Navigating 2026: Key Trends Impacting Employer Benefit Strategies

Over the past year, significant legislative changes and shifts in the economic landscape have influenced employer planning strategies for 2026. These adjustments are reshaping expectations for broker partnerships. Three major trends are set to impact the benefits landscape, emphasizing the need for brokers to understand these developments to remain key allies for their clients.

Since 2020, businesses have practiced "labor hoarding" to sustain output levels amid economic uncertainties. However, this tactic is declining as 2025 comes to a close. Organizations are now opting for smaller, frequent staffing adjustments, known as "forever layoffs." In August 2025, over one million layoffs were recorded nationwide, a pattern likely continuing into 2026 due to a focus on labor efficiency and AI-driven workplace integration.

For brokers, such volatility primarily impacts operational processes. With rising employee turnover, managing billing accuracy becomes complex, especially when changes surpass carrier cutoffs or span across systems. This can lead to overpayments, coverage disputes, and administrative burdens, complicating the renewal season.

To thrive in this environment, brokers should normalize volatility and streamline workforce changes with benefits updates, minimizing manual interventions to reduce errors. The more dynamic the workforce, the more robust control systems must be to maintain accuracy and efficiency.

Re-evaluating Healthcare Solutions

With anticipated healthcare cost increases in 2026, employers are reconsidering solutions like individual coverage health reimbursement arrangements (ICHRAs) for cost efficiency and complexity management. In 2024, only 4% of companies offering health benefits allowed employees to purchase nongroup health insurance through ICHRAs. While still minor, these models reflect changing employer preferences influenced by market conditions and subsidies.

Brokers should prepare for clients transitioning between benefits models instead of sticking to a single one. This involves advising on the advantages and drawbacks of each and facilitating plan changes without adding pressure to HR and finance departments.

Elevating Broker Standards

Employers increasingly demand higher standards from brokers as 2026 approaches, particularly in comprehensive risk management support. Although 94% of employers seek in-depth risk management advice, only half feel they currently receive it. This gap is crucial given the escalating cost pressures and the need for rapid decision-making. Brokers providing practical, market-informed risk management strategies will solidify their position as reliable advisors.

In the coming year, workforce volatility, changing benefits preferences, and heightened broker expectations will shape the industry. Brokers must effectively meet these challenges through adaptability and proactive engagement, thereby leading the competition in an evolving landscape.