An increase combines market trend and your own group’s experience. They are handled differently.
The carrier states its ask in writing. We read it against the datum and the market.
What is inside an increase.
Most renewals blend several things.
Market Trend
Costs rise across the market, and the carrier prices that in.
Your Group’s Claims
Your own claims history can push the number up or down, more for larger groups.
The Carrier’s Margin and Rules
Pooling, risk charges and rating rules sit on top, and they differ by carrier.
How we read it.
Start from the carrier’s own written ask.
The Ask in Writing
We ask for the renewal basis in writing and read it line by line.
Against the Datum
The ask is measured against the held-census baseline.
Against the Market
We test it against what other carriers would charge for the same group.
What that makes possible.
Each part calls for a different response.
Trend
Not much is negotiable, but plan design can offset it.
Experience
Understanding your claims opens options, including funding.
Margin
This is where negotiation and market tests matter most.
Questions Employers Ask About This
Can an increase be negotiated?
Often, in part. Which part depends on what is driving it.
Do small groups get experience-rated?
It depends on the carrier and the size of the group. We read the rating basis for you.
What if the carrier will not explain?
We say so, and we take the group to market.
Related guides.
From Renewals to Results: The Broker Playbook
The full playbook.
Held-Census Repricing: Compare Renewals Like for Like
Compare on the same census.
Carrier Move vs. Negotiation: Naming the Win
Which win is which.
Want this applied to your renewal?
Send us the renewal and we will run it through DATUM and show you where the number comes from.
Your renewal letter
Your census
Your current plan documents
Your renewal date
Rough answers are fine. We build the numbers from there.
Laws and rules referenced
Employee Benefit News: Renewals to Results — Opinion piece on brokers moving from plan shopping to data-driven advisory work.
An independent employee benefits consulting firm. We look at the entire benefits program — cost, plan performance, risk and administration.
Switch to CFH. Unhappy with your broker? Your employees won’t notice. You will. →
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