The UK group risk sector experienced an unprecedented surge in claims payouts in 2023, reaching a record £2.49 billion, which translates to a staggering £6.82 million in payouts each day. This significant increase, documented by Group Risk Development (GRiD) — an insurance industry body that aims to promote group risk through a collective voice to Government, policymakers, stakeholders and employers — further highlights the growing demand for and reliance on employer-funded employee benefits, such as Group Life Insurance, Income Protection, and Critical Illness.Breaking down the numbersAs you take a closer look at the numbers, the breakdown of the payouts is quite revealing:Group Life Assurance: £1.69 billion, up by £160.9 million from the previous year.Group Income Protection: £633.6 million, a rise of £85.7 million.Group Critical Illness: £160.3 million, an increase of £31.8 million.These numbers not only reflect the increasing financial support for employees and their families but also highlight the significant role of group risk benefits in promoting employee retention and return to work. In 2023, 50.5% of employees on extended sick leave returned to work by year’s end, thanks to early intervention measures like counselling, physiotherapy, vocational rehabilitation, and mediation, according to the GRiD data.YuLife’s comprehensive wellbeing measures also play a pivotal role in promoting healthier lifestyles and preventing chronic illnesses. By encouraging daily wellness activities through their gamified app, YuLife helps employees adopt and maintain healthy habits. This proactive approach not only reduces the incidence of chronic illnesses but also mitigates the severity of health issues — resulting in fewer long-term absences and quicker returns to work.Reasons for the surge in payoutsThe record payouts in the group risk sector can largely be attributed to several interrelated factors. Increased awareness and uptake of group risk benefits among employers have driven this growth, with more companies recognising the value of providing strong support for their workforce. This is back by recent data from Swiss Re's Group Watch report for 2024, which shows a rise in the popularity of these benefits.The Swiss Re Group Watch Report reveals that the number of insured individuals and benefits increased across all product lines, with the total number of insured rising to 15.3 million, a 6.2% increase year-on-year. Notably, the number of members covered under lump sum death in service benefit schemes rose by 5.5%, while those covered under long-term disability income (LTDI) schemes increased by 6.6%. Critical Illness Insurance saw the most substantial growth, with a 22.4% increase in insured members.Other reasons for the increase in payouts include ongoing health challenges, particularly the prevalence of cancer — which remains the leading cause of claims across all group risk products. What’s more, economic and social factors, such as the lingering effects of the COVID-19 pandemic and current economic pressures, have exacerbated employees’ health issues, leading to a higher number of claims.The role of employee benefitsGroup risk benefits have proven invaluable in supporting employees through tough times. In 2023, more than 8,000 employees benefited from interventions provided by insurers, with 6,299 employees returning to work after sick leave, 4,691 of whom did so before making any claims.“It’s excellent news that in 2023, the number of people covered by the industry increased by 893,268, making group risk benefits some of the most popular employee benefits offered by companies,” said Katharine Moxham, a spokesperson for GRiD. “The number of employees insured under group risk policies (15.3m) now exceeds half the payrolled population, which is a step-change in itself given the steady increase in employment to higher than pre-pandemic levels.“It also demonstrates that employers increasingly see the value of what we do as an industry – not just in terms of financial protection for when the worst happens but also the extra support services we make available to employers and employees alike.”Why businesses should choose YuLifeIn the context of this data from GRiD, YuLife stands out as a leader in the Group Insurance sector that provides unique value both to businesses and their employees. YuLife’s unique approach to employee benefits combines comprehensive insurance coverage with a gamified employee app that encourages healthy living. By engaging employees in daily wellness challenges, YuLife not only enhances their physical and mental wellbeing but also rewards users with a virtual currency, YuCoin, which can be redeemed for vouchers with leading retailers and charities.Here are a few reasons why businesses should consider YuLife for their Group Insurance needs:A holistic approach to wellbeing: our app promotes healthy habits among employees, reducing the likelihood of illness and subsequent claims.Engagement and motivation: the gamified app fosters a sense of community and competition, motivating employees to stay active and healthy.Financial incentives: through YuCoin, employees can earn tangible rewards, increasing benefits engagement and satisfaction.Supportive infrastructure: with access to counselling, physiotherapy, and other support services, YuLife helps employees return to work faster and stay productive.Proven impact: YuLife’s approach has been shown to drive more than 3x the engagement rates of average employee benefit schemes.In conclusion...The record payouts in the group risk sector last year highlight the growing demand for comprehensive employee benefits. As businesses navigate economic uncertainties and growing health challenges, partnering with a forward-thinking provider like YuLife can offer substantial advantages. By integrating wellness initiatives with broad insurance coverage, YuLife not only supports your employees during difficult times but also fosters a healthier, engaged, and more productive workforce. Investing in Group Insurance with YuLife is not just a safeguard against unforeseen events — it is a proactive step towards a healthier, happier workforce.About YuLifeYuLife is working to reimagine the insurance industry by protecting lives, rewarding living and inspiring life. We’re on a mission to transform traditional insurance into a life-enhancing experience each employee will value and use daily. How does it work?Our award-winning app uses behavioural science and game mechanics to reward your people for living well while offering protection in case of crisis. And with our top-rated employee assistance programme, your team gets access to mental, financial and social support, virtual GPs, nutritionists, life coaches and more to help them live their best lives.Because we believe that your employees should benefit from their insurance from day one — and that wellbeing should be accessible every day, for everyone.Request a demo for your team today.