Medical Inflation Reshapes Corporate Insurance: Marsh Report Reveals Key Shifts

• Indian companies are recalibrating employee benefits due to a 9.9% projected medical trend rate by 2026, as per Marsh’s Mercer Marsh Benefits (MMB) India report.
• 41% of employers increased health insurance sum insured; cost-control measures like co-payments and room rent restrictions are widely adopted.
• Parental insurance shifts towards co-sponsored models (29%), while OPD coverage expands, with 43% of employers now offering it, including dental, vision, and diagnostics.
• Flexible benefit programs are growing, with one in three organizations offering flex models and 85% of employees willing to spend out-of-pocket for enhanced benefits.
• Core insurance (Group Personal Accident, Group Term Life) remains prevalent, and wellbeing programs, including health check-ups and EAPs, are broadening.