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Employee benefits market - latest trends
The employee benefits market continues to experience high levels of activity.
Here’s the latest pricing trends Mercer Marsh Benefits (MMB) is seeing across some of the core covers.
Plus, some top tips to help you navigate the market.
Group private medical insurance (PMI)
In 2024 we saw an average rise of 23% in premiums for PMI whereas so far 2025 renewals are indicating average rises of around 15%.
Positive news but it should be noted that we are early in the year, and it is important to note that this can vary from business to business.
In particular, we are witnessing much higher increases for some age rated schemes.
Top tip: A benefits inventory can help unpick benefit overlap across all product types – identifying savings opportunities.
Understand your claims drivers and consider increasing focus on preventative solutions.
Group critical illness
In 2025, we have observed significant increases in insurance rates, averaging 24%.
However, given the smaller size of this market, the effect of a few providers will be more pronounced.
Additionally, the entry of a new provider in the group critical illness market is expected to enhance competition and help lower rates.
Top tip: Undertake regular marketing of this benefit to mitigate increases in insurance rates.
Understand your demographic health risks and benefits to meet the need of your workforce considering the full continuum of preventative, through to diagnosis and then living with chronic illness.
Group life assurance
Insurance rates for both 2024 and so far in 2025 are indicating increases of around 8%.
Savings can still be made however, through market reviews as competition between providers remains strong.
Top tip: Savings can still be made through market reviews as competition between providers remains strong.
Understand the impact of sick employees on the cost of this benefit and ensure health and wellbeing interventions reduce this risk over the longer term and how insurance can be the vehicle to provide more support to your people.
Group income protection
Throughout 2024 and 2025, there were minimal increases in insurance rates.
This strongly indicates that a market review could lead to savings on rates.
Additionally, we are aware that several providers are eager to insure this product.
Top tip: Actively use the claims rehabilitation services available to reduce claims incidence and ultimately improve the cost and attractiveness to the market of your policy.
For more information on the state of the market, download MMB’s Market Insights Report.
Supplied by REBA Associate Member, Mercer
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