The UK group risk industry paid out a record £2.59bn in claims in 2024, up £99.2m on the previous year, according to data from Grid.
This equates to £7.1m in payouts each day across group life assurance, income protection, and critical illness policies.
Group life assurance made up the largest share at £1.74bn (up £39.4m), followed by group income protection (GIP) at £674.5m (up £40.9m), and group critical illness (GCI) at £179.2m (up £18.9m). Cancer remained the leading cause of claim across all three products.
The data shows that a total of 6,733 employees on prolonged sick leave returned to work in 2024. Of these, 4,994 did so without making a GIP claim, supported by insurer interventions, while 1,739 returned after starting a claim.
Group risk providers initiated 5,574 early interventions within six months of absence, with 50 per cent related to mental health, 10 per cent to musculoskeletal issues, and 9 per cent to cancer. Nearly 8,500 people received support through these interventions in total.
An additional 499 new GIP claimants from 2023 returned to work in 2024, alongside the 1,608 who had returned by the end of 2023.
Grid spokesperson Katharine Moxham says: “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.
“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.”
