In 2014 alone, the number of people covered by group risk insurance schemes rose by 200,000, according to a study by Swiss Re.
In its Group Watch 2015 report, Swiss Re found that the overall UK group risk market grew by 7.9 percent in 2014 alone. Couple this growth with the 300,000 people who received life and disability cover from their employers in 2013 and you can see the definitively positive trend that is forming.
1.25 Million Now Insured Under Group Risk Schemes
In fact, since 2010, the number of people insured under a group risk scheme has jumped by almost 1.25 million and the market as a whole last year experienced positive growth. For example, in-force death benefit premiums increased by 8.9 percent, long-term disability income premiums by 6 percent and critical illness premiums by 7.8 percent.
The overall findings of the report are that the UK group risk insurance market is resilient. However, Russell Higginbotham, CEO Swiss Re UK & Ireland, was keen to stress that “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.”
Steady Growth Across the Board
In addition to the healthy figures witnessed in the UK group risk market, Swiss Re’s Group Watch 2015 report also found steady growth across most lines of products.
For example, 1.25 billion in-force premiums were reported in the group death benefits sector for 2014 and the market witnessed growth in excess of £100 million for the first time ever, continuing the positive trend experienced over previous years.
Excepted group life premiums saw massive growth of 27.9 percent last year and critical illness cover also increased in 2014, with almost 475,000 people covered – an increase of more than 90,000 from 2013. Sums assured increased by 15.2 percent, in-force premiums by 7.8 percent and the number of in-force schemes rose by 7 percent to 2,840.
‘Offer Something More Ambitious’
One of the report’s authors, Ron Wheatcroft, 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.”
He further added: “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.”
Premier Choice firmly believe in the importance of providing policies which are relevant to the needs of both employer and employee. This results in the workforce appreciating and valuing the benefits you have invested in.
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