Employers and consultants should be reviewing private medical insurance arrangements earlier in the renewal process, due to rising premiums.
This warning was given by consultancy firm Cartwright Employee Rewards, who said medical inflation is leading to more complex decisions around renewal, due to spiralling premiums.
It points out that medical inflation is currently at 17 per cent and expected to stay in double digits into 2026.
For many employers, this is translating into sustained increases in PMI premiums, prompting a closer look at how healthcare benefits are structured, funded and supported across the workforce.
Cartwright Employee Rewards group risk and healthcare consultant John Mullally says: “PMI renewal is a perfect opportunity for employers to step back and properly assess their options.
“We are seeing the strongest outcomes where employers take a more strategic approach by looking at how preventative benefits, cash plans with excess options can work alongside PMI to manage claims more effectively and reduce long term costs.
“Early intervention, health screening and better plan design can make a meaningful difference, both financially and in terms of employee outcomes.
“Employers that use the renewal process to properly evaluate their approach are far better placed to protect the sustainability of their PMI schemes and continue offering valuable healthcare support. Taking the time to speak with advisers, understand the options available and avoid defaulting into automatic renewals can make a meaningful difference to both cost control and employee outcomes.”