A marked increase has been observed within corporate group health insurance the median sum insured vaulting by 66% from Rs three lakh to a notable Rs five lakh, detailed in a comprehensive study. Accompanying this substantial rise is a two-fold increase in the adoption of flexible benefits plans, customization options that allow employees to tailor their insurance to their specific needs, marking a significant shift in the benefits landscape.
The research, conducted by Plum Insurance, an innovative Insurtech platform, also unveiled a 15% uptick in corporations offering maternity benefits, further solidifying the trend toward more inclusive health coverages. Moreover, there has been an extraordinary 110% surge in businesses providing comprehensive healthcare packages that include both preventive and primary healthcare services, highlighting a new era in corporate well-being initiatives.
The focus points for senior human resource professionals this year gravitate heavily towards the net spend on employee benefits. About 40% of chief human resource officers (CHROs) have pointed out the influence of business environments on benefits budgets. The strain is further compounded by expectations of an 11% hike in premium costs for benefit plans, primarily driven by ongoing medical inflation. The study encompassing feedback from over 4,500 companies shines a light on the state of corporate health benefits in the current business climate.
Abhishek Poddar, the Co-founder, and CEO of Plum Insurance, commented on the findings by saying, “We are in an era where ‘modern benefits’ are correlated directly with an employer’s brand and the retention of their workforce. Our study reveals 76% of employees consider the caliber of benefits a significant reason for either staying or leaving a company.” Poddar emphasized that the conceptualization of benefits had shifted from mere insurance to the broader context of employee health and wellness. Despite economic pressures, employers are showing commitment by implementing sustainable policies to boost employee morale.
The study also sheds light on the value placed on maternity benefits, which have been observed to exceed Rs one lakh in international startups, demonstrating their commitment to supporting family growth. Additionally, accident and disability insurance has witnessed an adoption spree, with Unicorns leading at 90%, international startups at 60%, and an overall median at 45%.
Term life insurance demand has been on the rise with Unicorns providing coverage to about 75% of their staff, global entities at 30%, and other businesses averaging at 14%. These figures indicate a growing recognition of the importance of financial security and the roles employers play in providing it.
The findings collectively point to a broader trend: corporations are increasingly viewing employee health and well-being as an investment rather than a cost. By enhancing health insurance plans and incorporating features like maternity benefits and flexible benefits, companies are fostering a culture that values and supports its employees beyond the workspace. This evolving benefits landscape is not merely a response to rising costs but a strategic move toward nurturing a healthier, more committed workforce—the cornerstone of any thriving organization in today’s competitive business environment.
