Offering healthcare benefits can help MSMEs attract and retain best talent
insurance coverage.
“Historically, only a small percentage of MSMEs provided healthcare benefits to their employees as most insurers required a minimum number of employees to extend insurance coverage,” says Yogesh Agarwal, Founder & CEO, Onsurity. “Offering comprehensive healthcare benefits is necessary to help businesses differentiate themselves in a competitive talent market.”
Only 5-7% of small businesses provide health insurance coverage to their employees, say industry observers.
Stakeholders say that health insurance coverage is a major factor that can increase or decrease the morale of employees. “Focusing on offering the right healthcare benefits is crucial because it can help mitigate these challenges by ensuring that employees are healthy, motivated, and less likely to leave,” says Agarwal.
MSMEs are considered the backbone of the economy as they contribute nearly 30% to the GDP and provide employment to over 100 million people. As they play such a key role in the economy, most small businesses need to get access to affordable skilled labour. Stakeholders say that providing healthcare coverage aids in attracting and retaining individuals, thereby fostering development.
Earlier, insurers needed a minimum number of subscribers from a company and MSMEs were not able to provide that number. But this is no longer a concern now as many new-age insurtech companies cover small teams, says Agarwal.
By extending insurance coverage to employees, the company enhances its image and demonstrates a commitment to
