Several factors are behind benefits costs’ steady climb. Inflation is putting pressure on medical costs, with global medical claim costs outside the US projected to rise to 11.7% in 2024, continuing a trend of double-digit increases every year since 2021. (2) Insurers have also become more selective on who and what they will insure, and people are using private health insurance more often and for more severe claims.
Investing in people is a top priority, so maintaining competitive pay and benefits when costs go up is a major concern. 30% of SMEs noted this concern in our latest People Risk survey, with 37% saying they worry about the impact of rising costs on HR and resource expenses to manage benefits programs. (3)
Although it’s harder to plan when future insurance premiums and other costs are uncertain, we believe there are four actions SMEs can take to help control costs without sacrificing competitive benefits
- Lock in premiums for less market exposure
Exploring the possibilities of locking in premiums can help SMEs ensure predictable expenses and protect their budgets even as the market fluctuates
- Use a broker for competitive price and choice
Working with a broker instead of going direct to insurers can increase choices for SMEs and help secure the best prices.
- Find advisors who tailor low cost, stand-out solutions
A good benefits advisor will help SMEs access a wide range of choices to customise their benefits package. This can help offer benefits that stand out for employees while also keeping costs low.
- Consider the scale advantage when seeking value
Scale can be an advantage for SMEs that are keen to access attractive terms and conditions that make the most of their budget
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What’s the #1 people risk for small and medium-sized enterprises (SMEs)?
Did you know that Mercer Marsh Benefits helps SMEs get the most from their budget?
Our size is an advantage in our ability to negotiate. Our global reach and exclusive relationships help bring you more affordable choices and effective terms and coverage.
Choose Mercer Marsh Benefits to Select More Value.
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