A Bengaluru-based startup now offers unlimited tele-consultations and stress management workshops as part of its health cover. In Gurgaon, a mid-sized tech firm recently rolled out a group policy that includes coverage for live-in partners and therapy sessions. Elsewhere in Hyderabad, an MSME is experimenting with wellness-linked insurance incentives tied to wearable fitness trackers.
The idea of comprehensive employee wellness might still be finding its feet in corporate India, but it’s surely and steadily moving well beyond the earlier fallback mechanism of just the emergency hospitalisation. Not to forget, until a few years ago, mental health issues firmly belonged behind closed doors and hushed conversations due to the stigma at the workplace. But today’s group health insurance plans are increasingly built around mental health, preventive care and holistic well-being. Organisations are increasingly seeking more flexible, inclusive policies that match the diverse needs of a modern workforce and insurance providers are stepping up to meet that demand.
Health insurance, traditionally seen as a hygiene benefit, is now emerging as a key differentiator. One-size-fits-all policies no longer work for a workforce that spans generations, life stages, and work styles from full-time employees to gig workers.
Employee wellness a key KPI for corporate India
According to Mercer’s Global Talent Trends 2024 report, 50% of executives now include employee health and well-being metrics, such as healthcare costs and burnout rates, on their leadership scorecards. This marks a significant increase from 40% in 2022 and just 21% before the pandemic. A recent report also highlights that employee well-being has become a pivotal focus for Indian organisations, with 62% of companies identifying it as a top HR priority.
These numbers can be seen translated into practical steps today at various organisations. Tele-consultation, introduced during the pandemic has become a game-changer in the industry. It not only saves time but also serves as the first line of defence. Mental health is no longer a taboo as more companies offer therapy, mindfulness workshops, and emotional well-being support. Focus on preventive care helps reduce absenteeism at work and boosts productivity. So, with good reason, corporations don’t see this as a cost but an investment into the future.
Smarter benefits for smaller companies
For SMEs and MSMEs, offering comprehensive health insurance used to be out of reach. But technology has brought flexibility and cost control into the mix. Insurtechs now enable employers to build modular, demography-based policies. This allows them to offer OPD coverage, maternity benefits, parental insurance or wellness services, depending on what their workforce needs and what the company can afford. This shift is particularly valuable in India’s talent-constrained market, where offering meaningful benefits can be a powerful retention and recruitment tool especially for smaller firms.
Policies designed to reflect new-age India’s needs
Today’s corporate insurance policies are also matching the pace with societal change. Coverage is expanding beyond the traditional family structure to include live-in partners, same-sex couples and transgender employees. Moving beyond being a checkbox, these policies are about creating a workplace that genuinely reflects modern values and attracts a diverse, younger workforce.
The rise of the gig economy is another aspect that’s being taken into account now. India is home to nearly 15 million gig workers. Traditional employer-based benefits often don’t fit into the requirements of this segment. This has led to the rise of adaptable, pay-per-use health insurance models. Though in an early development stage, these solutions are aimed to promote inclusive healthcare access for independent workers.
Some organisations are even offering term life cover that extends beyond an employee’s tenure. Others are giving employees the option to port their group health cover to individual plans when they leave. These features ensure continuity of protection and build long-term trust between employers and employees.
As the workforce becomes more diverse and expectations shift from protection to prevention, the value of group insurance will be measured by how well it adapts and not only by how much it covers. The real opportunity for corporate India is now to lead with empathy, design with insight and build a benefits ecosystem that evolves with its people.
