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Employee Benefits News

Latest News
13 Apr 2015

Number Of Employees Protected By Group Risk Schemes On The Up

A new study has revealed that the number of UK workers to be protected by group risk insurance rose significantly last year, Employee Benefits reports.

According to the ‘Group Watch 2015´ report conducted by Swiss Re, 200,000 more employees were covered by such schemes in 2014 alone. What´s more, researchers also found that the overall market for group risk rose by 7.9% during this time.

The report examined and summarised group risk business results at the end of the year. Another promising finding for 2014 was that the number of people protected by critical illness insurance rose by more than 90,000 to reach 475,000. In-force schemes increased by 7%, whilst in-force premiums rose by 7.8% and sums assured by 15.2%.

It was also found that benefits grew by 29.4% and excepted group life premiums rose 27.9%. In addition to this, the number of people whose employer covered them for long-term disability income protection increased by nearly 2% last year.

Comparing the data with figures from 2010, researchers also noted that the number of UK employees insured by group risk schemes had grown by almost 1.25 million.

Commenting on the report, Swiss Re´s CEO Russell Higginbotham said that while the figures spelled good news for the group risk market, they also “hide the fact that this industry is at a crossroads.”

“The welfare state cannot continue to fund at current levels and the next government will have to make cuts to the welfare budget,” he explained.

This means that insurers will have to be ready to adapt their policies in line with this or risk existing models becoming outdated and insufficient.

Agreeing with Higginbotham was the report´s author Ron Wheatcroft, who added that although the results show “solid growth”, insurers will need to decide if they want to “carry on as [they] have done for the past few years or offer something more ambitious.”

Copyright © M2 Bespoke 2015

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