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Why corporate houses should look at new age group insurance concept?

Why corporate houses should look at new age group insurance concept?

Why corporate houses should look at new age group insurance concept?
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By CNBCTV18.com Contributor Jan 19, 2022 4:59:34 PM IST (Published)

Corporate houses should also look at innovative options today when it comes to group insurance. Though this type of insurance is at its nascent stage, it is slowly gaining grounds. Below are some of the benefits of such platforms when compared to other market contemporaries:

Insurance has always been a significant instrument to protect one’s savings and meet the unexpected events of life. While life, health and motor insurance have always been on the top of the list for individuals; group insurance has been of equal importance for the corporate houses. It has been a way for companies to show their care and credibility towards the employees.

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The concept of group insurance has always been always driven by the traditional approach, where an employee joining a company (which provides group insurance), becomes eligible for a certain sum assured. But as the insurance sector is changing at a fast pace, catering to the growing needs and demands of consumers; group insurance is also likely to witness a change in its concept and business model in the years to come.
Corporate houses should also look at innovative options today when it comes to group insurance. With technology playing at the forefront of insurance; companies should look at insurance options which can give maximum benefit to their employees. The industry is witnessing various innovative models, one of which is- employees can choose the insurance policy they want to purchase, and at lower premiums compared to the market price.
Though this type of insurance is at its nascent stage, it is slowly gaining grounds. Some insurance companies are now joining the bandwagon to provide alternative yet fulfilling group insurance policies. These platforms need to be contacted by the corporate through means of registration or subscription, and they avail the employees with a plethora of options when it comes to the insurance they need.
Below are some of the benefits of such platforms when compared to other market contemporaries:
Choice from multiple options (Flex Benefits):
Unlike the traditional group insurance policies, the innovative corporate insurance gives employees the choice to buy insurance policies as per the individuals’ needs and requirements. This means every employee can choose a different insurance policy which suits the needs of his or her family. The corporate house needs to register themselves with such insurance companies to provide their employees with this new age insurance option.
Low Premiums: The policy premium is one filter that any insurance buyer uses to sort through the vast options of policies in the market. And this is another benefit that many of the new age platforms provide, the premiums for the policies that one avails from these platforms are much lower than their actual market price. The low premium benefit is given by insurance companies so that more and more corporate houses avail the new age corporate insurance and can percolate the immense benefits to their employees.
Insurance according to their needs: As we have established earlier, every person has his or her own insurance needs and preferences. And simply asking anyone to join in on group insurance without considering their needs is old school. There will be employees who will want health insurance; some others might want to ensure their life, journeys and vacations, there might also be people who will need vehicle insurance. And catering to all these individual needs is relatively easy with the help of these new-age insurance platforms.
Benefit to MSME Employees: While we talk about group insurance, we forget a very important segment, which is the MSME sector. These insurance platforms also cater to the largely unattended market of MSME employees and workers. Employees of these MSMEs can avail the new age corporate employee insurance from some of the best insurers in the country. While large corporate houses provide insurance to their employees, MSMEs often get left out in providing group insurance policies. Such policies also help the MSME segment offer lucrative insurance policies to their employees.
Employee group insurance is one of the most desired privileges that an employee looks for while working with an organisation. Many employees also refrain from availing individual policies as they feel equally secured from the group insurance provided by their organisations. However, even today, there is a huge gap in the insurance sector when it comes to group insurance; it is majorly due to the low penetration rate of insurance policies and inadequate sum insured.
With the new age insurance models, integration of technology, phygital model, insurance is getting distributed the country. While the government, IRDAI and insurance companies are trying their best to increase the insurance penetration, consumers too should be aware of the best policies available in the market and accordingly avail the best options. Here the new age digital platform will play an important role.
The author, Aatur Thakkar, is Co- founder and Director at Elephant.in. The views expressed are personal
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