Insurance renewal season myths you should ignore

Written by Wojciech Dochan from Bravo Benefits

“Just select auto-renewal and move on.”

Insurance policy renewal season is often treated as a quick administrative task rather than a strategic event.

But in 2026, that approach could prove particularly costly.

At Bravo Benefits, we are already seeing employers across the Midlands facing particularly challenging renewal conversations ahead of 2026.

With Private Medical Insurance (PMI) premiums forecast to rise sharply (in some cases by 10–50 per cent) and Health Cash Plans also seeing cost increases, employers who simply allow policies to auto-renew may face significant cost increases without any improvement in value or return on investment.

Before blindly accepting your auto-renewal terms, let us unpack (and debunk) some common assumptions that may cost you money this year.

Myth 1: “Premiums are rising - there’s nothing we can do.”

Private healthcare costs are undoubtedly increasing. Several factors are contributing to the 2026 rise:

• Medical inflation remains in double digits, driven by higher surgery, drug and technology costs.
• NHS backlogs continue to increase demand for private care, leading to a higher volume of claims.
• Private providers are investing in infrastructure to meet increased demand, pushing up consultant and hospital fees.

These pressures are impacting insurer pricing across the market.

However, rising premiums do not automatically mean employers must accept the first renewal figure presented. A structured review can often identify opportunities to:

• Refine scheme design to reduce avoidable claims activity.
• Explore alternative underwriting or risk-sharing models.
• Consider community-rated structures where appropriate.
• Enhance preventative support, such as digital GP access or wellbeing initiatives.

In many cases, cost control is less about drastic reductions and more about thoughtful restructuring.

Myth 2: “Renewal is just an admin task.”

Renewal is often treated as routine. In reality, it is one of the few strategic windows employers have to reassess the cost, design and suitability of their plan.

Automatic renewal typically reflects claims experience, medical inflation and insurer pricing pressures. It does not automatically reflect whether the scheme still aligns with your workforce needs or wider wellbeing strategy.

Advisers consistently find that employers who begin reviewing arrangements several months in advance retain far more flexibility than those who wait until final terms are issued.

Myth 3: “Switching providers will disadvantage employees.”

Concerns about disruption often discourage employers from reviewing the market.

However, underwriting options such as Continued Personal Medical Exclusions (CPME) or Continued Moratorium can help facilitate smoother transitions between insurers without disadvantaging employees for pre-existing conditions.

With appropriate planning and communication, change can be managed carefully and responsibly.

Myth 4: “Our Health Cash Plan doesn’t need reviewing.”

Health Cash Plans are frequently left untouched for years. Yet workforce demographics, health needs and wellbeing strategies evolve.

Periodic reviews commonly uncover:

•  Outdated benefit structures.
•  Benefits that are heavily used and driving costs.
•  Benefits that are rarely used and offer limited perceived value.
•  Cover levels that no longer reflect workforce makeup.

A review process allows employers to rebalance benefits so that spend delivers meaningful value for the employee and the employer, rather than simply continuing by default. If the plan is more useful, employee uptake will improve, leading to improved outcomes for everyone involved.

A strategic moment, not just a deadline

In 2026, the most expensive option for many organisations may be inaction.

Allowing PMI or Health Cash Plans to auto-renew without scrutiny can result in significant cost increases for unchanged cover. By contrast, employers who explore their options early typically retain greater negotiating leverage and more design flexibility.

At Bravo Benefits, we are encouraging employers to treat renewal as a governance checkpoint rather than a paperwork exercise. To support this, we are offering a complimentary, no-obligation review of existing PMI and Health Cash Plan arrangements. The purpose is straightforward: to provide clarity on cost drivers, market positioning and potential alternatives before renewal terms are locked in.

Renewal season should not simply prompt the question, “What is our increase?”

It should prompt the more strategic one:

“Are we actively managing the long-term sustainability of one of our most valued employee benefits?”

Bravo Benefits is an independent employee benefits consultancy, supporting employers across the Midlands with strategic advice on PMI, health cash plans and wider wellbeing provision.