Small businesses remain the backbone of our economy, but a significant proportion of the 5.5m SMEs in the UK still do not have health or protection insurance covering their 16.6m employees.
This is starting to change though. There is increased demand from those running smaller businesses for policies that can help them address the challenges around workplace absence, particularly given the ongoing difficulties many people experience accessing primary healthcare services.
Latest industry figures, published by Swiss Re, show the number of SMEs offering group risk products grew last year, and this was a major driver in the overall growth of the group risk sector in 2025.
Trade body, Group Risk Development (GRID) spokeswoman Katharine Moxham points out that this growth isn’t just in lower cost group life policies, typically seen as a mainstay of this market, but has also been seen in sales of both group income protection and group critical illness.
“This goes a long way towards disproving the notion that only large employers offer these benefits,” she says.
There has been a lot of focus on the factors driving demand among small businesses for protection, wellbeing and healthcare products. But it is also worth noting this shift has been supported by improved technology across the insurance industry, making it more cost effective for corporate advisers and EBCs to target and service this market.
Kevin O’Neill, consulting lead, health & protection at Barnett Waddingham says: “From an intermediary perspective the smaller end of the SME market typically generates limited income, unless business is written at scale. Even then, it is crucial that pre- and post- on-risk processes are handled as efficiently as possible.
“This is where digital processing through insurers’ platforms becomes essential, enabling greater efficiency and helping to maintain commercial viability.”
Broadstone head of risk and protection Susan Bourke agrees: “Technology is playing an increasingly important role in the evolution of group risk and wellbeing products. Insurers have recognised that the SME market requires a more bespoke approach, leading to significant investment in dedicated digital portals designed to support end-to-end policy management.”
She says this automation has helped strip out much of the administrative delay that historically made servicing smaller businesses — particularly those without dedicated HR teams — time-consuming and inefficient.
“At the same time, adviser and employer budgets are often more constrained in the SME market, and improved portals now make it quicker and more straightforward to obtain quotes, implement and manage policies, handle renewals and support claims. This helps to reduce overall servicing costs for both advisers and employers.”
Brown and Brown head of group risk Terry Froment says improved technology and newer portals have “definitely helped” both advisers and clients. He says that the majority of his firm’s clients are SMEs and this continues to be a growing area for the business.
“Market reviews that used to take a couple of weeks can now be completed in a matter of hours, and for SME clients, speed really matters. We’re also seeing increased investment in the customer journey, with renewals, client management, and even claims submission in some cases, now being handled through insurer portals.”
Improved processes
Advisers point out that these tech advances are an ongoing process, and many want to see further improvements in what providers offer.
O’Neill says: “While the ability to obtain quotes and renewals, access client management information and utilise self-service options is important, further enhancements to streamline the quotations process and minimise referrals to human underwriters would definitely be welcomed.”
But other consultants working across the market say that some of these improvements are already happening.
Bourke adds: “More recently, technology has evolved to support more complex schemes, with higher free cover levels enabling the majority of SMEs to go on risk without medical underwriting.”
She says these various tech changes have been a game changer when it comes to helping advisers expand into the SME market, and have been one of the reasons why more small businesses are now able to offer these policies to their staff.
“From an adviser perspective, the most valuable technology is that which simplifies processes, while improving visibility and control for clients.”
She says the key priorities, when it comes to these portals are efficient quoting and renewal functionality, streamlined policy administration, clear management information, and self-serve tools that can help reduce ongoing administrative burden for employers.
Digital wellbeing
Insurers have sought to upgrade portals and administration systems, helping open up the group risk market to SMEs, but they have also added a whole range of digital wellbeing services to group risk products, which have made these products far more attractive to smaller businesses.
Bourke describes this as a “significant development” and adds that digital GP services have been particularly well received and are typically the most utilised benefit, offering employees and their families prompt access to medical support when NHS appointments may be difficult to secure. She also says there is considerable interest in digital mental health support, offered on GIP and GCI products. This includes helplines, mood trackers and resilience tools that can provide accessible, early-intervention support.
Advisory role
Corporate advisers and EBCs continue to play a key role in this sector. As many point out, while there is increased demand from SMEs for greater support when it comes to workplace absence and employee wellbeing, many employers still remain unsure about what products are available, what they are likely to cost, and how they might address the various challenges businesses face in the current climate.
Bourke says industry surveys correctly identify that employers want more help, but says that in many cases “this intent and desire for support has yet to move into meaningful action”.
This is where the role of the adviser is critical, she says. “There remains a clear gap between employee need and employer provision, particularly for core financial protections such as group life and group income protection.
“While cost pressures continue to affect SMEs, this is not fundamentally a demand problem. More often, it reflects a lack of awareness, perceived complexity and limited confidence about what to put in place. Many employers recognise the need for support but are unsure where to start or how to implement solutions effectively. Businesses increasingly need guidance, not just products.”
Building Better Benefits Strategies
When it comes to larger corporates, EBC and advisers have for many years primarily focused on a consulting role, but increasingly this also extends to the SME market.
This may be a shift from how some advisers have previously thought about the SME market, where there may have been more of a focus on the sales of lower cost products, such as group life, in the past, while ensuring SMEs are meeting compliance when it come to basic employee benefits, such as pensions.
Wingate Benefits Solutions Business Development Manager Adam Bell says broader market guidance with a focus on employee wellbeing is increasingly important, particularly given the range of added-value services and wellbeing benefits many of these insurance products now offer.
“We know that group risk products can be very cost-effective solutions for SMEs, but they are often not the first employee benefits an SME turns to when setting up benefits and looking at their broader employee benefit proposition.
“Advisers need to be helping SMEs build strategies that are tied to key business metrics that ensure a return on investment.”
O’Neill says: “The adviser’s role is to reshape perceptions of what modern group risk benefits really offer. When engaging with SMEs, it can be effective to reframe products such as group income protection as primarily health and wellbeing solutions, with the insurance element positioned as a final safety net if early intervention and absence management support do not deliver the desired outcome.”
Bourke adds: “The real opportunity lies in simplifying and packaging protection, group risk and wellbeing into solutions that are easy to understand, affordable to deliver and clearly linked to business outcomes.
“We are seeing a clear shift away from compliance-led conversations towards a broader focus on workforce resilience and employee support. Broadstone’s recent investment in our team and capabilities reflects growing demand from SME clients for high-quality advice and more tailored, end-to-end solutions.”
She adds that the range of digital support services now offered are helping with this process.
“Digital platforms are strengthening the feedback loop between employees, employers and insurers.
“Real-time data on benefit usage offers employers a clearer view of workforce health, highlighting what is valued and where support may be falling short.”
As engagement grows, these insights can help inform wellbeing strategy, product design and improve the claims experience.
And as AI becomes more widely used, this should help insurers respond more effectively, directing employees to the right support sooner, tailoring care more closely to individual needs and further refining products to meet the needs of SMEs.
