MSMEs - or Micro, Small & Medium Enterprises - are often under intense pressure to retain their members of staff, along with the various other business risks they are prone to. For them, losing qualified and talented workers to larger firms is damaging. As a result, they need to execute a variety of strategies in order to keep their current staff and hire new ones. Group health insurance is a crucial employee perk that aids MSMEs in retaining staff in the face of the escalating healthcare expenses that are draining people's wallets. Group health insurance has several advantages for MSMEs in the country and their workforce.

Insurance Penetration in Indian MSMEs

KPMG in association with FICCI in India conducted a survey involving 219 MSMEs from 15 different sectors in manufacturing and services. The study revealed that compared to an 85% cover in large corporate, insurance penetration is at a low 31% in the MSME sector! (Source: ehealth.eletsonline)

But we at Raghnall, India’s reputed business insurance broker and risk advisory company, aim to change this scenario by ensuring that MSMEs realise the long-term advantages of being insured. We bring to you group health insurance solutions and more at the most reasonable quotes, to provide you with maximum benefits at minimal cost.

Why is Group Health Insurance Important for MSMEs in India?

1. Lower premiums, and better benefits when compared to individual health cover

It is less expensive to sign up for a group health insurance plan than an individual one. When a person enrols in this health insurance, they are insured. Also, when more employees share the risk of loss, the average cost per employee decreases. The size of the company and the number of employees with health coverage have a significant impact on group health insurance prices. For bigger groups, the insurance plan is typically more affordable.

2. Enhances loyalty and retention 

Raises are not the only solution to retain staff; besides MSMEs may not always be able to afford them. But, providing group health insurance to workers may prove to be a successful strategy for retaining top talent and gaining employee loyalty. However, businesses may suffer a significant loss if they don't offer benefits or bonuses to their staff. Hence, it will be worthwhile to place a priority on employee loyalty and keeping the firm running smoothly given the time and expense needed to identify the right talent and train them. Group health insurance may be more affordable than the additional expenditures incurred by significant employee turnover.

3. Healthier employees are often more productive 

Employees have easier access to medical resources with group medical insurance. People can do their jobs with confidence since they are covered by health insurance in the event of a sickness or emergency. Offering health insurance to workers can help small firms reduce sick days and increase productivity and concentration. Offering a group health insurance cover is more cost-effective than dealing with lost time and decreased production brought on by frequent employee absences. Good employee attendance records could be influenced by easy access to medical resources. In the end, happier workers may increase productivity and support a small business's success.


Did You Know?

a). The MSME sector employs an estimated 11 crore people in India and according to IRDAI, only 5% of the 6.3 crore MSME businesses offer insurance to employees or are insured.

b). The survey said that approximately 90 percent MSMEs do not offer any financial aid for medical purposes to the families of employees and almost no micro and medium enterprises offer financial support to their employees and their families.

c). It is notable that MSMEs prefer to purchase insurance through bank assurance and brokers, with group health insurance penetration through online channels at a minimal level of about 6%.

(Source: moneycontrol, ehealth.eletsonline )


  • Fosters a conducive company culture 

Employee satisfaction and happiness can contribute to the development of a positive workplace culture in MSMEs. Providing group health insurance will give workers the impression that their employers care about their health, enhancing their motivation to perform better than expected. Employees are frequently happier with group insurance than they are with individual insurance because the latter might cost them a fortune.

At every link in the value chain, Raghnall's group health insurance plans consistently provide great service that enhances the workflow of client organisations. Likewise, you can also opt for cyber insurance and other MSME business insurance solutions from Raghnall to safeguard your company’s important assets.

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