Why health insurance is crucial for HR leaders

About nine in 10 employers prioritise health benefits in employee value proposition.

Singapore’s human resources leaders believe that health insurance is vital when it comes to reinforcing a company’s health programme, with 72% of respondents agreeing to this.

“To attract and retain top talent and empower employees to perform at their best, employers need to offer a holistic set of employee value propositions that address everyone’s needs and aspirations where they are at. This includes robust health and well-being benefits, which may include health insurance, and fostering a workplace culture that prioritizes employees’ health and vitality,” Raymond Ng, CEO and Country Manager, Cigna Healthcare Singapore & Australia, said in a media release.

Health benefits are a prevalent Employee Value Proposition (EVP) in Singapore, with 89% of employers offering them. However, recent research from Cigna Healthcare reveals that underutilisation of these services and the cost of providing comprehensive plans may limit their effectiveness. 

HR leaders report that these benefits help improve productivity and engagement, with 62% noting they reduce working hours, 60% reducing sick days, and 58% cutting absenteeism. 

Health benefits rank as a top EVP for attracting talent, tied with flexible work arrangements and behind career progression. For existing employees, flexible time off and working arrangements are most valued (26%), followed by a positive working environment (24%) and health benefits (22%). 

Despite the widespread availability of health benefits, only half (52%) of employees feel their employers actively support their health and well-being. 

This is reflected in the high underutilisation rates reported by 65% of HR leaders in Singapore, the highest amongst the five markets surveyed. Cost remains a significant barrier, with nearly half (48%) of employers not offering richer benefits citing financial constraints.

To maximise the impact of health benefits, employers should focus on increasing awareness, accessibility, and alignment with employee needs. Regular reviews of benefit offerings can help ensure they meet employees’ evolving needs effectively.

The Cigna Healthcare International Health Study, titled “Harnessing Health – Measuring the Impact of Employee Health and Well-being Benefits”, surveyed 1,000 managers and directors globally, including 200 in Singapore. The study benchmarks how employers integrate health and well-being benefits into their EVPs and the resulting impacts.