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Employee Benefits News

Latest News
15 May 2017

Group Risk cover supports record number of families

The UK Group Risk industry provided financial support to a record number of families last year, according to industry body Group Risk Development (GRiD).

The latest industry figures from GRiD show that a total of nearly £1.5bn was paid out during 2016, an increase of £100m on 2015. This helped a total of 24,925 UK families maintain their household´s financial resilience after the death, illness, accident or disability of a breadwinner.

A breakdown of the figures reveals that Group Life policies paid out benefits totalling £1.067bn, Group Income Protection policies paid out £358.7m and Group Critical Illness policies paid out a total of £71.6m.

GRiD also noted that the average claims amounts (£114,239 for Group Life, £24,740 p.a. for Group Income Protection, and £65,704 for Group Critical Illness) demonstrate that these are not just benefits for top earners.

Katharine Moxham, spokesperson for GRiD, commented: “These figures give insight into the fantastic contribution of employer-sponsored group risk protection benefits in supporting people when they need it most. These policies pay out in dreadful circumstances for employees and their families. It´s excellent to be able to quantify the extent of the support we give as an industry through publishing these figures.

“It´s very affordable for employers to make a difference, but GRiD´s research regularly indicates that the cost of these benefits is overestimated or businesses don´t appreciate how much is included, which could also actually save them money elsewhere (for instance by not having to invest separately in a stand-alone Employee Assistance Programme or HR/legal advice).”

Moxham explained that basic level Group Life cover can be provided for around 0.5% of payroll, while a more comprehensive package — including Group Life and Group Income Protection benefits — typically costs less than 2% of payroll.

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