Marvin Onumonu72% of new absentees under group income protection (GIP) policies returned to work during 2024, figures from group risk industry body GRID found.
Employers continued to use group risk protection, including employer-funded life assurance, income protection and critical illness benefits, to support staff and their families.
Data showed that the group industry paid out £2.59bn in 2024, up £99.2m from 2023.
In total, 6,733 people who had taken sick leave were helped to return to work by the end of 2024.
Of these, 4,994 employees went back before a claim was made after interventions from the insurer.
A further 1,739 who claimed a group income protection benefit in 2024 also returned to work by year-end.
Additionally, insurers initiated 5,574 interventions within six months of someone’s first absence during 2024.
Of these, 50% received mental illness support, 10% musculoskeletal support and 9% cancer support.
Almost 8,500 people were helped by interventions from group risk insurers during the year.
A further 499 employees who started claiming group income protection in 2023 had returned to work by the end of 2024.
This was on top of the 1,608 employees who began claiming in 2023 and returned in the same year.
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.”
