How to Reduce Group Insurance Premiums Without Cutting Cover
- Covermate Life
- Sep 25
- 2 min read
Providing group insurance for employees is an important way to protect both your staff and your business. However, for many companies, the cost of premiums can be a significant expense. The good news is that you can reduce premiums without compromising the level of protection your employees receive.
At Covermate Life, we help businesses review their policies and find ways to optimise costs while keeping staff fully covered. Here’s how.
1. Review Your Current Group Insurances Policy
Start by assessing your existing group insurance plan:
Are all types of cover necessary for your workforce?
Are there employees covered who don’t require certain benefits?
Are the coverage levels appropriate for different employee groups?
A thorough review often reveals opportunities to adjust cover where it’s not needed without affecting overall protection for staff who require it.
2. Benchmark Against Other Policies
Insurers price group insurance differently. By comparing your policy with other providers, you may find more competitive premiums for the same level of cover.
Consider working with a broker who can benchmark your policy against the market.
Make sure to compare the features and benefits, not just the cost, to ensure your employees are still adequately covered.
3. Tailor Cover to Employee Needs
Not all employees require the same type or level of cover. You can reduce costs by implementing:
Tiered Coverage: Different levels of cover for staff based on age, role, or risk profile.
Optional Benefits: Allow certain employees to opt-in for additional coverage rather than providing the same for everyone.
This approach ensures that your business isn’t paying for unnecessary coverage while still protecting those who need it most.
4. Encourage Employee Awareness
Educating employees about the value of their cover can help reduce unnecessary claims and cost pressures:
Provide clear communications about what’s included in the policy.
Encourage staff to report changes in personal circumstances that may affect coverage needs.
Promote wellness programs that reduce risk factors, such as workplace health initiatives.
5. Negotiate With Insurers
Many insurers are open to negotiation, especially for larger groups:
Ask about volume discounts or group-specific pricing.
Explore flexible premium structures or long-term agreements that lock in rates.
Consider combining multiple benefits under one policy for cost efficiency.
6. Conduct Regular Policy Reviews
Group insurance needs can change as your business grows or the workforce evolves. Regular reviews help you:
Identify outdated or unnecessary cover.
Ensure premiums remain competitive.
Adapt the policy to meet the changing needs of your staff.
A regular review, ideally annually, keeps your policy cost-effective without reducing employee protection.
Final Thoughts
Reducing group insurance premiums doesn’t have to mean cutting cover. By reviewing your policy, tailoring coverage to employee needs, benchmarking with the market, and negotiating with insurers, your business can save on costs while keeping staff fully protected.
Covermate Life can help review your group insurance policies, identify savings, and make recommendations to ensure your team is adequately covered without overspending.
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