Biju Menon, Chief Business Officer at Star Health Insurance, looks at the evolution of employee health insurance from multiple perspectives:
Ravi Lalwani: Can you provide information on corporate employee health insurance growth rate in India? Which regions have shown higher demand for corporate health insurance?
Biju Menon: The corporate employee health insurance sector is growing rapidly in India. This growth is driven by 2 main factors: the rise of new businesses, including SMEs and startups, and the expansion of existing large companies. As more businesses of all sizes are increasing their focus on employee benefits, including health insurance, the demand for corporate health plans has surged.
This trend is especially noticeable in cities with booming tech industries and industrial growth, such as Bengaluru, Hyderabad, and Pune. Major cities like Mumbai and Delhi are also seeing high demand. One major reason is rising medical costs. As healthcare becomes more expensive, both government and companies are working to improve and expand their group health insurance plans to better cover these increasing costs.
Which industry verticals have the highest demand for corporate employee health insurance?
We are seeing particularly high interest in sectors that are experiencing rapid growth and expansion. Technology and IT companies, including startups and established tech giants, are leading the charge. These organizations are investing heavily in employee benefits to attract and retain top talent, driven by their rapid growth and competitive landscape.
Additionally, industries like pharmaceuticals, manufacturing, and finance are also showing significant demand. As these sectors expand and face increased regulatory and operational pressures, they recognize the importance of robust employee health coverage as part of their overall benefits strategy. The rise in medical inflation has further intensified the need for comprehensive health insurance across all industries. Companies are responding by enhancing their group mediclaim offerings, whether through government-led initiatives or corporate-driven schemes.
Can you share any recent product or service innovations introduced by your organization for the employee health insurance category?
Star Health recently introduced a whole host of preventive healthcare services, including telemedicine, annual health check-ups, wellness programs, vaccines and home healthcare services into our employee health insurance plans. These showcase our commitment to improving the health of our customers and providing them accessibility and convenience at their doorstep.
With the inclusion of telemedicine, employees now have the option to consult with healthcare professionals remotely. This especially benefits those with busy schedules or those who live in remote areas where healthcare facilities might be limited. The service encompasses virtual consultations, follow-up appointments, and even prescription services. Customers can have home healthcare services at their doorstep for small and minor sicknesses, reducing the stress of visiting a doctor/hospital and providing a best-in-class experience with a seamless claims process. Annual health check-ups help early detection of sickness and preventive care can be undertaken to ensure visits to the hospital in the future are eliminated.
Our goal with this integration is to make healthcare more accessible and efficient, helping employees manage their health with greater ease and flexibility. We leverage technology to enhance the overall healthcare experience and ensure that our clients receive timely and effective medical care.
Does your organization provide coverage for hazardous sectors, such as mining and chemicals, under corporate health insurance products?
We recognize the unique risks and challenges that employees in hazardous sectors, such as mining and chemicals, face. We are dedicated to providing comprehensive health insurance coverage for workers in these high-risk industries. For hazardous industries, we offer tailored plans that include enhanced coverage for occupational health risks and accidents. These plans feature specialized benefits for medical treatments related to industry-specific hazards and extend to preventive health measures to help mitigate risks before they become serious issues.
We work closely with our clients to assess the unique risks associated with their operations which allows us to customize our insurance solutions to better address the specific needs of their workforce. We continuously review and update our offerings to remain aligned with industry standards and emerging risks.
Give examples of customization that your organization has done for your clients under the corporate employee health insurance category?
At Star Health Insurance, customization is central to our corporate employee health insurance strategy. SMEs and startups are increasingly investing in their employees’ health, and even established corporates are enhancing their healthcare budgets. Our approach includes a significant focus on Group Mediclaim, with over 55 tailored offerings that address various segments of society. We understand the importance of robust health coverage during employment and the gaps that arise once employees exit or retire. To bridge this gap, we’re developing solutions to provide continuous health coverage post-employment, ensuring employees remain protected even after their tenure with a company ends.
We also address the Outpatient Department (OPD) expenses for our clients with unique solutions, such as our in-house network of 400 doctors for teleconsulting. This service facilitates remote consultations, enhancing accessibility and convenience. Additionally, our recent Home Health Care (HHC) initiatives and advanced technologies, like face recognition through our mobile apps, support our commitment to delivering a seamless, personalized, and proactive healthcare experience.
Has your organization introduced any new employee fitness and wellness products under the corporate insurance category?
We have recently introduced several new fitness and wellness products for the corporate sector aimed at enhancing overall health and promoting a balanced lifestyle among employees. Our state-of-the-art mobile app integrates fitness tracking, wellness content, and virtual consultations. It allows employees to set fitness goals, monitor their progress, and engage in mindfulness practices from the convenience of their smartphones. The app also features a rewards program that incentivizes healthy behaviors and participation in wellness activities. Our new plans include benefits for regular health check-ups and preventive care. This focus on prevention helps employees stay ahead of potential health issues and fosters a proactive approach to well-being.
What percentage of business comes from direct, agents and other channels?
We have strategically diversified our distribution channels to ensure comprehensive coverage and reach for our corporate employee health insurance products. Currently, our business distribution is as follows:
Broker Channels: About 60% of our business comes from large and small broker channels. These channels help us tap specialized markets and provide tailored solutions to various client segments.
Direct Channels & Agency: Approximately 25% of our business comes through direct & agency channels. This includes sales through our website, direct sales teams, and customer service centres. This segment has seen strong growth. Agents play a crucial role in reaching clients who value personalized service and expert advice. Their local market knowledge and relationships significantly contribute to our overall business.
Digital & Bancassurance Partners: Approximately 15% of our business comes from digital channels and bancassurance partners. Through our bancassurance partnerships, we are able to combine their strengths aiming to provide the customers of our partners with a comprehensive array of financial products and services within a single ecosystem. We can leverage the banks extensive customer base, robust distribution networks, and profound understanding of customer financial needs.
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