After 15 years in the benefits space, I can confidently say this is the most unpredictable renewal season I’ve ever seen.

If you’re a benefits or finance leader in tech, you’ve probably seen renewal numbers that don’t make sense. This year, even the most seasoned teams are asking: What’s really driving these increases?

The truth is there’s no single cause. It’s all of it: COVID catch-up, inflation, claims volatility, carrier strategy shifts, and ongoing market consolidation. Each factor on its own would be manageable. But all of them at once create a perfect storm that’s testing the limits of every benefits budget.

Brokers have always seen renewals fluctuate. What’s unusual this year isn’t just the size of the increases, it’s how widespread they are.

In past cycles, we might have seen a handful of outliers, with most renewals landing in a predictable range. This year, volatility is the norm. Employers that once considered a single-digit renewal high are now relieved to land anywhere near historical averages.

It’s a tough environment for CFOs and HR leaders alike. The numbers look inconsistent across carriers and regions, and the explanations can feel equally varied. But the reality is that the whole ecosystem — claims, pricing, and plan design — is recalibrating at the same time.

When budgets tighten, the first instinct is to negotiate harder. And that makes sense — every organization wants to protect its bottom line. But in this market, negotiating a lower renewal without addressing the underlying cost drivers may only buy temporary relief.

For many employers, the current strategy sounds something like: “We’ll take the increase this year and keep things stable for our employees. We’ll look at making changes next year.”

That approach is understandable, but it’s also risky. Deferring tough decisions doesn’t make them disappear. It just compounds the challenge at the next renewal. Kicking the can down the road today means rolling it uphill tomorrow.

In a year like this, the role of a benefits advisor has to expand. Negotiation is still critical, but it’s no longer enough on its own.

A Broker’s Expanded Role: Exploring Every Option

At Sequoia, our approach is to show clients every lever available, not just the familiar ones. That means exploring multiple paths at once — plan design changes, network adjustments, funding mechanisms, and emerging cost-management solutions.

There’s no silver bullet. What works for a 100-person company on a level-funded plan may not make sense for a 1,000-person company that’s self-funded. But what’s consistent is the need for employers to see the full picture and understand the tradeoffs of each decision, both short-term and long-term.

A good broker’s job isn’t just to win the best rate this year. It’s to help you make decisions that support a sustainable benefits strategy over the next several years, because the companies that will come out stronger from this renewal cycle are the ones using it as a turning point, not a temporary fix.

If your benefits strategy hasn’t evolved in the past few years, now is the time to start rethinking it. Begin reviewing your utilization data early next year. Ask how your plan design aligns with your current workforce and budget. And partner with your broker to model what the following year’s renewal could look like before it lands on your desk.

While no one can fully predict the next renewal season, one thing is clear: the organizations that plan now will have more choices later. But that also creates opportunity — the chance to design a strategy that balances cost, competitiveness, and care for your people.

As brokers, our job is to help you see all the options on the table and make the best decisions for your business — this year and the years ahead.

Start Building a Smarter Benefits Strategy Today

Want to explore your options before your next renewal hits? Connect with a Sequoia advisor to start building a strategy that balances cost, competitiveness, and care — not just for this year, but for the long haul.

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Tanner Herpst — Tanner is Sequoia's director of client service. He has spent over 15 years in the employee benefits space, with experience spanning implementation, consulting, and client service. Today, he supports Sequoia’s mid-market service team, working with both internal team members and clients. His approach is rooted in collaboration, problem-solving, and a deep understanding of the evolving needs of employers. He’s currently based in Southern California but spent many years in the Washington, D.C. area, which shaped his perspective and appreciation for regional differences in the benefits landscape.