72% of GIP claimants returned to work in 2024 – GRID

Katharine Moxham, spokesperson for GRID, said: “With the backdrop of the Government-backed Keep Britain Working review, these industry-wide statistics are particularly pertinent this year. 

“It’s clear that many employers are already benefitting from the significant support that is offered via group risk products in retaining their employees in the workplace, helping them return to work when they are ready to do so, and in providing financial support to staff and their families when they are ill or incapacitated. 

“This has largely been achieved due to employers seeking to do the right thing and support their staff.”

Moxham added: “Group risk has the potential to play an even greater part in the UK’s economic recovery if more employers adopted this approach.”

Group life assurance policies paid out £1.74bn in total, an increase of £39.4m over 2023. 

GIP policies paid out £674.5m, up £40.9m, while group critical illness policies paid out £179.2m, increasing by £18.9m.

The average new claim was £138,220 for group life, £27,630 per annum for group income protection and £78,253 for group critical illness. 

There were 12,567 group life assurance claims, 18,038 group income protection claims and 2,290 group critical illness claims during 2024.

Cancer was the main cause of claim across all three products in 2024, according to GRiD.

For group life assurance, 39% of new claims were for cancer, followed by ischaemic heart disease at 15%; for GIP, 27% of new claims were for cancer and 20% for mental illness. 

For group critical illness, 68% of new claims were for cancer and 8% for heart attack.

Moxham said: “Group risk products offer a range of valuable non-financial benefits that contribute to both employee wellbeing and a supportive workplace culture. 

“In the case of group income protection, beyond providing income during periods of long-term absence due to illness, injury or disability, it often includes access to rehabilitation services, such as physiotherapy and mental health support, which helps individuals recover and return to work more effectively.”

She added: “These benefits also ease the burden on managers through external case management support to help maintain a productive workforce and a supportive work environment.

“Keeping staff in work should always be the priority but where this is not possible, providing financial support for those who die or need to take a hiatus is crucial.

“Group risk products have paid out a record amount this year, meaning many families have had one less concern at the worst of times.”