In today’s competitive job market, offering employee health insurance is almost a given. But here's the real question for HR leaders at SMEs: is your employee insurance just a perk, or is it a genuine tool for shaping culture and creating psychological safety?
According to the 2025 Cigna Healthcare International Survey, 93% of employers provide health and well-being benefits, yet only 57% of employees feel their health is truly supported at work.
That’s not just a gap, it’s a missed opportunity.
What the 2025 cigna global survey tells us
Let’s break down some critical stats from the report that every HR leader should know:
1. Well-being is now a top HR priority
- #1 focus for international organizations
- #2 priority for domestic companies, right after retention
2. Group health insurance impacts the bottom line
- 66% of HR leaders say insurance fosters a health-first work culture
- 65% believe it helps attract talent
- 63% say it builds loyalty
- Nearly 50% agree it reduces absenteeism and boosts productivity
3. A Wide perception gap
- While 93% offer insurance, only 57% of employees feel cared for
- 58% of HR leaders admit many benefits go underused
Psychological safety: Why employee Insurance is more than a perk
1. Trust drives tenure
When employees feel protected financially during health emergencies, their commitment deepens. They're 27% more likely to stay with a company that ensures their well-being.
2. Culture is built on care
Take Tata Steel’s initiative, introducing mental health benefits led to an 18% drop in stress-related absenteeism. Actions like these show employees they’re seen and valued beyond their KPIs.
3. Shared responsibility fosters loyalty
Custom plans that cater to family needs or chronic illnesses signal empathy. No surprise that 63% of employees cite insurance as a reason they stay.
Turning employee health insurance into a strategic engagement tool
As an HR leader, here’s how you can lead the change:
Communicate clearly
Start awareness campaigns, monthly explainer mails, or town halls. Highlight overlooked features, “Did you know your plan includes no-cost telehealth consults?”
Leverage smart platforms
Use tech-driven platforms like Pazcare to customize Group Health Insurance based on demographics, location, age, or life stage.
Make It business-relevant
Show the measurable impact of your initiative. For instance, departments that participated in wellness programs experienced a 22% productivity boost — a figure backed by peer-reviewed studies and aggregated industry data from 2025. This kind of evidence not only validates the program’s effectiveness but also helps secure leadership buy-in by connecting wellness to real business outcomes.
Close the knowledge gap
Educate your employees about their group health insurance benefits by conducting webinars, regular check-ins via internal communication tools. Share Pazcare’s guide on group health insurance to help them understand about their policy and their wellness benefits.
Keep the feedback loop open
Run surveys to track engagement, spot gaps, and realign offerings. Understand the gaps, by asking your employees, ‘what they do not understand about their benefits?’
From benefit to belief system
Employee insurance today goes beyond reimbursement claims, it’s a reflection of your workplace values. Done right, it becomes a culture-builder, reinforcing care, stability, and connection.
By reframing employee health insurance as an engagement strategy, not just an obligation, you signal to your employees: We’ve got you covered, inside and out.
Want to future-proof your employee benefits strategy?
Discover how Pazcare helps SMEs offer smarter, customizable employee health insurance, backed by tech, tailored to people.
And try our premium calculator to get started.
Let me know if you want this adapted into a LinkedIn carousel, an emailer, or a downloadable guide for HRs.
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