The Annual Health Insurance Battle — It’s Time for a New Strategy
Every year, international schools brace for the inevitable: another renewal, another big increase, another difficult budget conversation. But for many, this isn’t just a one-off challenge — it’s an endless, exhausting and unsustainable cycle that repeats year-after-year-after-year.
And the worst part?
Most schools don’t even have a real strategy to manage their faculty health insurance. Instead, they rely on reactionary tactics that don’t actually work.
Common “Strategies” That Don’t Work
❌ Switch Insurer Every Year
The logic is simple — move to a new insurer that offers better pricing. But the reality is far more complex. Insurers often offer low first-year rates to win business, only to increase premiums significantly in year two once claims come in. Meanwhile, faculty and HR teams suffer from the constant disruption of changing providers, networks, and processes.
READ MORE >> “Cheaper” Health Insurance Costs You More in the Long Run
❌ Absorb the Increase
Some schools just take the hit and find a way to stretch their budget. The problem? With global medical inflation projected at 10%+ again for 2025 (and higher than that in many markets), that’s an unsustainable approach. Eventually, something has to give — whether it’s staff salaries, facility investments, or slashing benefits.
❌ Self-Insure Outpatient Cover
Some schools try to cut costs by self-funding outpatient benefits, rather than paying an insurer for them. While this can sometimes work, it shifts financial risk to the school. What happens if claims exceed expectations? What if one faculty member needs extensive outpatient treatment? Self-insuring may save money in low-claims years, but it exposes schools to major financial risk in high-claims years.
READ MORE >> Self-Funding Out-patient Benefits vs. Insurance: A Costly Gamble?
❌ Hope for the Best
Many schools simply cross their fingers and hope that next year will bring fewer major illnesses, fewer claims, and a smaller renewal increase. This is essentially gambling with the budget. Hope is not a strategy — and all it takes is one major medical case (like cancer or a serious accident) to blow that hope apart.
It’s Time for a New Strategy — A Smarter, More Proactive Approach
At One World Cover, we take a proactive, data-driven approach to managing health insurance costs. The schools we work with don’t just react to rising costs — they control them.
Here’s how we help them do it:
✅ Budgeting for Medical Trend — But Beating It
We advise schools to conservatively budget for medical trend (typically 10%+ per year) as part of their long-term financial planning. But with our strategies, our clients consistently beat this trend — averaging low single-digit increases over multiple years. In the example below from an actual One World Cover client with schools in China and the UAE, their health insurance premiums increased by just 15% over the 14 year period from 2020 to 2024. That’s pretty amazing in a world of 10% year-on-year medical trend.
READ MORE >> One World Cover 2025 Medical Trend Report
✅ Claims Data Transparency
We provide schools with monthly claims reporting and real-time insights, so they see exactly where their money is going. No more mystery renewals — schools understand their claims experience and take action before renewal season.
✅ Strategic Benefit Design
We work with schools to balance cost control with faculty satisfaction — ensuring that benefit changes are smart and sustainable, not just reactionary cost-cutting.
READ MORE >> 3 Steps to Drastically Reduce your Group Health Insurance Premiums Without Changing Insurer
✅ Proactive Cost Containment
We help schools keep costs under control – international schools that follow a proactive approach to cost containment with structured, data-driven strategies have kept their annual increases to low single digits, while those without a strategy have seen hikes of 12-15% on average. Holding your insurer accontable, taking a long-term view ensures financial sustainability and protects faculty well-being.
READ MORE >> Your Health Insurer is Not Doing Enough to Manage Your Healthcare Spend — Here’s How to Fix That
✅ Long-Term Planning, Not Last-Minute Scrambles
With a multi-year strategy, OWC school clients stay ahead of renewals rather than panicking every 12 months. This means fewer shocks, better negotiations, and long-term cost predicability and sustainability.
READ MORE >> Stay Ahead of Medical Inflation – Build Your School’s 3 Year Health Insurance Strategy Now
✅ Early Renewal Offers
OWC school clients receive their renewal offers by mid-March at the latest, and often as early as late December or January. This allows ample time to evaluate options, negotiate terms, and make informed decisions on benefits or insurer changes if needed. Early planning prevents last-minute disruptions — such as forced insurer switches during the summer break — ensuring stability, faculty confidence, and smooth transitions year-after-year.
Take Control of Your Renewals — Break the Cycle
International schools that work with One World Cover stop the renewal panic. They plan smarter, control costs, and get better long-term results. If your school is stuck in the same old cycle, let’s talk. We can help you finally take control of your health insurance costs.
This isn’t just about changing strategy — it’s about changing the game. Are you ready to take control?
Contact us today to start building a smarter, more sustainable insurance strategy.
Michael Pennington, Customer Experience Director, One World Cover – [email protected]
