It’s been reported that the costs of insurance paid out to cover employees has rocketed across Europe. A survey was carried out asking employers what it now costs them to provide insurance benefits, including health insurance for their employees. The answer was a staggering 4.9% increase in 2010. The average was 3.3% overall.

The survey was carried out on 556 employers in 14 European countries, and the benefits offered by them covered a number of keys areas including private medical insurance, critical health insurance and income protection insurance.

When asked why they thought the costs had risen, most believed it was connected with a rise in inflation.

Interestingly, the survey also revealed that in the UK, employers expected just 8% of its employees to contribute to the cost of private medical insurance. In France however, 80% of employees are expected to pay something towards the cost, while on average 46% of employees across Europe were expected to contribute towards the total cost of any package.

Speaking with reporters, Steve Clements a partner for Mercer, who carried out the survey said: “Cost sharing might appear a logical manner in which to mitigate rising bills. That it isn’t widely used reflects not only diverse and established market practices but also employer reward strategies, union negotiations and industry-wide competitiveness.”

He added: “In some countries, tax efficiency and the deductibility of health expenses and insurance premiums affect employer decisions regarding contribution level.”