Several companies, especially startups and IT companies, now offer higher sums insured and have begun to cover employees’ parents in their group health insurance policies, as a strategy to attract and retain good talent.
Experts say the new trend has been driven by a shift in employee behavior towards a comprehensive health benefits plan for the whole family. Another key reason was that employees leaving large multinationals for startups were also looking for health protection similar to what they had at large companies.
“Around March 2020, sentiment was very negative and so companies focused on cost cutting. Today, with the hunt for talent at an all-time high, companies are looking for ways to attract and retain talent. That’s why many companies are increasing the sum insured and adding the parents of their employees for the first time. On average, the premium per employee has increased by 15% over the last year due to a combination of several factors such as the increase in the sum insured, the inclusion of more people burden and higher medical inflation,” said Saransh Garg, co-founder and CEO of Nova Benefits. , an employee wellness platform focused on corporate health insurance.
Abhishek Poddar, co-founder and CEO of employee health insurance platform Plum said that “before Covid, we were seeing less than 40% of companies offering insurance plans covering employees’ relatives. But that has changed significantly over the past year, with 65% of companies now opting for parent-inclusive coverage. Over the past couple of years, we have also seen growth in the sum assured, with more companies now opting for Rs 5 lakh per family plan instead of the more common Rs 3 lakh earlier. Also during renewals, many Plum customers switched to parental plans from their non-parental plans earlier.”
Garg added: “During the interview, applicants started asking if their parents will be covered, what is the sum insured, if there are personal and term life insurance policies, etc. This is why reversal occurs and companies increase the sum assured and covering parents. Businesses go the extra mile to provide health benefits as this also helps them retain their employees. »
Due to the ongoing pandemic, awareness of employee wellness programs has increased. Companies have now started to focus on wellness programs compared to the pre-Covid era.
Poddar said that “there has been a recognizable increase in awareness and demand for employee wellness programs by companies compared to pre-Covid times. Plum has seen an increase in its teleconsultation services for general health care and mental well-being. request in which almost all of our 1000+ customers are looking for a post-Covid health benefit package.
Garg agrees: “Employees are looking at overall employee benefits. They consider medical consultation, health checkups, creating fitness challenges, health risk assessment, and more. So companies are digging deeper into how they can improve the health and well-being of their employees.