The aging workforce is causing a tightening in insurer group terms, a group risk specialist has said.
According to IFA Broadstone, auto-enrolment and the aging workforce will create an "interesting scenario" and insurers will have to respond to more claims and more sickness.
Clare Dare, risk and flexible benefits director, said the firm has already seen a tightening in insurer terms.
Phil Duly, chartered financial planner at Barnett Waddingham, said insurers would also have to consider terms given auto-enrolment legislation applied to age 75 while life insurance schemes did not always follow.
He added that the main effect on benefits with auto-enrolment was on life insurance.
Duly said: "Many employers have made life insurance contingent on defined contribution pension membership. I really do not see group critical illness (group CI) as a common benefit for them. Group CI is not on the agenda with clients at all."
But Canada Life said the aging workforce would make group CI an increasingly attractive part of benefits with research showing a third of employees planning to work beyond 65.
Paul Avis, sales and marketing director at Canada Life Group Insurance, said: "It is evident that many UK workers intend to work past the age of 65. It is inevitable that having an older workforce will have implications on benefits.
"If a substantial rise in the number of older workers should occur within the workplace, employers will find it hard to avoid providing types of products, such as group CI, but may find it more expensive."
He added by speaking to an advisor now employers could ensure cost-effective packages and avoid an unexpected bill.
But advisers have not been reporting any demand for group CI as clients are focusing on auto-enrolment integration.
Dare, at the London branch of Broadstone, said the chnaging workplace creatign a lot of opportunity for advisers to consult with clients.
But added: "We have not seen group critical illness enquiries so much. Clients are willing to talk about it but it has become more prominent as a voluntary benefit as an alternative to group income protection which can be expensive.
"We have not seen huge numbers of increased enquiries for CI, but this could be because auto-enrolment integration is a bigger priority at the moment."
A fifth of workers said the aging workforce would change their businesses as there would be more health issues, according to Canada Life Group research; 27% said employers would be forced to hand out incentives to encourage earlier retirement.
And it showed 48% of workers were not aware the default retirement age had been scrapped.
Men particularly felt they were more likely to work for longer with 44% saying they would still be working past 65.
