Let’s face it, seeing your benefits budget climb while you’re trying to maintain a happy, healthy workforce isn’t exactly the highlight of any HR professional's day. Soaring premiums for medical and protection insurance are putting serious pressure on businesses, with reports suggesting annual increases of 15% to 25%. If you’re struggling to balance staff expectations with financial constraints, rest assured, you’re not alone.
Costs for private medical insurance, group income protection, and critical illness cover are rising faster than general inflation. A surge in claims, greater usage, and the post-pandemic spotlight on employee wellbeing have created a perfect storm for rising costs. Yet here’s the challenge: staff value these benefits more than ever. Studies reveal that 88% of employees now see health-related benefits as a key factor in job selection, while two-thirds of younger workers say health cover is the benefit they value most.
The silver lining? There are effective, strategic ways to manage cost increases without stripping back your benefits offering. It’s not just about cutting spend—it’s about smarter planning. Here are seven actionable approaches to stay ahead of rising premiums while keeping both your finance team and your workforce on side.
When did you last properly audit your benefits package? You might discover expensive add-ons sitting unused while your people cry out for different support entirely.
How to make it work:
Top tip - Treat your benefits audit like a health check for your entire programme. You can't fix what you don't measure.
Flexibility isn't just trendy, it's financially smart. Why pay for expensive family cover for single employees, or comprehensive travel insurance for homebodies?
How to make it work:
Top tip - When employees choose their benefits, they value them more, and you pay for what actually gets used.
Smart platforms help you spot trends before they become expensive problems. Real-time dashboards keep you agile for early renegotiation or strategic shifts.
How to make it work:
Top tip - Data-driven decisions beat gut instinct every time when it comes to benefits spend.
Prevention beats cure, especially when it comes to claims costs. Proactive wellbeing support reduces insurer risk and keeps premiums manageable.
How to make it work:
Top tip - Healthy, supported employees mean fewer expensive claims and happier insurers.
Early engagement with brokers and insurers opens doors to better arrangements. Stop treating renewals like a tick-box exercise and start negotiating strategically.
How to make it work:
Top tip - Insurers appreciate proactive clients. Use that to your advantage in negotiations.
Group risk benefits punch above their weight for value. Don't overlook salary exchange arrangements either—National Insurance savings can be reinvested strategically.
How to make it work:
Top tip - Sometimes the most appreciated benefits are the most affordable ones. From salary exchange options to flexible lifestyle benefits, FlexGenius’s platform helps you unlock maximum value for minimal spend.
Monitor continuously, don't wait for renewal shocks
Quarterly reviews beat annual surprises every time. Regular monitoring gives you early warning signs and negotiating leverage.
How to make it work:
Top tip - Stay ahead of the curve instead of reacting to it.
Rising premiums don't have to mean reduced benefits or blown budgets. With the right mix of technology, proactive planning, and employee engagement, you can preserve value while keeping costs manageable.
The key is treating benefits as a strategic investment, not just an annual expense. When you combine data-driven decisions with genuine employee engagement, everyone wins: your people stay protected, and your budget stays intact.
At FlexGenius, we help organisations build cost-effective, flexible, and engaging employee benefits strategies. Our platform brings together health, lifestyle, and financial wellbeing options in one smart solution, designed to support happier, healthier teams while keeping control of rising costs.
Discover how FlexGenius can future-proof your benefits strategy.
For a deeper dive into proactive health support, read our article: Tackling today’s top physical health challenges with a future-focused wellbeing strategy.
For further information, please email enquiries@avantus.co.uk or call 0800 652 4745.