How to Compare Your Plan to Competitors, Industry Standards, and High-Performing Employers
Executive Summary
If you’re not benchmarking your group benefits plan, you’re managing in the dark.
Plan sponsors across Canada routinely ask:
- “Are we competitive enough to attract top talent?”
- “Are we overpaying for the benefits we offer?”
- “Are our co-pays, caps, and coverage levels in line with market norms?”
- “Is our plan more or less generous than our competitors’?”
The truth is: without reliable benchmarking, you can’t answer these questions. And that makes it difficult to manage cost, make strategic design decisions, or explain the value of your plan to executives or employees.
In this article, we’ll cover:
- What to benchmark and why it matters
- Sources of benchmarking data (and which to trust)
- How to compare your plan design, pricing, and employee cost share
- How to use benchmarking in renewals, plan redesigns, and C-suite presentations
- How to develop your own internal benchmarking framework
What Is Benefits Benchmarking?
Benefits benchmarking is the process of comparing your organization’s group benefits plan to:
- Industry standards
- Geographic norms
- Organizational peers
- High-performing employers
It includes comparisons of:
- Plan design
- Coverage levels
- Employee contributions
- Cost per employee
- Claims experience and renewal outcomes
Why Benchmarking Is a Strategic Advantage
Done well, benchmarking enables you to:
- Validate your plan’s competitiveness
- Justify design changes or plan enhancements
- Support renewal negotiations
- Provide data for HR strategy and budgeting
- Identify overcoverage or inefficiencies
- Communicate value to employees and leadership
If you’re preparing for renewal, running an RFP, or reviewing compensation strategy—benchmarking is your best friend.
What to Benchmark: The Key Categories
| Category | Why it Matters |
|---|---|
| Plan design | Reveals gaps or over design |
| Coverage levels | Aligns with expectations by industry/region |
| Premiums and costs | Ensures fair insurer pricing |
| Cost sharing | Confirms equity and competitiveness |
| Claims ratios | Tracks performance over time |
| Value-added services | Assesses digital tools, wellness, EAPs, etc. |
Where to Get Benchmarking Data
Most reliable sources:
- Benefitsconsultant.ca
- Advisory firms (custom or syndicated benchmarks)
- Insurer reporting (aggregated by region, industry, or size)
- Industry surveys
- Consulting partners or TPAs
- Your own historical data
Tip: Ask your advisor or insurer for custom benchmarking cuts by industry, geography, or group size.
Sample Benchmarks by Benefit Type
| Benefit Type | Typical benchmark |
|---|---|
| Drug coverage | 80%-100% coinsurance, $10-$15 deductible |
| Dental (basic) | 80%-100% coinsurance , annual maximum $1,500-$2,500 |
| Dental (major) | 50% coinsurance, annual maximum included in total |
| Orthodontics | 50% coinsurance, $2,000 lifetime maximum (usually for children only) |
| Paramedicals | $300-$1,000/practitioner, $1,200-$1,500 combined maximum |
| Vision | $150-$250 every 24 months |
| Long-term disability (LTD) | 66.67% of monthly income to age 65, 120 elimination period, $5,000 monthly maximum |
| Health Spending Account (HSA) | $250-$1,000/employee/year |
Pricing Benchmarks: Premiums, Claims, and Admin Fees
| Metric | Typical Benchmark |
|---|---|
| Cost/employee (health and dental) | $2,500-$5,000/year |
| Insurer administration fees (ASO plans for health and dental) | 5%-12% of paid claims |
| Stop-loss premium | $10-$20/employee/month (varies by threshold) |
| Target loss ratio (insured benefits) | 75%-85% depending on group size and product line |
| Trend rates used by insurers | 8%-12% for health; 5%-8% for dental |
Ask your advisor how your current insurer compares to these figures.
Benchmarking Employee Cost Sharing
| Benefit Type | Typical Employer Share |
|---|---|
| Health and dental | 70%-100% |
| LTD | 0% or 100% (if employees pay 100% get a tax-free benefit) |
| Life and Accidental Death & Dismemberment (AD&D) | 100% employer-paid |
| HSA | 100% employer-funded (optional) |
| Wellness Spending Account (WSA) | 100% employer-funded (optional) |
Trend: More employers are moving to 75–85% employer-paid for health/dental, with optional top-ups via HSAs or voluntary products.
Using Benchmarking in Renewal and Negotiation
Benchmarking gives you:
- Leverage at renewal (if your rates are high for the coverage offered)
- Support for plan redesign (e.g. adjusting coinsurance or caps)
- Justification for plan upgrades (to compete for talent)
- A neutral comparison tool (to depersonalize tough decisions)
Benchmark data helps shift the conversation from opinion to evidence.
Benchmarking Against High-Performing Employers
Don’t just benchmark to average—benchmark to best-in-class:
| Category | High-Performing Employer Benchmark |
|---|---|
| Plan design | Modular or tiered by role/life stage |
| Digital tools | Mobile claims, live chat, virtual care |
| Mental health | Extended psychology coverage, digital Cognitive Behavioural Therapy (CBT) |
| Total rewards integration | Benefits + retirement + wellness dashboard |
| Flexibility | HSA’s + WSA’s + Personal Spending Accounts (PSA’s) |
Use “stretch” benchmarking to guide your 2–3 year benefits roadmap—not just current-state evaluation.
Building an Internal Benchmarking Framework
Even if you don’t have access to external data, start by:
- Reviewing past 3–5 years of renewal data
- Tracking per capita cost trends
- Comparing plan design by employee type
- Collecting feedback from employees about plan value
- Benchmarking across divisions or business units
Use this framework to evaluate annually and guide strategic decisions.
Final Thoughts
Benchmarking turns guesswork into strategy.
By comparing your plan to the market—and to your competitors—you can make smarter decisions, negotiate more effectively, and ensure your benefits plan is a true asset in your talent and financial strategy.
If you’re overdue for a benchmarking review—or want to compare your plan to industry leaders—we’re happy to help.