Group risk covers 1.25m more people - Swiss Re report

clock

The number of people insured under group risk schemes expanded by almost 1.25m between 2010 and 2014, new figures from Swiss Re have revealed.

The figures showed 200,000 more people received life and disability insurance cover arranged by their employers in 2014.

For the first time the group risk market saw annual growth beyond £100m recorded.

The figures come from the Group Watch 2015 report from Swiss Re, which summarises results and surveyed 34 insurers and intermediaries.

Premiums have grown 8% across all lineswith a 9% increase in in-force death benefit premiums and a 6% growth in long-term disability income (income protection) premiums.

There has also been growth in excepted group life premiums which grew 28% and saw benefits increase by 29%.

There was also an 8% increase in group critical illness premiums.

The number of new schemes grew in 2014 with more group life and critical illness schemes but long-term disability income schemes continued to decline.

Life and disability insurance rose by 200,000 more people in 2014, compared to 300,000 in 2013.

Russell Higginbotham, CEO of Swiss Re UK, said: "These are good figures for the group risk market - but they hide the fact that this industry is at a crossroads.

"The welfare state cannot continue to fund at current levels and the next Government will have to make cuts to the welfare budget.

"Insurers need to be ready to step up and adapt to that new reality. If we don't, we may find existing models under threat in the same way that reforms have reconfigured pension provision."

Ron Wheatcroft, author of the report, said: "The results show solid growth once again but we need to decide if we want to carry on as we have done for the past few years or offer something more ambitious."

"Auto-enrolment could be the way to increase coverage if we are unable to deliver growth to begin to fill the gap which will be left by declining state provision.

"Employees tell us that they would value greater workplace access to products and services but, somehow, this hasn't translated to more coverage."

More on Term Assurance

Anna Glod highlights 'bad practises' of Utility Warehouse non-advised IP sales

Anna Glod highlights 'bad practises' of Utility Warehouse non-advised IP sales

“They were trying to sell an Income Protection policy to me without even checking what my occupation, earnings, or health was.”

John Brazier
clock 04 August 2022 • 2 min read
Julie Thompson, Protection Proposition Manager, Scottish Widows.

Industry Voice: Cost of Living and Protection

Scottish Widows’ Julie Thompson looks at the cost of living challenges and the realities of helping customers keep their protection in place.

Julie Thompson, Protection Proposition Manager, Scottish Widows.
clock 14 July 2022 • 4 min read
LV= pays out over £5 million on IP claims during early 2022

LV= pays out over £5 million on IP claims during early 2022

Between January and April

John Brazier
clock 14 June 2022 • 1 min read

Highlights

FCA gives three-month Consumer Duty extension for advisers

FCA gives three-month Consumer Duty extension for advisers

Deadline of 31 July 2023

Hemma Visavadia
clock 27 July 2022 • 5 min read
Meet the firm turning professional athletes into protection advisers

Meet the firm turning professional athletes into protection advisers

"You're only ever as good as your last game, but your next game could be your last"

Hemma Visavadia
clock 25 July 2022 • 5 min read
The COVER Review July 2022: Protection & Financial Education, IPAW 2022 and Reviewing 2022 So Far

The COVER Review July 2022: Protection & Financial Education, IPAW 2022 and Reviewing 2022 So Far

Now available for members to watch

John Brazier
clock 20 July 2022 • 1 min read