The group risk market has begun to recover from the effects of recession although income protection is still in decline, according to Swiss Re.
It noted that the increase in sums assured which outgrew that of premium income illustrated the highly competitive marketplace.
A recent study by group risk trade body Grid suggested that the implementation of the National Employment Saving Trust (NEST) scheme could help expand the group risk market to new businesses.
Research from the reinsurer's Group Watch found that overall group risk premiums fell by 1.8% last year compared to a 7.7% drop in 2009.
However this was largely influenced by group income protection (GIP) premiums which fell by £50m (8.9%) to £517.3m.
The group life market, which remained the biggest of the three, rebounded from 2009's loss to grow premiums by £21m (2.3%) to £918.3m.
And critical illness continued its noticeable growth from £48m to £50m of in-force premiums in 2010 (3.8%).
Swiss Re explained that in-force sums assured grew in excess of premiums across all product lines, reflecting the competitive nature of the market.
Death benefit sums assured increased by 7%, critical illness sums assured by 7.6% and long-term disability income benefits by 1.6%.
Ron Wheatcroft, technical manager at Swiss Re and co-author of the report, was positive about the results and state of the market.
"The results reflect the very competitive marketplace with pressure on employer costs feeding through to greater competition for intermediaries and product providers.
"Despite a modest reduction, the number of schemes in force held up well.
"And survey respondents frequently pointed to the important role for group risk schemes in the move away from state provision to greater self-responsibility," he added.
