Many thanks to Benefits Canada for publishing my latest article on what we saw in 2019 and earlier with respect to premium benefits cost trends. All too often, we are hearing from Insurers and those publishing their ‘trend surveys’ that high single digit costs escalations should be expected; given high cost drugs, etc. Then, not surprising this same doomsday scenario is used as justification for passing on double digit premium increases.

We as Consultants/Advisors, need to use empirical evidence from our own books of business to inform Plan Sponsors and their Insurers that costs are in fact keeping pace with inflation and in some cases (as in our book of business and that of our colleague Dave Patriarche), we learn that cost escalations are infact well below inflation.