Data compiled by GRID, the industry body for the group risk protection sector, indicated that, once again, employers continued to extensively utilise group risk protection (employer-funded life assurance, income protection and critical illness benefits) to provide financial support to employees and their families in 2024. A total of £2.59bn was paid out by the group industry during 2024, an increase of £99.2m compared to 2023.
Return to work:
In addition to financial payment, one of the most valuable benefits of group risk is the support it can provide in helping employees stay in or return to work. Seventy-two per cent of employees notified by employers as potential group income protection claimants who had a period of prolonged sick leave starting in 2024 had returned to work by the end of the year.
During 2024, 6,733 people who had a period of sick leave were helped to return to work by the end of 2024.
Of these:
· 4,994 employees were able to go back to work before a claim was made following interventions provided by the insurer.
· 1,739 employees who newly claimed a group income protection (GIP) benefit during 2024 had returned to work by the end of the year.
In total, 5,574 interventions were initiated within 6 months of someone’s first absence by group risk insurers during 2024. Among these, half (50%) received mental illness support, 10% had received musculoskeletal support and 9% had cancer support.
Almost 8,500 people in total were helped by interventions made by group risk insurers during 2024.
499 employees who became new GIP claimants during 2023 had returned to work by the end of 2024. This is in addition to the 1,608 employees that began claiming GIP benefits in 2023 that had returned to work by the end of 2023.
Katharine Moxham, spokesperson for GRiD said: “With the backdrop of the Government-backed Keep Britain Working review, these industry-wide statistics are particularly pertinent this year. It’s clear that many employers are already benefitting from the significant support that is offered via group risk products in retaining their employees in the workplace, helping them return to work when they are ready to do so, and in providing financial support to staff and their families when they are ill or incapacitated. This has largely been achieved due to employers seeking to do the right thing and support their staff. Group risk has the potential to play an even greater part in the UK’s economic recovery if more employers adopted this approach.”
Total benefits paid across group risk products:
· Group life assurance policies paid out total benefits to the value of £1.74bn: an increase of £39.4m over 2023.
· Group income protection (GIP) policies paid out a total of £674.5m: an increase of £40.9m over 2023.
· Group critical illness (GCI) policies paid out benefits totalling £179.2m: an increase of £18.9m over 2023.
The average new claim amounts (£138,220 for group life; £27,630 pa for group income protection; £78,253 for group critical illness) highlight that these benefits provide a crucial safety net for people across all salary levels, ages and positions.
| Benefit | No. of claims | Value of claims paid | Average new claim amount |
| Group Life Assurance | 12,567 | £1,737,008,300 | £138,220 |
| Group Income Protection* | 18,038 | £674,464,590 | £27,630pa** |
| Group Critical Illness | 2,290 | £179,200,275 | £78,253 |
| Total | 32,895 | £2,590,673,165 |
*Total number of claims paid (new and existing) during 2024 and value of claims in payment as of 31 December 2024, including any claims paid for part of 2024.Group income protection claims are often paid for several or many years so the ultimate value of these benefits will be much higher.
**During 2024 there were 8,301 new group income protection claims, totalling £229.4m pa and averaging £27,630 pa
Main cause of claim:
Cancer was the main cause of claim across all three products during 2024.
| Benefit | Main cause of new claims | % | Second main cause of new claims | % |
| Group Life Assurance | Cancer | 39% | Ischaemic Heart Disease | 15% |
| Group Income Protection | Cancer | 27% | Mental illness | 20% |
| Group Critical Illness | Cancer | 68% | Heart Attack | 8% |
Moxham continued: “Group risk products offer a range of valuable non-financial benefits that contribute to both employee wellbeing and a supportive workplace culture. In the case of group income protection, beyond providing income during periods of long-term absence due to illness, injury or disability, it often includes access to rehabilitation services, such as physiotherapy and mental health support, which helps individuals recover and return to work more effectively. These benefits also ease the burden on managers through external case management support to help maintain a productive workforce and a supportive work environment.
“Keeping staff in work should always be the priority but where this is not possible, providing financial support for those who die or need to take a hiatus is crucial. Group risk products have paid out a record amount this year, meaning many families have had one less concern at the worst of times.”
