GROWING MARKET OF SMALL GROUP HEALTH INSURANCE

As awareness is increasing in society regarding health care more and more people are opting for health insurance. With this increase in awareness and people getting more and more health-conscious day by day market for health insurance is increasing day by day. Not only individuals are opting for health insurance but even business groups are providing health coverage to their employees. Big companies have always given incentives to their employees but the recent trend is that even small businesses are providing health insurance to their employees. This trend of small businesses giving health insurance to their employees has led to growth in the market of small group health insurance, which has been an underperformer for quite some time. 

In a recent study, it was shown that between 2013 and 2020 about fifty per cent of small firm employees worked in such firms that provided health insurance and in comparison to this in the same period about 99 per cent of big firm employees were covered under health insurance. Small group insurance has been a steady performer for quite some time now. But despite being a slight underperformer small group insurance has been an important source for employees of small firms. Even during the pandemic, it was quite stable and slowly but in steady way this section of health insurance. Even during the pre-pandemic period, it was pretty stable. 

So far we have understood that small group insurance has been a pretty steady performer in the insurance sector, but the recent trends are suggesting that there is slight growth in it. Though growth in this segment of health insurance has not outsized the overall growth of health insurance it has been on the same line for sure, and given its past performance, it won't be wrong to say that it is very much impressive. And the biggest reason for this latest trend is a change in the mindset of small business owners who have now understood the importance of providing group health insurance to their employees. Also one has to say that another reason for this is some innovative steps taken by big leaders of the insurance market, they have designed new products keeping small businesses in mind. Health insurance for small business owners is now available which caters to their needs and requirements. The need was always felt for some innovative products which can fulfill the need of these small business owners, health insurance for small business owners is something which has always been discussed in the industry but now some steps are taken as well. 

Industry leaders have broadened their focus as well and now they want to cover those population which is yet to come under health coverage, with things like data analytics it has become a little easier for companies to formulate customized products as per the need of the end consumer. The same is done in the health insurance sector as well. Similarly, there is health insurance for small business owners with no employees, such products have only been designed after companies have started to use data analytics in formulating their products. Products like health insurance for small business owners with no employee not only bring in business for the company but also fulfill the social responsibility of big insurance houses. 

Overall small group insurance segment has shown some growth recently which suggests that this segment may become even more important in the future.