Plum, a prominent insurtech platform in India, has unveiled its flagship report, "The State of Employee Benefits 2024," shedding light on the transformative impact of Group Health Insurance in the country. The report highlights how Group Health Insurance has emerged as the fastest-growing segment in health insurance, experiencing a remarkable 25% Compound Annual Growth Rate (CAGR) and providing a crucial safety net to over 10 crore new Indians within the past three years alone.

In the wake of the COVID-19 pandemic, Group Health Insurance has become a driving force behind the increased penetration of health insurance in India. The report reveals that Group Health Insurance now covers nearly 20 crore Indians, more than doubling between FY20 and FY23, and accounting for over 50% of Health Insurance Premiums in India as of FY24. This surge in coverage underscores the pivotal role of Group Health Insurance in bolstering India's healthcare ecosystem.

Despite the attention often given to retail insurance products, the data presented in the report shows that only a fraction of the population has availed themselves of any form of retail health insurance. In contrast, Group Health Insurance, often extended to employed individuals, significantly expands coverage from a household perspective. The report emphasizes that addressing the healthcare needs of this "missing middle," which comprises approximately 40% of the country's total population without insurance, is imperative.

However, despite the progress made, challenges persist. The report highlights how a significant portion of the Indian population remains vulnerable to financial instability due to unforeseen medical expenses, with millions pushed into poverty each year. The need for comprehensive healthcare coverage is underscored by statistics revealing high out-of-pocket spending and an immense unmet need in healthcare.

Abhishek Poddar, Cofounder and CEO of Plum, emphasizes the evolving landscape of employee benefits, noting a shift towards holistic approaches that combine insurance benefits with preventive and primary healthcare. The report showcases a notable increase in companies offering flexible benefits and investing in primary healthcare. Additionally, the median sum insured has seen a substantial rise, indicating a more thoughtful adoption of Group Health Insurance across Indian businesses.

The growth in Group Health Insurance is attributed to several factors, including efforts by the Insurance Regulatory and Development Authority of India (IRDAI) to enhance coverage comprehensiveness and the inclusion of treatments like oral chemotherapy and robotic surgeries from day one. The report also highlights the significant role of Group Health Insurance in covering existing diseases and extending coverage to employees' parents without waiting periods.

Furthermore, the report redefines the concept of benefits, emphasizing modern insurance cover coupled with preventive and primary health initiatives such as telehealth consultations. Insights from the report reveal a substantial uptake in insurance claims and telehealth consultations among employees covered by Plum.

Looking ahead, the report suggests that by insuring the employed population and their families, insurance penetration in India can potentially double. This underscores the immense potential for further growth and expansion in the realm of Group Health Insurance, signaling that the story of group health insurance is just beginning.

"The State of Employee Benefits" serves as Plum's annual benefits report card, drawing insights from over 4500 policies to offer a comprehensive understanding of how companies across various sizes design and define their benefits plans. With its deep dive into employee benefits trends, the report provides valuable insights for businesses navigating the evolving landscape of healthcare coverage in India.