What’s the #1 people risk for small and medium-sized enterprises (SMEs)? 

Several factors are behind benefits costs’ steady climb. Inflation is putting pressure on medical costs, with global medical claim costs outside the United States projected to rise to 11.7% in 2024, continuing a trend of double-digit increases every year since 2021. ⁽¹⁾ Insurers have also become more selective on who and what they will insure, and people are using private health insurance more often and for more severe claims.

Investing in people is a top priority, so maintaining competitive pay and benefits when costs go up is a major concern. 30% of SMEs noted this concern in our latest People Risk survey, with 37% saying they worry about the impact of rising costs on human resources and other expenses to manage benefits programs.⁽²⁾

Although it’s harder to plan when future insurance premiums and other costs are uncertain, we believe there are four actions SMEs can take to help control costs without sacrificing competitive benefits.

footnotes

(1)   Health Trends 2025

(2)   People Risk 2024