Market Check Survey: Inflation and the Impact on 2023 Insurance Purchasing

Inflation continues to be an issue for many Americans. High prices are impacting their wallet in several areas. As we near annual enrollment time, inflation fears may impact what and how employees purchase insurance coverage through their employer. In May, we asked businesses if their workers were having a more difficult time affording their benefits than two years ago. Over 47% confirmed their workforce was struggling.

Now, as employers plan their communications for the 2023 benefits year, almost half say they are concerned that the economy will cause employees to reduce the insurance they purchase this year.

We conducted a poll during a webcast on September 22 to get a glimpse of employers’ perspectives on how they feel
employees will change buying habits and how they may help alleviate some of the stress. The results are in the charts below.

Are you concerned that inflation will cause employees to
scale back the insurance they purchase this year?

What change(s) is your company making to help employees who are concerned about insurance costs during this inflationary period?

Key Findings
It is evident from the data above and our prior surveys that there is enough concern amongst business leaders around this issue. In August, companies told us the top priority for their medical offering was focused on limiting the employee’s financial exposure. Employers that limit contribution and deductible increases may avoid having their workforce become underinsured.

Each employee’s insurance needs will be unique. It is more important than ever to provide year-round communication on the employee benefits package to ensure employees are maximizing their coverage.

Employers that can provide plan options, resources, and decision-making support will be better positioned to have a workforce that feels secure in the coverage it purchases. A workforce that is confident with its insurance protection is a workforce that is more resilient, more productive, and more satisfied.

Should you have any questions regarding any of this information or about other avenues to explore, please contact your local Assurex Global adviser.