Page 31 - The Insurance Times May 2025

advice, reducing absenteeism and improving productivity. ing. Inclusivity and flexibility are now central themes, with
Mental health programs are gaining traction, with compa- companies expanding their benefits to cover new-age em-
nies offering therapy sessions, stress management work- ployee needs. A few examples are - inclusion of live-in part-
shops, and meditation programs. A study by PwC found that ners, same-sex partners and transgender employees in cor-
investing in employee experience, including well-being ini- porate insurance policies. Corporate insurance is also mov-
tiatives, can lead to savings of up to 12.6% of an ing beyond conventional definitions of 'family' by accommo-
organization's revenue. dating diverse familial structures. While this is still in nascent
stages, it still reflects the gradually changing social norms.
These savings are attributed to increased productivity and
reduced absenteeism and turnover. Fitness incentives, such The gig economy is another area driving change. With nearly
as gym memberships, wearable fitness trackers, and 15 million gig workers in India, traditional employment-linked
wellness reimbursements, encourage employees to adopt benefits no longer suffice. Insurers are exploring new mod-
healthier lifestyles. These initiatives help companies reduce els that provide flexible, pay-per-use health plans designed
long-term medical expenses by preventing lifestyle diseases for gig workers, allowing them to access essential healthcare
and ensuring a healthier workforce. The growing emphasis services without being tied to a single employer. While still
on holistic well-being marks a shift from reactive to proac- in its early stages, these kinds of insurance benefits are ex-
tive approach to health insurance. pected to gain traction as gig work continues to grow.

Affordable customisation for SMEs and Large multinational corporations are not far behind either.
MSMEs Many of them are setting benchmarks by offering global
insurance models that cater to different cultural and social
Small and medium enterprises (SMEs) and micro, small, and
medium enterprises (MSMEs) have traditionally faced chal- norms. Recent reports indicate that 65% of companies are
lenges in providing comprehensive health insurance to their re-evaluating their insurance policies to align with DEI (Di-
employees. Unlike large corporations with extensive bud- versity, Equity, and Inclusion) initiatives.
gets, SMEs and MSMEs must operate within tighter bud-
gets while ensuring workforce well-being. However, new- Group term cover: Extending security
age Insurtechs continue to enable cost-effective and flex- beyond employment
ible group insurance plans that are tailored to the specific Financial security stretches beyond employment tenure.
needs of smaller organisations.
Realising this, many organisations now provide group term
life insurance to ensure that an employee's family receives
Businesses can now select modular policies based on
workforce demographics and financial capacity. For example, financial protection in case of an untimely demise. Addition-
ally, some corporate insurance plans allow employees to
an SME with a young workforce may prioritise outpatient
benefits and wellness programs, while an MSME's employees convert group policies into individual ones upon exit, ensur-
might want parental coverage included. InsurTech platforms ing uninterrupted coverage and preserving accumulated
help accommodate this customised coverage for diverse benefits.
needs. They also streamline policy management, automate
claims processing and offer AI-driven risk assessments to en- With businesses increasingly prioritising employee well-be-
sure affordability and accessibility. ing, customisable health insurance is set to evolve further.
The focus will remain on striking a balance between
New-age benefits for an evolving affordability and comprehensive benefits. Employees across
industries, regardless of company size or work model, are
workforce striving to offer healthcare solutions that suit the diverse

Workforce demographics and expectations are rapidly evolv- needs of their employees.

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