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

“A robust group risk sector is therefore
indispensable, and the growth we are seeing is an encouraging sign
for the future.”