It’s tempting to think the lowest premium today means the best value tomorrow. With group benefits, constantly shopping for a new insurer often costs more than simply partnering with a fair-priced insurer and staying put.
Here’s a why. (This example is from averages I have seen over 20+ years):
- Using an 8 year frame and the example of an employer staying with a reasonably priced insurer who’s average renewal was 4.5% paid $98,021 in total premiums.
- Over that same 8 years, using premiums from companies who went for quotes every 2 – 3 years, to chase the lowest price, ended up paying $103,101 — over $5,000 more.
The reason? Frequent changes may deliver short-term cuts from insurers who want to “buy your business”. Insurers always right price after initial discounts, often recoup costs and usually establish new reserves. This costs you money and time. We’ve seen renewals with 72% increases following a switch to save money. These surprises create budgeting headaches, disrupt employee confidence, and often undo earlier savings.
At Naviguide, we help employers take the smarter path. By aligning our clients with insurers committed to fair pricing, we ensure your benefit dollars are more efficient for the long run. That means:
- Predictable renewals.
- Less disruption for you, your HR team and your employees.
- Insurance partners who are likely to make exceptions because you have shown you are worth it.
At Naviguide we have processes in place to help our clients have continued fair renewals over the long term. This allows them to focus on their core business to save money & time. Give us a call. We are happy to explain the differences.
