Considered as the growth engine of the rapidly changing Indian economy, the MSME sector, employs over 11 crore people. However, according to IRDAI, merely 5% of the 6.3 crore MSME enterprises provide insurance or healthcare benefits to their employees. This underscores a critical need to enhance insurance coverage within this vital sector, which serves as the backbone of the Indian economy. Ensuring comprehensive healthcare access for the workforce is paramount, and addressing this gap is crucial to bolstering the sector's resilience and sustainability.
We spoke to Kulin Shah, co-founder and COO of Onsurity, to discuss the importance of affordable healthcare solutions for employees and how Onsurity is helping.
Founded in 2020 amid the transformative challenges brought by the COVID-19 pandemic, stands at the forefront of redefining employee health and wellness for Indian SMEs. Initially confronting skepticism about affordability and operational feasibility, Onsurity innovated with India’s first monthly subscription-based healthcare benefits plan, tailored to meet the specific needs of SMEs. Through a digitally-driven approach and a commitment to seamless customer experience, Onsurity has onboarded over 5,000 companies, saving them significant costs and enhancing employee well-being. This journey reflects not only a response to pandemic-induced shifts but also a strategic vision to empower SMEs with accessible, comprehensive healthcare solutions.
Here's an excerpt of the interaction we had with Mr. Kulin Shah:
Q/ Onsurity was founded in 2020. That's the year when a lot of pre-existing notions about employee health and wellness were challenged. What have been some of the major challenges in onboarding your first set of SMEs during the pandemic? Some learnings that you have had that you would like to share.
Kulin: The COVID-19 pandemic was a significant wake-up call globally, reshaping how businesses view employee health and wellness. One of the challenges we faced in onboarding our first set of SMEs was overcoming the long-standing notion that healthcare benefits are unaffordable for smaller businesses. Additionally, due to the manual interventions required at every stage, it was operationally tedious for small businesses to run a high-NPS health benefits program.
However, the pandemic underscored the importance of employee health and well-being, leading to a spike in demand for health insurance across the board. As founders with significant experience in the insurance space, we identified a gap: no one was truly addressing the healthcare needs of Indian SMEs and their 113 million employees and their families. This insight drove us to innovate and introduce India’s first monthly subscription-led employee healthcare benefits plan.
By allowing SMEs to pay monthly rather than an upfront annual payment, we made healthcare benefits truly accessible. Additionally, we offered a complete end-to-end digital experience, which reduced the need for manual intervention. This allowed both employers and employees to enjoy the benefits without operational hassles, especially at the time of claims. Our in-house claims concierge team, which comprises of qualified doctors, makes claims processing extremely hassle-free for all our members.
Today, I'm proud to share that over 80% of our customers are new to healthcare benefits, indicating that this is the first time they are extending such benefits to their employees. So far, we have helped more than 5,000 companies save over INR 25 crore on the cost of working capital.
The key lesson for us is that a one-size-fits-all approach will not be successful in scaling the SME segment. This business segment needs a differentiated and customised approach to empower them. Digitally enabled solutions that drive operational efficiency and seamless customer experience will make it a value-for-money proposition for this price-sensitive segment.
Q/ SMEs have a controlled cost structure. Did you come across any kind of hesitation or reluctance from such employers? If yes, on what grounds?
When it comes to SMEs, the key concerns are usually centered around affordability, cash flow management, and perceived value. Many SMEs operate on tight budgets, and the idea of additional expenses for employee benefits initially seemed daunting. They were worried about the financial burden that traditional health insurance plans typically impose, especially with the upfront lump sum payments. Additionally, traditional insurers often have a minimum number of employees required to qualify for their plans, which doesn’t always work for SMEs that operate with leaner teams. These concerns around affordability and the inability to meet minimum employee requirements were major barriers we had to address.
SMEs often experience fluctuating cash flows and high employee turnover rates. The uncertainty about sustaining regular payments for healthcare benefits, especially for a dynamic workforce, made them apprehensive. They needed a solution that could adapt to their financial realities and employee attrition rates.
Further, there was some scepticism regarding the actual value and benefits of offering healthcare to their employees. Some employers were unsure whether the investment would yield tangible returns in terms of employee productivity, satisfaction, and retention. They needed to be made aware that the benefits of providing healthcare would outweigh the costs. We addressed these concerns seamlessly through our unique model and technology-led touchpoints such as the Onsurity super app and a dedicated benefits management dashboard for HR managers and admins.
Q/ Please share the business and pricing model for SMEs. Did the models undergo any changes post the pandemic in terms of increase in demand?
Onsurity offers comprehensive healthcare plans tailored specifically for SMEs, combining insurance, healthcare, and wellness benefits. Our pricing model is designed to be affordable and customised, starting at Rs. 145 per month per employee. However, upon benchmarking the benefits that SMEs offer through us with those that larger companies offer, you will seldom find any gap.
Our insurance offerings for our members include health, term life, and personal accident insurance. Healthcare benefits encompass significant savings on lab tests, free doctor tele-consultations, doorstep delivery of medicines, and dental care. Additionally, our wellness benefits provide mental health solutions, nutrition and fitness plans, and vision care, among others. Our members also have the option to buy healthcare plans for their loved ones, including parents, siblings, spouses, children, and LGBTQIA+ partners. They can opt for these plans on-the-go through our super app, ensuring their loved ones’ health is secure while also keepig the cost under control.
As an organisation committed to evolving with consumer needs, we have significantly enhanced our offerings since our inception. Recognising the heightened awareness and necessity for robust employee healthcare benefits, we expanded our plans to include a wider range of benefits, ensuring comprehensive coverage.
In the same vein, under Onsurity Plus, we provide a dedicated range of business risk solutions through our insurance partners, including D&O liability insurance, cyber insurance, and asset insurance, to help SMEs safeguard their businesses against a host of risks. Our commitment to continuous evolution in response to market demands has established us as a trusted partner for SMEs and MSMEs.
Q/ How open are SMEs about not just health insurance but wellness as well?
SMEs are becoming increasingly aware of how comprehensive healthcare benefits, including wellness programs, can positively impact business operations. The shift in lifestyle patterns and the influx of younger employees into the workforce have driven a growing demand for wellness benefits such as mental health solutions, fitness programs, and nutrition plans.
We have observed a consistent uptake in our wellness offerings, with many SMEs recognising their value. At the time of renewal, a significant number of SMEs actively seek to enhance their wellness benefits, having already experienced the positive impact on employee productivity, satisfaction, and overall well-being. This trend indicates a broader understanding among SMEs that investing in both health insurance and wellness programs is not just a perk but a strategic move to foster a healthier, more engaged workforce.
Q/ What can be done, according to you, to make SMEs more open to selecting such coverage for their employees?
Increasing awareness about the long-term benefits of offering health and wellness benefits is crucial, as is offering flexible plans tailored to SME needs. Healthcare platforms must make the most of technology to ensure benefits management and utilisation is automated and doesn’t require manual intervention. This is an aspect that we’ve focused on from day one at Onsurity.
Demonstrating the return on investment through success stories can be persuasive. Additionally, advocating for government incentives, such as tax benefits, can reduce the financial burden on SMEs. Providing comprehensive support during the onboarding process and promoting a holistic approach to employee well-being that includes physical, mental, and financial health, are also important. By taking these steps, we can encourage more SMEs to adopt comprehensive healthcare coverage, benefiting both businesses and their employees.
Q/ What do you think the future holds for SMEs in terms of health and wellness insurances for employees?
As awareness around employee well-being continues to grow, we will see a significant increase in the adoption of comprehensive health and wellness programs by SMEs. Tech advancements will make healthcare more accessible and customised, allowing SMEs to offer tailored plans that meet the specific needs of their workforce. We are already seeing that more SMEs are now inclined towards including coverage for a host of new age and disease-specific procedures such as IVF treatment, Egg freezing, Cancer etc. This will continue to see increased demand.
As younger, health-conscious employees enter the workforce, the demand for holistic wellness benefits will rise. Government policies and incentives may further support this trend, making it easier for SMEs to provide these essential benefits. Overall, we look forward to a more robust and inclusive approach to employee health and wellness in the SME sector, leading to healthier, more productive workplaces which will contribute to the rapid growth of our economy.
Kulin Shah is the co-founder and Chief Operating Officer at Onsurity. With over 12 years of startups experience, he predominantly drives growth and partnerships at the organisation. In addition to this, he brings the vision of a changemaker—constantly driving the company towards achieving bigger milestones.
