The role of group risk in employee benefits

Structuring a compelling employee benefits package for staff is no easy task. A sound benefits structure, often achieved through group risk solutions, includes protection and planning pillars and can promote physical and financial wellbeing, as well as help improve staff loyalty and retention. 

How to approach group risk

At the Allan Gray retirement benefits conference entitled ‘Through the Noise 2025’, we explored how group risk is perceived and approached, and where it fits into today’s employee benefits ecosystem. 

A clear message emerging from the discussion is that group risk benefits are critical to financial and social security. Like retirement savings, they provide employees in South Africa with access to financial products that many may not be able to afford on their own.

The panel’s insights on claims trends illustrate the need for employers to support a healthy, productive workforce by adopting integrated employee benefit solutions that address the physical, financial and emotional wellbeing of their employees. Here are three key reflections from the panel discussion that can inform how to think about group risk benefits.

Approach group risk from a partnership lens

Group risk offers more than individual protection: it is also a form of community support. As Old Mutual’s head of Customer Proposition: Group Assurance Products Brice Salence Nunes stressed, many employees support extended households and may not easily afford individual cover, making group risk insurance vital. In addition, San-Marié Crause, Managing Executive: Group Risk at Sanlam Corporate, highlighted the need to shift from a commoditised approach to one rooted in partnership – where, beyond pricing, data insights, long-term thinking and relationship-building guide group risk decisions.

Focus on critical illness

Cancer-related claims are on the rise, with Sanlam reporting that cancer accounts for around 20% of disability claims and approximately half of severe illness claims. However, severe illness benefits make up only 3% of total group risk premiums. This mismatch clearly highlights a coverage deficit, leaving many employees financially vulnerable when they need the most support, and underscores the importance of reassessing benefit structures to better reflect evolving health risks.

Understand the impact of lifestyle trends

Rudi van Rooyen, Executive Head of Actuarial at Hollard Insurance, noted that obesity rates in South Africa have surged, with studies showing they have doubled in the past 25 years and tripled in the previous 50 years. He cited a recent Human Sciences Research Council (HSRC) study that revealed that nearly 50% of South Africans have been classified as obese or overweight, which is linked to the heightened risk of developing chronic conditions such as hypertension, diabetes and mental illnesses. If not addressed or managed correctly, these issues could affect both employer productivity and employee financial wellbeing.

Old Mutual’s Nunes added that while HIV- and AIDS-related deaths have declined, recent cuts in donor funding from the United States Agency for International Development (USAID) may reverse progress, increasing tuberculosis (TB) cases and disability claims.

All three panellists emphasised the growing need for employers to actively support employee health through education, awareness and integrated benefit strategies that work to solve the funding gap.

Every pillar has its place

Balancing affordability, optimal benefit coverage and costs remains a challenge, but it is a long-term journey. With strategic commitment from employers, quality guidance from consultants and advisers, and forward-focused products from providers, group risk can become a critical and compelling tool in the employee benefits ecosystem.