What's Happening?
As 2025 concludes, brokers are preparing for significant changes in employer benefits planning for 2026. Key trends include the 'forever layoff' cycle, where employers are opting for smaller, more frequent staffing reductions. This trend is driven by the need for labor efficiency and the perceived value of artificial intelligence replacements. Additionally, the rise in healthcare costs is prompting employers to reconsider individual coverage health reimbursement arrangements (ICHRAs). Employers are also demanding stronger risk management support from brokers, with 94% expecting robust guidance but only half feeling satisfied with current offerings.
Why It's Important?
These shifts in employer benefits planning have broad implications for the U.S. workforce and the insurance
industry. The 'forever layoff' cycle could lead to increased job insecurity and affect employee morale. The reconsideration of ICHRAs indicates a potential shift in how healthcare benefits are structured, impacting both employers and employees. Brokers who can adapt to these changes and provide effective risk management support will be crucial in helping employers navigate the evolving landscape. This adaptability will be key to maintaining client relationships and staying competitive in the market.
What's Next?
Brokers will need to enhance their operational processes to manage the increased volatility in workforce changes and benefits updates. This includes improving billing accuracy and reducing manual errors. As healthcare costs continue to rise, brokers should be prepared to advise employers on the tradeoffs of different benefits models. Additionally, brokers must strengthen their risk management offerings to meet employer expectations. By staying proactive and flexible, brokers can position themselves as valuable partners in the benefits planning process for 2026 and beyond.
