Swiss Re’s Group Watch 2012 report has stated that in-force group risk premiums rose by 2.9% in the UK during 2011, compared to a fall of 7.7% in 2009 and 1.8% in 2010.
The Group Watch 2012 report is an analysis of in-force data covering group life, group long-term disability income and group critical illness cover in the UK market.
All three main product areas surveyed in the report including death benefits, long-term disability and critical illness premiums rose in 2011. Critical illness premiums grew by 9.4%, premiums for death benefits rose by 4.1% and, long-term disability saw a marginal growth of 0.1%.
The report found that group life schemes currently provide 40% of all insured death benefits in-force in the UK, while group long-term disability income schemes have increased their share from 70% to 75% of all insured cover since 2002.
Commenting on the report, Russell Higginbotham, Swiss Re’s UK CEO said: “As the welfare state withdraws from universal provision, the importance of the ongoing role of the private sector in protection cannot be over-estimated.
“A robust group risk sector is therefore indispensable, and the growth we are seeing is an encouraging sign for the future.”