Mumbai, February 14, 2017 – A new market research report released today by Marsh India shows  that more than half of the surveyed employees depend on their own finances to address the top four risks – medical emergency, disability, loss of property, and loss of income.


According to Marsh India’s 9th annual Employee Health and Benefits Survey, 92% employees stated that they are willing to share premium costs and buy voluntary insurance  plans offered to them by their employers, with 33% willing to spend 1%-2% and another 37% willing to spend 3%-5% of their annual salaries on various voluntary insurance plans.


More than half of the employee respondents (53% of those who are covered by group medical coverage and  57% of those who are covered by  group personal accidents) believe that the medical and accident insured benefit plans, respectively, provided by their employer are inadequate leading to out of pocket expenses.


Majority of the employees are keen to invest in top-up, outpatient department, and parents insurance plans to minimize their out of pocket expenses. Interestingly, almost 83% are looking for options to customize the insurance offered by employer such as increasing room rent, maternity limits.


Insurance preferences among different age groups of employees:

Age Group  Baby Boomers Gen X Millennials
Spending capacity (as a percentage of the annual income) 3% – 5% 1% – 2% 3% – 5%
Conventional products OPD OPD Medical top-up
Accident top-up Medical Parents Medical parents
Critical illness Medical top-up OPD
Medical top-up Critical illness Accident top-up
Non- conventional products Income protection Motor insurance Motor insurance
Motor policy Child plans Home insurance
Retirement protection Travel insurance Travel insurance
Gadget insurance Home insurance Gadget insurance


Almost 78% employees are willing to spend INR 2,000 to INR 20,000+ on voluntary Parent insurance plans.
Sanjay Kedia, Country Head and CEO of Marsh India, said: “Globally, the working environment is transforming at a faster rate than ever, given the constant socio-economic changes and rising lifestyle standards. Employees form a critical asset in today’s knowledge-based economy and the workplace is an integral part of an employee’s life. A comprehensive benefit program creates a win-win situation for both for the employee and the employer: the employee benefits from an inclusive and cost competitive company facilitated plan, while for the employer it contributes to employee well-being, loyalty and satisfaction.”


Marsh India’s survey showed a shift in employers’ outlook towards insured benefits. As compared to last five years, for the first time the median sum insured of medical insurance has increased from 300,000 to 350,000 along with an increase of 1,000 in room rent eligibility limit.


Keeping pace with the past few years, the proportion of Indian organizations that facilitate parents’ coverage (fully employer paid plans and cost-shared plans) has increased to 80%, from 76% in the previous edition.


Organizations seem to adopt a strategy that is critical to sustainability of Parents insurance plans – increasing in prevalence of cost-sharing plans. 35% companies fully pay for Parents insurance as against 41% in 2015 and 45% share premium cost as against 35% in 2015.


To keep the insurance premium cost in check, organizations have started looking beyond benefit cuts. Top 3 measures are – Implement & leverage on network cost efficiency, adopt preventive health & wellness measures and increase the voluntary insurance plans offered.


Interestingly there is lot of importance on making the insurance plans more holistic. Survey reveals that 31% organizations have plan enhancements specific to address women employees, followed by 30% towards medical advancements and 26% for chronic conditions & long term care needs.



The 9th edition of Marsh India’s Employee Health & Benefits Survey analyzes both employer and employee perspectives, to gain a holistic view of the state of the market. Over 500 employers participated in the survey this year, a 25% increase from the 2015 survey. About 28% of the employer respondents were from the information technology and information technology enabled services (ITeS) sector, followed by the manufacturing sector at 16%.


Over 2,000 employees from a diverse range of backgrounds, demographics and locations participated in the survey, representing the typical workforce of the respondent organizations. Among the employees who participated, 56% are millennials, 39% are Gen X, and the remaining 5% are baby boomers.


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