Overall, the number of in-force group risk policies increased by 1.4% to 96,006, down from the 3.2% growth seen the previous year. Despite these pressures, the total number of people insured across the market still grew by 3.5%, reaching 16,204,721. Total in-force premiums increased by 2.0%.
The like-for-like growth breaks down as follows:
Death benefits: The number of people insured under group death benefit policies increased by 6.5% on a comparable basis. A major structural change continues within this space: membership of Excepted Group Life Policies (EGLPs) surged by 27.3%, while Registered Group Life policy membership fell by 1.8%. This reflects a growing preference for simpler, non-pension arrangements, though the report warns that the surge in EGLPs will increase the market cost of trustees having to assess periodically any potential inheritance tax liabilities.
Critical illness cover (CI): CI remains the fastest-growing product line, with the number of people insured increasing by 6.5% on a comparable basis. This growth is largely driven by voluntary and flexible arrangements, alongside rising employee awareness of health risks and NHS pressures.
Long-term disability income (LTDI): The number of people insured by LTDI policies increased by 2.6% on a comparable basis. As employers look to manage affordability, the market is seeing a move towards shorter maximum benefit payment periods.
Keith Williams, Head of Group Risk UKI at Swiss Re, said: "While the market demonstrated resilience by continuing to grow in 2025, the headwinds created by the April National Insurance increases were undeniable. We saw a discernible change as employers were forced to pivot away from using benefits for talent attraction, focusing instead on cost control and productivity. It is a challenging environment for businesses, but the fact that the total number of people insured across the market still grew by 3.5% demonstrates the underlying value that both employers and employees continue to place on group risk protection."
These financial constraints are also practically reshaping how specific benefits are designed and delivered across the market.
Ron Wheatcroft, Technical Manager, L&H UKI at Swiss Re, said: "The 2026 data show clear structural changes as employers navigate affordability constraints, most notably the increasing trend toward shorter benefit payment periods in long-term disability income cover and the growth in CI cover which is largely member-paid. We also saw a 27.3% surge in the number of people covered by Excepted Group Life Policies. This sharp increase means the market cost for trustees assessing potential periodic tax liabilities on the trusts holding these policies is also rising, reinforcing our call for the Government to exempt trusts holding pure protection policies from tax."
Looking ahead, industry respondents anticipate that while growth will be modest short-term, the market is moving from a phase of expansion to one of optimisation. The report highlights the Government’s "Keep Britain Working" review as a major opportunity for the sector.
Wheatcroft concluded: "The ‘Keep Britain Working' review represents a significant chance for the sector. It allows us to continue to reframe group risk primarily as workforce health infrastructure rather than just as insurance, highlighting the vital early intervention and vocational rehabilitation support we can provide to employers and workers as the work of the Review is taken forward to its next phases."
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