With nervous anticipation and mounting excitement TSHBP member school districts wait patiently for their 2024-2025 renewal.
How much will rates decrease they wonder? Is there time to shop around for alternatives or is it too late?
For comparative purposes the 2023-2024 TSHBP rates can be found HERE.
As a rule of thumb renewal rates will be a factor of .70 or .80, or if super aggressive .9. For example, if paid loss ratio is 100% the renewal factor will be +25-42%. If paid loss ratio is 80% the renewal factor will be +114-125%. If the renewal is aggressive (scant regard for reserves) under either loss ratio the renewal action will be a pass or no more than +15%.
We expect this renewal to be another battle between marketing and underwriting. If history repeats itself marketing will carry the day. If that comes to pass, all bets are off as far as predicting what the TSBBP renewal will look like this year.
Last year’s TSHBP renewal was hefty – +30% on the Aetna portion of the plan offering and +15% on the other plan portion. But that may not have been enough as we are hearing from some TSHBP districts they are being assessed additional monies to cover ytd plan deficits.
Our best guess is an increase of 10% although we have no basis in determining that. Just a guess based on a hunch.
At this point in time the TSHBP underwriter knows exactly what the renewal should be. The question is when will it be released? In marketing timing is everything.
