Group health insurance is slowly becoming a necessity for most companies, regardless of size. The rising cost of healthcare makes it even more important.
Every company needs to look after its employees, and purchasing group health insurance is more cost-effective than asking employees to avail of their own individual health plans.
The good news is that over the last couple of decades, purchasing group health insurance plans have been increasingly becoming easier for companies.
What’s on this page?
There are a lot of factors at play here, and we’re going to discuss each one of them to answer is group health insurance affordable:
The era of digital transformation is well underway. Digital transformation is the phrase that is used to refer to the increasing utilization and adoption of technological systems to run business operations.
Every company these days is adopting the latest IT tools in order to remain competitive in an ever-changing marketplace.
Digitization has made it possible for companies to lower their expenses and costs. Since companies can now afford to operate more cheaply, it is no surprise that the benefits are being passed on to the consumers.
This means that digitization is making goods and services more cost-effective for consumers. This phenomenon is especially true in the Indian insurance market.
Insurance companies that provide group health insurance policies are able to cut costs by using specialized software which is now available for insurance companies. This type of group health insurance software makes it much easier to handle the administrative work that is involved in insurance.
Since administration makes a large part of the cost of insurance, the end result is that group insurance policies are getting cheaper for companies.
Personalized and Flexible Products
Earlier, group health insurance plans used to be highly rigid. Every employee in the company would need to opt for the exact same plan without any changes. This was not an optimum system since the needs for different employees were very different.
For example, certain employees had families while others did not. The employees who had families would need insurance coverage for their dependents as well, while those who did not have dependents could work without family cover.
Hence, there was a need felt by companies to offer more personalized health insurance to their employees.
Thankfully, the times have changed over the last couple of decades. Nowadays, insurance companies can offer highly flexible group insurance plans which cater to the needs of each individual employee. The individual employee can pick and choose different add-ons in their policy to make it suitable for their needs.
Greater Competition and Options for Consumers
Over the last couple of decades, there has been a proliferation of companies that offer insurance services. This means that there is much greater competition between companies in the insurance market.
This spells good news for people looking for insurance. The rise in competition does not just mean lower prices and lower margins, it also means that the option available to consumers is far greater.
Every insurance company tries to differentiate itself by offering specialized insurance products. This means that users can pick and choose insurance products that exactly match their needs and at a lower price point.
Insurance aggregators exist in the Indian insurance market which provides a bird’s eye view of the different group health insurance plans available. This makes it much easier for consumers to choose the right policy out of the vast field of options.
Moderation of Prices
Indian insurance companies have changed how they set their prices because of digital transformation and more competition. Gone are the days when you had to negotiate hard with your insurance company for even the slightest benefit.
Nowadays, the same service is provided at the same price by every insurance company. This means that bargaining and negotiation are no longer factors in picking the right health insurance product.
The cost of the insurance policy is calculated by computers according to a pre-set algorithm depending on actuarial science. This cost is the premium which is charged by insurance companies from their customers.
Since the prices have been made standard, it means that users can expect the best price from their insurance providers without the need for negotiation.
It is extremely good news for companies that group health insurance plans are getting more affordable and accessible. It means that companies can take care of their employees without breaking the bank.
In today’s market, when companies are in fierce competition for talent, it is even more necessary to provide benefits that employees can use to increase loyalty and retention rates.