for employers seeking to foster a culture of care and enable their workforces to thrive."
As reported in FT Adviser, last year's data from the Financial Conduct Authority's FCA Financial Lives figures revealed that, in 2022:
- 29 per cent of UK adults had life insurance (individually and through the workplace)
- 13 per cent had critical illness
- 6 per cent had income protection.
Just before Covid in 2020, these figures stood at 30 per cent, 13 per cent and 5 per cent respectively.
Katharine Moxham, spokesperson for industry body Group Risk Development, said it was pleasing that Swiss Re had reported group risk figures that were "up by every measure".
She said: “It’s excellent news that in 2023, the number of people covered by the industry increased by 893,268, making group risk benefits some of the most popular employee benefits offered by companies.
“It also demonstrates that employers increasingly see the value of what we do as an industry – not just in terms of financial protection for when the worst happens but also the extra support services we make available to employers and employees alike."
In terms of market providers, Canada Life retained its number one market position year on year.
Dan Crook, interim managing director for group protection at Canada Life, said: "This is a very positive story, especially in the context of the long NHS wait times and wider pressures in the public health system.
“At the point of need, our moment of truth, the group protection market continues to deliver significant positive impacts to individuals and their families, whether measured through the prompt payment of claims, or the wider accessibility to additional benefits which add value to the employee proposition for employers."
Need for better language
The Swiss Re report also highlighted the topic of the language the industry uses to explain and promote group risk, with calls for this to be made clearer.
Moxham said: "It’s key for communications around group risk benefits to be simplified. so that people who work outside the industry can relate to the value of what they have in place, and it’s an area where the industry and employers need to work together.”
