Aon plc has note that India’s health insurance landscape reflects rapid digitalisation and expanding coverage, yet faces challenges in awareness, standardisation and affordability. Competitive pressures have led insurers and brokers to adopt data-driven plan design, embedded wellbeing services and cost containment strategies. Despite the increased market competition, only 50 per cent of insurers provided customisation support to clients with more than 1,000 employees compared to 92 per cent of insurers in China.
The report is based on a survey of six insurers in India, evaluating more than 600 data points across 10 key wellbeing domains, including telemedicine, mental health, employee assistance programmes (EAPs), health screenings and case management.
“India’s health insurance market is at a pivotal moment, with rising expectations from employers and employees alike,” said Susan Fanning, head of APAC wellbeing solutions for Aon.
“The findings from the report highlight the need for insurers to innovate, customise and build stronger partnerships to deliver measurable outcomes while managing costs. By aligning more closely with employer priorities of workforce health, cost sustainability and measurable outcomes, insurers can play a significant role in building a resilient, future-ready health benefits ecosystem for their workforce, added Fanning.
Eighty three percent of insurers surveyed in India now offer telehealth services, providing employees of their clients with access to general practitioners, chronic disease management, e-prescriptions and medication delivery. The findings suggest that while telehealth adoption is progressing, its full potential for driving healthcare cost savings and widespread usage is yet to be realised, highlighting opportunities to strengthen integration with other wellbeing programmes and improve client education.
Sixty seven percent of insurers surveyed in India offer EAPs (expanded access programme) through phone, online platforms and mobile apps, catering to a linguistically diverse workforce with services available in English, Hindi and, to varying degrees, additional regional languages. However, EAP engagement is inconsistent, with utilisation rates ranging from one percent to as high as 50 per cent and growth in usage between six percent and 40 per cent from 2022 to 2024.
Mental health services are also gaining traction, with 50 per cent of insurers surveyed providing features like wellbeing assessments, self-help tools and resilience training.
Health screenings across Indian insurers show both untapped potential and current underutilisation. Although half of the surveyed insurers provide health screening services ranging from basic to comprehensive and specialist tests, employee uptake remains low to moderate.
Only 33 per cent of insurers surveyed have established case and specialist disease management programmes, primarily focusing on chronic conditions such as musculoskeletal and cardiovascular diseases. Onsite clinics are available through two out of six insurers surveyed, providing convenient immediate care for common health concerns. Although utilisation fluctuates and consistent claims savings have yet to be demonstrated.
Ashley DSilva, head of health and wealth solutions, India for Aon, said: “India’s health insurance market is undergoing rapid transformation, driven by ambitious initiatives like Ayushman Bharat and progressive reforms by the Insurance Regulatory and Development Authority of India with a singular focus on expanding coverage to newer population segments. We are seeing employers increasingly prioritising mental health, chronic disease management and financial wellbeing as essential components of their core benefits. To stay ahead, insurers must broaden their approach by harnessing predictive analytics and offering greater customisation flexibility for large employers.” |