Employer-sponsored group risk benefits paid a record £2.69 billion to employees and their families in 2025, while helping thousands of people return to work following periods of ill health, according to new figures from Group Risk Development (GRiD).
The total payout across group life assurance, group income protection and group critical illness policies rose by £96.7 million compared with 2024, equating to £7.36 million being paid out every day.
Annual figures from GRiD, the body representing the UK group risk industry, also showed that 68 percent of employees who became newly absent from work and were supported through group income protection arrangements had returned to work by the end of 2025.
Return-to-work support remains a key benefit
The figures showed that 5,590 employees who were absent because of ill health were helped back into work during 2025.
Of these, 3,920 returned before a claim was made following support from their insurer, while a further 1,670 employees who had made a group income protection claim had returned to work by the end of the year.
Group risk insurers also provided health and wellbeing interventions to nearly 8,300 employees during 2025. Almost half of interventions were related to mental ill health, while 11 percent focused on musculoskeletal conditions and 9 percent on cancer.
Katharine Moxham, a spokesperson for GRiD, said the figures demonstrated the practical value of group risk benefits for both employers and employees.
“It is great to see just how much employers and employees benefit from the tangible and practical support from group risk benefits,” she said. “Good work is good for people, and of course, employers need a present workforce to function, and our data shows just how much group risk supports this.”
The data comes as employers continue to focus on reducing long-term sickness absence and improving workforce participation, following increased attention from policymakers on economic inactivity linked to ill health.
Cancer remains the leading cause of claims
Cancer was the leading cause of claims across all three group risk products during 2025. Among group life assurance policies, it accounted for 33 percent of new claims, followed by ischaemic heart disease at 15 percent.
For group income protection policies, cancer represented 28 percent of new claims, while mental illness accounted for 20 percent. It was responsible for 69 percent of new group critical illness claims, with heart attacks representing 9 percent.
The industry paid £1.83 billion through group life assurance policies during the year, £670.7 million through group income protection and £190.8 million through group critical illness cover. A total of 32,608 claims were paid across the three products.
Financial protection reaches record levels
Average claim values continued to demonstrate the importance of employer-sponsored protection benefits for workers and their families. The average new group life assurance claim paid £143,436, while the average new group critical illness claim paid £77,098. New group income protection claims averaged £29,026 a year.
Moxham said the combination of financial support and rehabilitation services was helping employees at some of the most difficult periods of their lives.
“A strong economy needs a strong and present workforce. Hence the focus from government with initiatives such as the Keep Britain Working Review. Our new data shows again just how important group risk benefits are in supporting a strong economy, and employers who offer these benefits to their workforces are the winners.”
She said the growing value of claims paid reflected the increasing importance of these benefits within workplace reward packages.
“Group risk benefits are some of the most popular benefits in the UK, with more and more employers offering them every year, and with data such as this, it’s easy to see why. The financial payouts from group risk benefits can be life-changing for employees and their families, at a time when they need it most.”
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
