2011 death benefits premiums increased by 4.1 per cent year-on-year, compared with a rise of 2.4 per cent in 2010, with the number of lives covered under death benefit arrangements increasing to 8.2m in 2011, from 7.9m the previous year.
Long-term disability income premiums increased by 0.1 per cent, following a fall of 8.9 per cent in 2010. The number of lives covered under long-term disability income schemes were 1 836 020, an increase of 2.4 per cent on the previous year.
Critical illness premiums meanwhile grew by 9.5 per cent, following a 3.8 per cent increase in 2010. In-force critical illness schemes rose from 2,209 to 2,333, an increase of 5.6 per cent.
Ron Wheatcroft, head of technical at Swiss Re says: “Looking ahead to 2012 and 2013, most respondents expect that economic confidence and the speed of recovery will continue to drive market demand for both group death benefit and long-term disability income schemes.
“For 2012 and 2013, there is optimism for further growth in critical illness though many expect it to be modest, with employers seeing provision as a low-priority benefit for employees. Growth is expected through “flex” and voluntary plans, often as an alternative to other benefits such as long-term disability income or private medical insurance.”
