Keep Britain Working review boosts confidence in group risk’s role in workforce health

The report, based on group life, long-term disability income and critical illness in-force data from product providers and a market questionnaire completed by providers and employee benefits consultants, reviews the UK group risk market in 2025 and provides an outlook for 2026. 

Key trends from 2025

The market showed continued but slower growth in 2025 as a result of economic pressures on employers. As anticipated, the April 2025 employer National Insurance (NI) contribution increases challenged some benefit spending, prompting some employers to delay or cancel new benefit initiatives and focus more on cost control and productivity. 
Despite this, the total number of all in-force group risk policies grew by 1.4%, while the number of insured individuals increased by 3.5% to more than 16.2 million. 

Just under 12 million people were members of death benefit schemes, 3.3 million of long-term disability income (LTDI) schemes and 888,040 of critical illness schemes.

Group life schemes amounted to 71% of policies, followed by LTDI at 21.6% and critical illness at 7.4%. 

Group life

The number of group life policies increased by 1.2% and membership by 4.8%.

The trend towards using excepted group life policies (EGLP) rather than covering death benefits in registered policies continued, with a jump of 27.3% in EGLP members. For the first time, the number of registered scheme death benefit members declined (by 1.8%).

Long-term disability income (LTDI)

In-force policies increased marginally (+0.6%). There was some evidence of brand new schemes coming to market. These are mainly SME businesses.

Although scheme membership fell slightly (-1.6%) with one fewer data contributor, comparable data show underlying growth.

The trend to reduce the maximum benefit payment duration continues as more employers look to ways to manage rising costs. 

Critical Illness

In-force policies grew by a healthy 5.8% and membership by 5.7%. 

There was strong growth in voluntary member-paid schemes rather than employer-paid. 

Outlook for 2026

The market outlook is cautiously optimistic although growth is expected to be modest, driven mainly by inflation and salary increases. The higher employer NI costs will continue to challenge budgets. 

Although budgetary constraints may limit expansion, smaller employers are seen as a key growth segment.

The market is positive about the Keep Britain Working review. Insurers are working proactively to showcase propositions and demonstrate how products and support, such as wellbeing services, early intervention and vocational rehabilitation, can become key to managing a return to work when this is possible.