Rising Healthcare Costs Overtake Job Security and EMIs as the Biggest Financial Concern for Corporate India: TATA AIG’s The Corporate Health Protection Pulse 2026

Rising Healthcare Costs Become a Major Financial Concern for Corporate India

Mumbai, August 10, 2026: TATA AIG General Insurance Company today released the findings of its latest study on the evolving healthcare concerns of corporate employees, titled The Corporate Health Protection Pulse 2026. The study found that rising healthcare costs have emerged as one of the foremost concerns for corporate employees, surpassing concerns related to job security, EMI obligations and global instability, among other concerns. The study also underscores the growing financial burden of healthcare on India’s workforce. Nearly 94% of respondents said unexpected medical expenses cause them financial stress, making it a bigger concern than job loss or career stagnation. At the same time, financial resilience remained limited, with only 12% believing they could manage financially for more than a year without a job. The findings indicate that many corporate employees may not be adequately prepared to withstand a prolonged loss of income. Nearly seven in ten respondents said they could sustain themselves financially for only six months or less during a job loss. The cost of hospitalisation, lifestyle diseases, health cover for family, mental health and lack of savings for emergencies emerged as the top five healthcare-related concerns for corporate India. These findings reflect the growing need for stronger financial preparedness and comprehensive health protection among the corporate workforce.

Healthcare Expenses Remain a Key Concern During Job Transitions

The study further identifies healthcare expenses as the biggest financial concern during a job transition, surpassing concerns related to loss of income and EMI obligations. This concern is further exacerbated by a significant awareness gap among respondents. While 88% consider uninterrupted health insurance coverage during a job change important, only 40% are aware of solutions that can ensure continuity of medical cover. This highlights a strong need to raise awareness about health insurance options and continuity of coverage during the critical phase of job transition. This gap becomes particularly important as employees may experience changes in their employer-provided health insurance coverage when transitioning between jobs. Greater awareness can help employees understand their options and make informed decisions regarding continued health protection.

TATA AIG Highlights the Need for Greater Health Insurance Awareness

Sharing his perspective on the study, Dr. Santosh Puri, Head of Retail – Health Underwriting at TATA AIG General Insurance, said: “Our aim with this study was to better understand how corporate employees perceive their employer-provided health insurance and to identify the gaps that continue to exist in awareness and preparedness. While Group Medical Cover remains an important pillar of employee wellbeing, the findings show that many individuals are still uncertain about the extent of their coverage and whether it would be adequate during a medical emergency or a job transition. As healthcare costs continue to rise, we believe awareness and financial preparedness will become increasingly important. We hope these insights encourage employees to make informed decisions about their health protection needs and foster greater collaboration between employers, insurers and policymakers to build a more financially resilient workforce.”

Group Medical Cover Reveals a Significant Protection Gap

A deeper look at employer-provided Group Medical Cover (GMC) reveals a significant protection gap. While 84% of respondents believe it is important to have additional health coverage alongside their employer-provided GMC, nearly 45% do not have any additional health insurance beyond their employer-provided cover. Lack of awareness and a ‘will buy later’ attitude emerged as key barriers to purchasing additional health insurance, especially among respondents in the 28–34 age group. The findings indicate that although employees recognise the importance of additional health protection, this awareness does not always translate into action. This highlights an opportunity to improve understanding around the role of personal health insurance and additional coverage alongside employer-provided GMC.

Employer-Provided GMC May Not Be Sufficient for Emergency Hospitalisation

Another key finding from the study points to a protection gap: while a significant number of employees are satisfied with their Group Medical Coverage (GMC), they are not necessarily confident about the adequacy of their coverage. Nearly 75% agree that employer-provided GMC alone would not be sufficient in the event of emergency hospitalisation. This highlights the importance of employees understanding the extent of their existing coverage and assessing whether it adequately meets their healthcare and financial protection needs.

Awareness of Group Medical Cover Features Remains Limited

The survey also brings to light critical gaps in employees’ understanding of the scope and limitations of employer-provided health insurance. Only 41% of corporate employees said they are fully aware of all the features and benefits of their employer-provided GMC, highlighting the need for greater awareness and understanding of GMC among employees. A better understanding of policy features, coverage and limitations can enable employees to make more informed decisions about their health protection and identify potential gaps in their existing coverage.

Family Protection Drives the Need for Additional Health Insurance

Family protection continues to be the strongest driver for purchasing additional health insurance. Respondents cited higher sum insured, coverage for family members and continuity of coverage during job transitions as the most important features they would look for while evaluating a top-up plan. These preferences reflect a growing demand for protection that complements employer-provided GMC and provides additional financial security to employees and their families. The findings also highlight the importance of considering health protection beyond the workplace, particularly when employees are looking to secure coverage for their families and maintain continuity of protection during changes in employment.

Building a More Financially Resilient Corporate Workforce

Collectively, the findings of The Corporate Health Protection Pulse 2026 reinforce that meaningful health protection extends beyond employer-provided insurance to include adequate coverage, informed decision-making and continuity of protection. As healthcare costs continue to rise and employees face increasing financial uncertainties, closing these protection and awareness gaps will be essential to building a healthier and more financially resilient workforce. The study surveyed over 748 corporate employees aged 28–55 years across Mumbai, Delhi, Bengaluru, Hyderabad, Chennai, Ahmedabad, Pune and Kolkata. All respondents were covered under a Group Medical Cover (GMC) policy provided by their employer.

About TATA AIG General Insurance Company

TATA AIG General Insurance Company Limited is a joint venture company between the TATA Group and American International Group (AIG). TATA AIG General Insurance Company Limited celebrates 25 years of service this year, since it commenced operations in India on January 22, 2001. The Company has grown strongly to emerge as one of the preferred private general insurance companies in India, with several pioneering firsts to its credit. Driven by a mission to create a better tomorrow for customers by delivering trustworthy and innovative insurance products, TATA AIG’s broad portfolio of protection covers for businesses and individuals is backed by years of professional expertise in product offerings, service capabilities and seamless claims process management. TATA AIG General Insurance Company Limited has a robust multi-channel distribution network, with a presence across 262+ locations, employing 1,100+ full-time claim experts, with tie-ups with 6,500+ workshops and 13,000 network hospitals. The Company also has a worldwide network of claim servicing partners and a dedicated customer service and operations team, consistently delivering desired customer service experiences powered by the latest innovations in technology.

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This white paper has been developed by carrying out primary market research. The scores for the scaled questions are aggregate responses of the top two boxes from the survey. Readers or any users of this data are cautioned that this combined score does not represent uniform agreement and should not be interpreted as such in any further analysis, reporting or decision-making. For a complete understanding of respondent views, reference to the original survey data is essential. Cross-referencing of available data points was also carried out. To the extent possible, the data has been verified and validated on a best-effort basis. However, there can be no guarantee that the information contained in the white paper is correct as of the date it is received or that it will continue to be correct in the future. TATA AIG and the research agency do not take any responsibility for the veracity of the underlying data. Use of this white paper is at the sole discretion of the reader, and the research agency will not take any responsibility for the same in any manner, including but not limited to any interpretation or conclusions drawn from the same in any manner. Please seek professional guidance/opinion prior to using the information provided in this white paper for any decision-making. There is no regulatory or business advice provided in this white paper. By reading this white paper, the reader shall be deemed to have accepted the terms and conditions of use mentioned in this paragraph. Despite our best efforts, errors do occur in this report, which we may correct when brought to our notice. Please use the latest updated version. Readers cannot extract, refer to or quote/unquote the content of this white paper using any brand name, trademark or logo without the express written consent of TATA AIG. Any and all intellectual property associated with this white paper vests with TATA AIG.