Large companies routinely invest in group insurance policies for risk management. One of the most affordable health insurance plans in the market, group health insurance, are mandatory for small and medium enterprises (SMEs) in the UAE too. Due to the many benefits provided by these plans, they act as vital tools to attract and retain employees.
Let’s take a look at various ways group medical insurance can benefit SMEs.
1. Customisation of Policies
For a small company, a group medical insurance policy can offer options for customisation that are not available for individual health insurance plans, such as:
- Inclusion of pre-existing diseases
- Maternity procedures benefit
- Waiver for waiting periods.
Moreover, group medical insurance can be tailored according to the company’s budget, the number of employees, and their requirements.
Group policies can provide a cost-effective way to drive employee satisfaction. For a small amount, companies can get a fairly large sum assured per person, which is a great support during times of emergencies.
3. Builds Resilience in SMEs
Small and medium-sized companies are found to be more vulnerable to risks, compared to large-sized companies. Personal risks of employers, as well as employees, hugely impact such businesses, apart from other business risks. A SME group health insurance plan can help address many of these vulnerabilities.
4. Rule of Law or Compliance Requirements
Many countries, including the UAE, mandate that all employers provide basic health insurance to employees. Thus, the decision to invest in a group insurance policy could be a legal requirement as well.
5. Adds Value to the Business
With access to tailored plans, SMEs can add value to their business and employees’ lives. This can help them drive productivity and recruit top talent.
SMEs should consider proper research before choosing the most suitable group plan, such that it matches the company’s future goals and employee requirements.