23 September 2026
Rising medical inflation, increasing healthcare utilisation, growing demand for mental health support and ongoing skills shortages are placing significant pressure on employers.
As a result, organisations are looking beyond traditional insurance protection and focusing on prevention, early intervention and rehabilitation.
The growing focus on prevention is reflected in industry data. According to Katharine Moxham of GRiD (Group Risk Development), UK group risk insurers paid a record £2.69 billion in claims during 2025, while also providing thousands of health and wellbeing interventions designed to prevent long-term absence and support earlier returns to work.
Group risk and employee benefits are increasingly being used not only to provide financial protection, but also to improve workforce wellbeing, reduce absence and manage long-term people costs.
1. Employers are valuing support services as much as the insurance cover
Group risk benefits are no longer viewed solely as insurance products. Employers increasingly recognise the value of the wellbeing and health services that accompany them.
Many UK group risk providers now offer access to services such as:
Employee Assistance Programmes (EAPs)
Mental health support and counselling
Virtual GP services
Second medical opinion services
Physiotherapy support
Nutritional advice
Health and wellbeing assessments
Bereavement support
Caregiver assistance services
The scale of support being delivered through these services continues to grow. According to GRiD, group risk insurers provided health and wellbeing interventions to nearly 8,300 employees during 2025, demonstrating the broader value of group protection benefits in supporting employee wellbeing. Many of these services are available from day one, so employees can access support before issues escalate into extended absence or insurance claims.
2. Employee education is becoming a cost-control tool
Even the best wellbeing support delivers little value if employees are unaware it exists. Employers are therefore investing more in benefits communication to encourage employees to access support sooner. Whether it is counselling for mental health concerns or physiotherapy for musculoskeletal issues, early engagement often leads to better outcomes and reduces the risk of long-term absence.
For many organisations, improving awareness of existing benefits can unlock significant value without increasing spend.
Awareness and utilisation are critical because support often takes place before an insurance claim is required. In 2025, 3,920 employees returned to work before a Group Income Protection claim was made, following support and intervention provided by their insurer. (GRiD)
3. Rehabilitation is becoming just as important as protection
Group income protection providers increasingly offer rehabilitation services alongside financial support.
These may include:
Occupational health guidance
Vocational rehabilitation
Mental health interventions
Physiotherapy programmes
Return-to-work planning
Industry data from GRiD highlights the value of this approach. In 2025, 68% of employees who became newly absent due to ill health and received support through group risk benefits had returned to work by the end of the year. A total of 5,590 employees were helped back into work during the year.
4. Prevention is now a productivity strategy
The true cost of poor workforce health often extends beyond insurance claims.
Absence, presenteeism, lost productivity, increased management time and workforce disruption can create substantial business costs. By encouraging early access to support services and equipping managers to recognise warning signs, employers can address issues before they develop into long-term challenges.
The result is it can contribute to a healthier workforce, stronger business continuity and improved organisational performance. Intervention data also helps identify the issues having the greatest impact on workforce health.
According to GRiD, during 2025, 48% of all group risk wellbeing interventions related to mental health, while 11% related to musculoskeletal conditions and 9% supported employees affected by cancer.
5. Rising PMI costs are driving greater investment in prevention
Increasing private medical insurance (PMI) costs are prompting employers to focus more heavily on preventative health measures.
Key areas of investment include:
Health assessments and screening
Cancer awareness initiatives
Mental health resilience training
Musculoskeletal prevention programmes
Digital health and wellbeing tools
While healthcare claims cannot be eliminated, earlier intervention can improve outcomes and help reduce the severity and duration of future claims.
This focus aligns closely with claims experience across the group risk market. Based on data from GRiD, in 2025, cancer was the leading cause of claims across Group Life Assurance, Group Income Protection and Group Critical Illness schemes, reinforcing the importance of early detection, health screening and timely access to treatment.
6. Data is helping employers identify risks earlier
Health and claims data is giving employers greater insight into emerging workforce trends.
This may highlight:
Mental health absence patterns
Musculoskeletal claim drivers
Cancer-related claims
Demographic health risks
Underused support services
Data is increasingly enabling employers to target resources more effectively. With almost half of all insurer-led interventions focused on mental health, organisations can gain valuable insight into where preventative support is likely to deliver the greatest benefit.
These insights allow organisations to target interventions more effectively and address risks before they lead to higher absence levels or increased claims.
The shift from protection to prevention
For many employers, the future of group risk is no longer just about providing financial support when something goes wrong. It is increasingly about helping employees stay healthy, remain productive and access support earlier.
The latest GRiD data demonstrates this shift clearly: alongside paying a record £2.69 billion in claims, group risk providers helped 5,590 employees return to work, delivered interventions to nearly 8,300 employees and supported many individuals before a claim was ever needed.
Prevention, early intervention and rehabilitation are becoming just as important as protection itself.
This article is intended for general information purposes only and does not constitute insurance, employee benefits, legal, tax, medical or regulatory advice. Any statistics referenced are sourced from GRiD (Group Risk Development) and reflect industry-wide trends at the time of publication
Sources:
Group risk payouts hit record £2.69bn as return-to-work support grows