In 2019, the Group Risk industry paid out a record £1.76bn in claims, new data shows.
According to the figures released by Group Risk Development (GRiD), the industry body for the Group Risk protection sector, the total amount of claims paid last year was £75m more than the year before, with cancer claims making up the majority.
A total of 26,433 UK employees and families were helped to avoid financial hardship during difficult times for them, usually following the death, illness or disability of a loved one. It once again highlights how Group Risk protection products can be utilised by employers to safeguard their employees financially.
In addition to paying out claims, Group Risk products also helped 5,248 employees return to work after a period of sick leave, as well as facilitating 74,707 interactions with the additional help and support services that are funded by Group Risk insurers.
Group Life Assurance policies – also known as Death In Service policies – paid out a total of £1.171 billion in 2019 – an increase of £53.7 million over 2018. Meanwhile, Group Income Protection policies paid out a total of £492.98 million – an increase of £10.28 million over 2018. Finally, Group Critical Illness policies paid out benefits totalling £93.6 million in 2019 – an increase of £11.2 million over 2018.
The average claim for Group Life policies in 2019 was £125,762, while Group Income Protection and Group Critical Illness claims averaged £26,430 p.a. and £69,411 respectively. These figures highlight how such policies aren’t just intended for individuals in senior positions and also provide a vital financial lifeline to employees regardless of their salary, age or role.
Across all three Group Risk products, cancer was the main cause of claims in 2019, accounting for 42% of Group Life Assurance claims, 27% of Group Income Protection claims and 65% of Group Critical Illness claims.
As well as paying out claims on policies, Group Risk insurers also helped employees access crucial support services, including:
Speaking about the GRiD figures, spokesperson Katharine Moxham said: “The group risk industry has again demonstrated that it supports people through the most difficult of times, giving financial, emotional and practical help to employees and their families when they need it most.”
Some people say to me, “Why should we offer Group Life cover? It’s boring! Our employees are too young for Group Life cover.” Well, the figures referenced above speak for themselves.
There are CLEAR and VALUABLE benefits for having such cover in place for your employees. If you don’t already offer Group Risk cover for your employees, ask yourself why and then give me a call to discuss.