Category: Group risk fundamentals · Reviewed by Al Jabbar, Broker · Specialist Risks · Last reviewed 2026-06-10
An active member of a group risk scheme is an employee who is, at the relevant date, currently insured under the scheme. Active membership requires the individual to be employed by a participating employer, to satisfy the scheme’s eligibility category (commonly “all permanent UK employees aged 16 to scheme cessation age, having completed any qualifying period of service”), and to be at work or on temporary absence as defined by the policy.
Category: Group risk fundamentals Also known as: Active employee, insured member Related concepts: Eligible employee, Continuation option group risk, Free cover limit group risk
A member is “active” so long as they meet eligibility and are in employment. The status changes if the member leaves service, exceeds the cessation age, ceases to satisfy eligibility (for example moves to a category of staff not covered) or is on a form of absence that the policy excludes from cover.
The concept derives from the policy terms; there is no statutory definition. However, the FCA Handbook (ICOBS 6) requires the insurer’s documentation to set out clearly who is and is not insured, and the policyholder employer has data protection obligations under the UK GDPR and the Data Protection Act 2018 to keep accurate records of insured persons.
Premium is calculated based on the total active member roll, normally rated and revised annually at the scheme review. The accuracy of the active membership data drives premium accuracy, free cover limit calculation, and claim eligibility.
A 200-employee firm has 195 active members at the policy anniversary. Five leavers and ten joiners during the prior year are reconciled at the renewal. The insurer recalculates the premium using the revised active member data and the new average age.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
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