Summary of this article
A Tata AIG study finds 31 per cent of corporate employees are most anxious about healthcare costs, ahead of inflation (25 per cent) and job loss (11 per cent).
Around 38 per cent feel their employer-provided group medical cover is inadequate and creates a false sense of security.
While 88 per cent see continuity of health cover during job transitions as critical, only 40 per cent know the available options.
A new study titled The Corporate Health Protection Pulse 2026, conducted by Tata AIG, shows a significant shift in the priorities of the Indian workforce, due to extreme concerns regarding medical inflation. Healthcare expenses have emerged as the primary cause of anxiety for corporate employees, surpassing even the fear of job loss or the equated monthly instalments (EMIs).
According to the study, 31 per cent of employees have said they are extremely concerned about rising healthcare costs. The other major anxieties include the rising cost of living and inflation (25 per cent), job loss and layoffs (11 per cent), and salary stagnation and financial security of one’s family (10 per cent).
This reflects in the financial confidence of respondents, too, as 94 per cent of them feel extremely financially stressed when unexpected medical expenses arise. About 72 per cent of respondents also feel that a sudden hospitalisation will exceed their personal savings, and 55 per cent fear high out-of-pocket payments despite having insurance.
Perceived Inadequacy Of Group Medical Coverage
The report highlights a critical issue: the perceived inadequacy of prevailing employer-provided group medical coverage (GMC). According to the report, a substantial 76 per cent of employees feel that their corporate health cover would not be enough to manage a major medical emergency, and only 20 per cent of respondents believe that their employer-provided insurance plan is adequate to meet the needs of their entire family.
Around 38 per cent of employees feel that employer insurance creates a “false sense of security”, highlighting the fear attached to a job loss. Around 73 per cent of employees identify healthcare expenses as the first concern during a job switch or job loss, the report says.
Health Protection Gap
A huge 69 per cent of the workforce also reported that they can only sustain for six months or even less without a steady income, whereas 88 per cent of employees viewed the continuity of health insurance during job transition as an essential priority; however, only 40 per cent of employees said they know of options that offer continued coverage.
This protection gap is possibly driving a demand for additional insurance solutions, the report adds. According to the report, 29 per cent of employees still rely solely on GMC, which leaves them vulnerable to job changes. However, the report further notes a growing trend towards “All Three” coverage, showing around 29 per cent of employees have all three, combining GMC, personal health insurance, and top-up plans. Around 84 per cent of employees now consider having an additional coverage on top of their employer’s plan as extremely important, and 82 per cent say they would like to purchase a top-up plan from their GMC provider, the report further says.
Study Coverage
The research was conducted online by way of self-administered interviews with a total sample size of 748 corporate employees. It targeted both men and women aged between 28 and 55 years (74 per cent male and 26 per cent female earning an annual salary in the range of Rs 7.50 lakh-30 lakh, covered under GMC policy. The study was conducted in eight major Indian cities, including Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, and Ahmedabad.
