Swiss Re Group Watch: Excepted group life sum assured grew by 30.9%

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Excepted group life lump sum death benefit sums assured grew by 30.9% during 2015 according to Swiss Re's Group Watch 2016.

Registered group life lump sum benefit sums assured grew by 6.1%, the report also highlighted. 

Over 300,000 more people became members of group risk schemes in 2015 and the number of people covered now stands at more than 11.5m.

In premium terms, the group risk insurance market has, for the first time, exceeded £2bn.

The report also found that during 2015: 

• Death benefits, including the capital value of widow's and dependants' death in service pensions (DISP), increased by 5.2%.
• DISP benefits fell by 14.1%
• In-force long-term disability income benefits grew by 4.2%
• In-force critical illness sums assured increased by 11.4%

Ron Wheatcroft, Swiss Re technical manager and author of the report, said: "The stand out number this year is the increase in the number of people covered in Excepted Group Life schemes by over 30%. This was not unexpected, given reductions in the pension Lifetime Allowance.

"Group critical illness cover continues to do well with scheme and member numbers increasing.

"Our biggest challenge is to grow the long-term disability income market where there should be a very relevant role for the group risk market.

"There is no better time for the group risk market to work with others to develop products and services which meet the needs of employers and employees, and bring together State and private coverage into a model which dovetails together."

Frank O'Neill, Swiss Re UK & Ireland CEO, said: "Overall, the growth witnessed in 2015 is pleasing. Group risk covers play an important role in covering employees and their families.

"However, although 40% of all insured death benefits and 80% of insured long-term disability income cover are arranged through employer schemes, we still have a lot more work to do in closing the protection gap in the U.K."

Further reading 

Group risk covers 1.25m more people - Swiss Re report

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