Well, they also need to ensure they aren't spending past their premiums coming in...

Alot of insurers the past few years have actually gone bankrupt from ballooning costs and claims.

So, they want costs to go up, so the next year they can up the premiums, so they can then up their admin spend, but the costs still need to below the premium. And they can't just up the premium without an associated rise in cost, because groups are owed their premium money back if it isn't paid out.