What was once a customary inclusion in an employee’s CTC is now evolving into a strategic component. The idea of group health cover might not be new, but the way benefits are structured and designed today definitely is. India’s corporate structure is changing with the fresh influx of companies and so are the workplace dynamics. Employers, therefore, are rethinking their approach to employee wellness and healthcare. Beyond medical coverage, companies are exploring mental wellness programs, preventive healthcare benefits, and flexible coverage options tailored to diverse workforce needs.
This shift is particularly pronounced for SMEs and MSMEs that have to perform a delicate balancing act between budget and benefits. After all, competitive benefits play a crucial role in talent acquisition and retention for them. Meanwhile, the rise of the gig economy is encouraging the insurance industry to extend coverage beyond the traditional framework of corporate insurance. As businesses navigate this evolving space, customisable health solutions are emerging as the answer for diverse employee needs.
From basic medical cover to holistic wellness
Traditionally, corporate insurance policy used to be a need-based coverage focused on hospitalisation and basic medical expenses. With rising awareness around preventive healthcare, companies are now integrating holistic wellness programs that include teleconsultations, mental health support, fitness incentives, and stress management solutions. According to industry reports, over 70% of employees now prefer organisations that offer comprehensive wellness benefits beyond conventional medical insurance.
Similarly, teleconsultation, which was a crucial post-pandemic addition, provides employees with instant medical advice, reducing absenteeism and improving productivity. Mental health programs are gaining traction, with companies offering therapy sessions, stress management workshops, and meditation programs. A study by PwC found that investing in employee experience, including well-being initiatives, can lead to savings of up to 12.6% of an organization’s revenue. These savings are attributed to increased productivity and reduced absenteeism and turnover. Fitness incentives, such as gym memberships, wearable fitness trackers, and wellness reimbursements, encourage employees to adopt healthier lifestyles. These initiatives help companies reduce long-term medical expenses by preventing lifestyle diseases and ensuring a healthier workforce. The growing emphasis on holistic well-being marks a shift from reactive to proactive approach to health insurance.
Affordable customisation for SMEs and MSMEs
Small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) have traditionally faced challenges in providing comprehensive health insurance to their employees. Unlike large corporations with extensive budgets, SMEs and MSMEs must operate within tighter budgets while ensuring workforce well-being. However, new-age Insurtechs continue to enable cost-effective and flexible group insurance plans that are tailored to the specific needs of smaller organisations.
Businesses can now select modular policies based on workforce demographics and financial capacity. For example, an SME with a young workforce may prioritise outpatient benefits and wellness programs, while an MSME’s employees might want parental coverage included. InsurTech platforms help accommodate this customised coverage for diverse needs. They also streamline policy management, automate claims processing and offer AI-driven risk assessments to ensure affordability and accessibility.
New-age benefits for an evolving workforce
Workforce demographics and expectations are rapidly evolving. Inclusivity and flexibility are now central themes, with companies expanding their benefits to cover new-age employee needs. A few examples are – inclusion of live-in partners, same-sex partners and transgender employees in corporate insurance policies. Corporate insurance is also moving beyond conventional definitions of ‘family’ by accommodating diverse familial structures. While this is still in nascent stages, it still reflects the gradually changing social norms.
The gig economy is another area driving change. With nearly 15 million gig workers in India, traditional employment-linked benefits no longer suffice. Insurers are exploring new models that provide flexible, pay-per-use health plans designed for gig workers, allowing them to access essential healthcare services without being tied to a single employer. While still in its early stages, these kinds of insurance benefits are expected to gain traction as gig work continues to grow.
Large multinational corporations are not far behind either. Many of them are setting benchmarks by offering global insurance models that cater to different cultural and social norms. Recent reports indicate that 65% of companies are re-evaluating their insurance policies to align with DEI (Diversity, Equity, and Inclusion) initiatives.
Group term cover: Extending security beyond employment
Financial security stretches beyond employment tenure. Realising this, many organisations now provide group term life insurance to ensure that an employee’s family receives financial protection in case of an untimely demise. Additionally, some corporate insurance plans allow employees to convert group policies into individual ones upon exit, ensuring uninterrupted coverage and preserving accumulated benefits.
With businesses increasingly prioritising employee well-being, customisable health insurance is set to evolve further. The focus will remain on striking a balance between affordability and comprehensive benefits. Employees across industries, regardless of company size or work model, are striving to offer healthcare solutions that suit the diverse needs of their employees.
Authored by: Sajja Praveen Chowdary, Director, Policybazaar for Business
