What do three renewals really add up to?
Each increase builds on the one before it. Enter three years of increases to see where your premium lands.
Three-year renewal compounding
Enter your current premium and the increase for each of the next three renewals.
Your estimate
Estimates only. Results depend on the figures you enter and on your plan documents. Not tax, legal or financial advice.
Why compounding matters
Three increases of 10, 9 and 8 percent are not 27 percent. Each applies to a premium that has already risen, so the total is higher. Budgets that assume a flat trend fall behind quickly.
Using it in planning
Run your budget at your planned trend and at a worse case. If the gap is large, it is time to look at plan design, funding options and the market before the next renewal arrives.
Common questions
Is this a forecast?
No. It shows the math of your inputs. Real increases depend on claims, the market and plan design.
What trend should I plan for?
Plan at the recent average for groups like yours, then test a higher case. We can share what we are seeing.
How do I slow the growth?
Options include plan design changes, a market review, a different funding method and managing high-cost claims.
Should I shop every year?
Many employers review the market each year, even if they renew, so they have a current comparison.
Ask us for a second opinion
Send us your renewal and we will check it against the market and show you your options. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
Unhappy With Your Current Broker?
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Related guides and tools.
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Large Claim Renewal Impact Calculator
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