You get a quote from an insurer and it feels high. You negotiate hard. They are hungry for business, so they give you a discount just to win the account. Everyone walks away smiling.
Then renewal comes. Claims are high. The insurer realises the numbers don’t work and proposes an even higher premium than the original quote. You feel cheated and start shopping again. Another insurer gives you a “better deal” — and the cycle repeats.
On paper, you’re saving money. In reality, you’ve entered a rat race that slowly works against you, your employees, and your finance team.
Defence Mode #1: You Threaten to Leave
The first time the insurer proposes a steep renewal, you push back. You wave a competitor’s quote and say, “We’re reviewing options.”
The insurer doesn’t want to lose you, so they defend their position with a discount — but quietly start tightening in the background:
- Claims reviews become stricter. What was easily paid last year now needs “extra documentation.”
- Grey areas become hard denials. That borderline condition or expensive medication is now “not payable under current benefits.”
- Turnaround times drag. Your HR spends more time following up and explaining delays.
Defence Mode #2: You Actually Leave
You get frustrated and decide to switch providers. New logo, new card designs, fresh energy — and a lower price.
But the industry is small. The new insurer knows your claims history and knows the previous insurer surrendered margin to keep you. They assume you might switch again next year.
So they defend upfront:
- Reduced scope disguised as a great deal. Lower price, but with quiet cuts in limits, exclusions, or hospital networks that most people won’t notice at first glance.
- Big ticket claims face friction. High-cost cases get delayed, questioned, or partially paid to protect their margin.
- Low service investment. You are not viewed as a long-term partner, so they don’t build the internal muscle to support you deeply.
Who Is Actually Winning?
Not you. Not your employees. Not even your finance team.
You “save” on price but lose in three quiet ways:
- Value. The cover looks cheaper, but staff can’t access some critical care when they truly need it.
- Trust. HR keeps explaining benefit changes and declined claims they never asked for. Morale quietly takes a hit.
- Continuity. Every year becomes a reset — new provider, new rules, new frustrations.
The result: Claims noise goes up. Employees complain. HR is firefighting. Finance questions ROI. Leadership asks, “Didn’t we sort this last year?”
How Do You Get Out of the Rat Race?
1. Stop Treating Insurance Like a Yearly Transaction
Jumping from one insurer to another every renewal might feel tactical, but it keeps you blind. You lose historical data, you reset negotiations, and your leverage never compounds.
2. Build a Relationship That Gives You Visibility
The longer you stay and engage, the more insight you gain:
- Claims patterns over time
- Staff with higher health needs or frequent claims
- Abuse points in the benefit design or provider network
- Which hospitals or services drive most of your spend
That data is your real bargaining chip — not to demand blind discounts, but to redesign benefits intelligently.
3. Use Your Insurer as a Health Strategy Partner
Instead of only asking, “How much can you cut the price by?” start asking:
- Which health issues are slowing down our teams — and how do we address them early?
- Where are we losing hours to untreated or late-treated health problems?
- How can we turn medical data into better productivity, not just claim payments?
A good insurer will lean in when they see you are building a long-term, data-driven relationship — not shopping for the lowest quote every year.
One Last Thought
You don’t fix insurance costs by endlessly chasing cheaper quotes. You fix them by building a system that makes your people healthier, faster, and more productive year after year.
At the highest level, employee health isn’t just a benefit line. It’s a performance strategy. If you’re always negotiating the price, you’re never solving the real question:
How do we turn health into output for our business?
If you’d like help reviewing your current medical cover and understanding where you might be “saving” on price but losing on value, you can reach out to us and we’ll walk you through it in plain language.