UK group danger sector hits file claims payout in 2023

In 2023, the group danger sector within the UK reached a file payout of £2.49 billion, equating to £6.82 million every day, in keeping with business information compiled by Group Danger Improvement (GRiD). The sum represents a £278.4 million enhance from 2022, indicating the intensive use of employer-funded life assurance, earnings safety, and demanding sickness advantages to assist staff and their households final 12 months.

Damaged down, group life assurance insurance policies offered £1.69 billion in advantages in 2023, up £160.9 million from the earlier 12 months; group earnings safety (GIP), £633.6 million (£85.7 million larger than the 2022 rely); and group important sickness, £160.3 million on account of a £31.8 million rise. Common new declare quantities had been vital, with group life assurance at £137,448, group earnings safety at £27,206 yearly, and group important sickness at £77,743.

In the meantime, a notable facet of group danger advantages is their function in facilitating worker retention and return to work. In 2023, 50.5% of staff who took prolonged sick go away managed to return to work by 12 months’s finish, because of assist from group danger providers. These embrace early interventions similar to expedited entry to counselling and physiotherapy, in addition to vocational rehabilitation and mediation.

In whole, 6,299 staff who started sick go away in 2023 returned to work by the top of the 12 months, with 4,691 of them returning earlier than making any claims because of the interventions offered by insurers. It was highlighted that, general, greater than 8,000 people benefited from these interventions in 2023.

GRiD spokesperson Katharine Moxham (pictured) famous: “The file numbers of long-term sick is a matter for the UK, and these figures present how group danger contributes to an answer: employers who supply group danger advantages to their workforce have actual and sensible assist in conserving their staff in work, and serving to those that are absent to return.

“Latest figures from Swiss Re’s Group Watch present that group danger advantages are growing in recognition, and our outcomes present why: the extra employers who supply group danger, the extra assist UK Plc has to deal with this situation.”

Throughout all three group danger merchandise, most cancers was the main explanation for claims in 2023.

Commenting on GRiD’s evaluation, director of claims, rehab, and Unum UK buyer providers Paula Coffey mentioned: “We’re happy to see GRiD as soon as once more highlighting the significance of group danger safety merchandise and the massive quantity of assist they’ve offered to staff to allow them to remain in or return to work. Group earnings safety rehabilitation and claims groups contribute an enormous quantity to the well being, happiness, and productiveness of their shoppers’ workforces every single day.

“At Unum, we have now devoted in-house consultants together with docs, psychiatrists, physiotherapists, and occupational well being professionals offering individualised care and assist for our clients. This holistic strategy to absence administration assist has enabled us to attain a 97% return to work success fee regardless of a 35% enhance in referrals general.

“Our personal claims expertise mirrors the GRiD findings, with most cancers dominating all group danger product claims. Unum paid virtually £110 million in group danger claims for most cancers alone in 2023.”

Coffey added that wellbeing and preventative providers with GIP can assist deal with a few of the causes of absence earlier than an sickness or damage results in day off from work.

What do you consider this story? Share your ideas within the feedback beneath.