Aon Study Finds Employers in India Expanding Benefit Offerings for Employees

BANGALORE (18 July 2023) – Aon plc (NYSE: AON),a leading global professional services firm, has published its 2023 Aon India Primary Care Benefits Report, which evaluates investments in primary care and outpatient benefits in the wake of the COVID-19 pandemic. The insights from the study aim to inform employers about best practices in employee benefits in the country and help them make better decisions to build workforce resilience and strengthen their overall employee value proposition.

The Aon study revealed a 51 percent increase in companies offering outpatient department (OPD) benefits compared to 2019. Among the hi-tech and consulting industries and small and medium-sized companies, the provision of primary care benefits more than doubled and tripled in this period, respectively. Increasing digitalisation and a fast-paced lifestyle are making primary care and outpatient solutions more seamless and helping fulfill the entire primary care spectrum for employers.

Ashley Dsilva, head of Health Solutions for India at Aon, said, “A volatile business environment and rising employee expectations are creating new challenges and opportunities for employers - and require employers to increase their understanding and deploy innovative primary healthcare benefits through better decision making. This report identifies key trends and patterns in wellbeing and preventive care spending and highlights potential areas for improvement in the near future. The benefits landscape in the wake of the COVID-19 pandemic has shown increased fluctuations. Companies must therefore leverage data and insights around employee health and wellbeing to ensure they continue to build a resilient workforce that can thrive during uncertain times.”

According to the study, among the companies that provide OPD benefits, 88 percent of participants are providing consultations with doctors, followed by dental benefits at 83 percent and diagnostics (such as X-rays, MRIs or scans) at 80 percent. Companies providing OPD benefits also reported providing more holistic benefits, including pharmacy benefits at 77 percent, vision benefits at 60 percent, and physiotheraphy and annual check ups at 43 percent - thereby improving the health of employees leading to drop in claims and reducing the costs of overall employee benefits.

An increasing number of companies reported expanding their wellbeing benefits under primary care, with 80 percent of those providing employee assistance programmes and mental health support and 37 percent offering telemedicine. Preventive care such as health risk assessments (32 percent) gym benefits (18 percent), and disease management programme (13 percent) are additional benefits being introduced in employee wellbeing benefits programmes.

• 80 percent of employers in India have increased their spend on wellbeing.
• 67 percent of employers believe that unhealthy employees have a direct impact on business financials.
• 82 percent agree mental health has a potential impact on business outcomes.
• Employers are currently looking for a one-stop solution, with 81 percent wanting a single-window integration to manage their programmes.
• 52 percent of employers are utilising technology apps for the fulfilment of primary care benefit plans.

Shantanoo Saxena, executive vice president of Health Solutions for India at Aon, said, “We have witnessed a big shift in the way companies want to offer benefits. As a result, there is an increase in benefits plans curated by insurance companies and technology players. The most preferred way of financing these plans is by the insurer - not in-house. Benefits cost control, minimum member requirements, benefits prevalence and limited provider capability are the major obstacles for companies in implementing outpatient benefits programmes.

“In addition, with the pandemic exacerbating issues like high debt and reduced or depleted emergency savings, workers are looking to their employers for new solutions to alleviate financial stress and reduce healthcare spending. The traditional medical plan does not cover out-of-pocket expenses as it is expensive and administering the programme is a challenge. Therefore, It is critical for employers to understand current market trends and adopt practices that will help them build a resilient workforce through an optimized and streamlined benefits offering.”

To learn more, access the 2023 Aon India Primary Care Benefits Report here. More information about Aon in India is available here.

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