There's a 66 per cent increase in the median sum insured, from Rs 3 lakh to Rs 5 lakh, according to a study released by Plum, an insurtech platform in India, called 'The State of Employee Benefits 2024.' The study covered over 4500 companies. Moreover, there's been a doubling in the adoption of flexible benefits (personalized insurance programs for employees), a 15 per cent increase in companies offering maternity benefits, and a 110 per cent surge in companies offering comprehensive healthcare (preventive and primary).
Despite tight budgets, companies have aimed to continue investing in employee health and wellbeing. Insurance plans and benefits are now being carefully crafted with greater care and a focus on sustainability.
What Has Changed?
This year, the top concern for most Chief Human Resources Officers (CHROs) is the absolute spending on employee benefits. Forty per cent of CHROs have noticed that the business environment is impacting their benefits budget. The expected 11 per cent increase in premiums for benefit plans due to medical inflation does not make things easier.
Unveiling Plum’s flagship “The State of Employee Benefits 2024”, Abhishek Poddar, Cofounder and CEO said, “We are in an era where ‘modern benefits’ are equated to employer brand and employee retention. Our study reveals that 76 per cent of employees weigh the quality of benefits as a factor in staying at a company or leaving. Benefits also have evolved - it is no longer just insurance, but employee health and well-being that is a matter of concern for employers who care. Despite tight market conditions, it is heartening to see companies adopting sustainable policies, keeping in mind employee morale.”
The State of Employee Benefits Reveals The Following Trends:
Unicorns and global startups offer comprehensive coverage, with a good mix of telehealth included. However, the size of the company doesn't determine the quality of benefits; intent does. Global startups lead with a median sum insured of Rs 10 lakh, while startups and smaller companies offer between Rs 1- Rs 6 lakh.
There's widespread adoption of modern treatment coverage, with 95 percent+ for global startups and a significant majority for other types of companies.
Outpatient Department (OPD) benefits are becoming more important for unicorns, with a 30 per cent increase, indicating a focus on accessible day-to-day healthcare.
Global startups and unicorns universally offer LGBT+ inclusive health coverage, with widespread adoption across other company sizes.
Maternity benefits in global startups average over Rs 1 lakh, showing a commitment to supporting growing families.
Companies are increasingly adopting accident and disability insurance, with unicorns leading the charge at 90 per cent, and global startups at 60 per cent with the median being 45 per cent.
Term life insurance is becoming more important with Unicorns covering 75 per cent, global companies at 30 per cent, and the median among the rest is 14 per cent.
Telehealth services, vital for preventive and primary healthcare, are nearly always included in global startups and widely integrated across other companies, although speciality services may not be included in smaller companies.
However, the top 10 per cent offers exceptional benefits irrespective of size. They see benefits as an investment in top talent- an organization’s key asset. These companies prioritize providing their employees with the ‘care’ they deserve.
Saurabh Arora, Plum's co-founder and Chief Technology Officer (CTO), stated, "Difficult market conditions shouldn't stop compassionate companies from providing customized benefits. We've been working with our clients to develop sustainable policies that benefit both employers and employees."
An Overview of A Sustainable Policy:
Introducing a parental co-pay/ voluntary parental covers.
Implementing sensible room-rent capping (e.g., Rs 10,000 per day).
Setting reasonable limits on elective treatments (e.g., a cataract limit of Rs 50,000 per eye).
