The cost of employment continues to rise – increases to employer National Insurance contributions in April 2025, along with recent annual uplifts to both the National Minimum Wage and National Living Wage, alongside global economic pressures have tightened margins for businesses. Against this backdrop, it can be tempting to review workforce protection costs as an area to scale back. However, doing so risks overlooking one of the most effective ways to protect both your people and your bottom line.
Why group risk cover matters
Long‑term sickness is a significant issue for UK employers and the wider economy. One in every 13 working‑age people in the UK are prevented from working by long‑term sickness, with over 2.8 million individuals economically inactive due to long‑term health issues.¹
This creates not only direct costs – such as absence, recruitment, and lost productivity – but also indirect impacts on morale, continuity, and overall workplace culture. Serious illnesses such as cancer and heart disease remain leading causes of absence, while mental health conditions are increasingly prevalent in insurance claims.
Group risk arrangements – such as life assurance, income protection, and critical illness cover – are designed to offer vital financial protection when the worst happens. But beyond the financial safety net, they provide an essential framework for employers to support employees more proactively, ensuring people stay healthy, engaged, and able to return to work more quickly when illness strikes.
The real value: support beyond the payout
While financial payments remain at the heart of group risk, the true value often lies in the added‑value features woven into these policies. These services run quietly in the background, yet they make a genuine difference day‑to‑day – improving employee wellbeing, reducing absence, and strengthening your organisation’s resilience.
Here are some of the most powerful features and why they matter:
Early intervention, mental health, and occupational health support
Early intervention services can help employers identify and manage health issues before they escalate. Access to rehabilitation experts, mental health specialists, and occupational health professionals ensures employees receive the right support early, often preventing long‑term absence and improving return‑to‑work outcomes.
Embedded support for employees and managers
Group risk schemes frequently include access to practical and emotional support for both employees and managers. From legal and financial guidance to bereavement counselling, these services are invaluable for helping teams navigate difficult life events while maintaining workplace stability.
Absence management support
Absence management tools and case‑management advice give employers the insight and confidence to handle sickness absence sensitively and efficiently. With structured data and expert input, employers can spot trends, intervene earlier, and reduce the length and cost of absences.
Employee assistance programmes (EAPs)
EAPs have become a cornerstone of competitive benefits packages. They provide confidential support for personal or work‑related issues and can play a major role in fostering a healthy, engaged workforce. However, not all providers include full EAP access – some place limits on counselling sessions or restrict the range of services, so it’s essential to review what’s available before making a decision.
Remote GP access, cancer support, and wellbeing resources
Remote GP consultations make medical advice available around the clock, helping employees get answers and treatment quickly. Cancer support services, including access to specialist nurses, can ease the emotional and logistical burden on affected staff. Yet again, not every provider includes these benefits, so it’s important to compare options carefully.
Online health assessments and mental health tools
Many providers now include digital health platforms that allow employees to complete health assessments, set wellbeing goals, and access tailored mental health resources. These tools create ongoing engagement and demonstrate a tangible commitment to employee wellbeing.
Second medical opinions, physiotherapy, and specialist referrals
When serious illness or injury occurs, the ability to access a second medical opinion or specialist referral can be life‑changing. Physiotherapy support can aid recovery and reduce re‑injury risk – protecting both employee welfare and business productivity.
Considering self‑insurance: weighing the options
Rising costs sometimes prompt employers to explore self‑insuring group life or income protection risks rather than buying external cover. While self‑insurance can appear attractive where claim frequency is expected to be low, it introduces significant exposure. A single life assurance or income protection claim can represent a substantial, unexpected financial liability, particularly for smaller employers without large cash reserves.
Insured group risk policies pool risk across thousands of employers, ensuring claim costs are predictable and supported by insurer capital. They also provide administrative efficiency, compliance support, and access to valuable embedded wellbeing services that self‑insured arrangements rarely include. In short, self‑insurance can offer short‑term savings but removes the long‑term stability, financial certainty, and added‑value benefits that make group risk cover so effective.
Unlocking everyday value
Most of these services are available to all covered employees – not just claimants – enhancing wellbeing while building a culture of care and resilience. But with providers offering varied levels of support, it’s crucial to understand exactly which added‑value features meet your business needs before making decisions. Once plans are in place, it’s essential to keep up to date on the offerings, and ensure employees know what support is available and where to get it. Clear communication of these ancillary benefits is the cornerstone of a good wellbeing strategy.
The Mattioli Woods Employee Benefits team helps employers assess existing protection arrangements, identify key priorities, and implement personalised and competitive employee benefits packages that deliver measurable value.
Disclaimer: The information in this article is provided for general guidance only and does not constitute financial advice. All benefits are subject to provider terms and conditions.
Source:
¹ Office for National Statistics – Labour Market Overview, UK: February 2026
