In an era where health and well-being are essential values, providing comprehensive health insurance to employees is not just a privilege, but a necessity for companies, and voluntary health insurance is a growing segment of the insurance market in Serbia.
The number of contracts for voluntary private health insurance and insured individuals in the first three quarters of 2023 has significantly increased compared to the same period in 2022. This growth is characterized as a result of a series of factors, including increased awareness of the benefits of voluntary health insurance and a broader range of products available from insurers.
Data from the National Bank of Serbia for 2023 and 2022 provide the following insight:
| Type of insurance | Participation in total premium (%) | Premium growth (%) (Q2 2023 vs. Q2 2022) | Total premium (RSD) in Q2 2023 |
|---|---|---|---|
| Voluntary health insurance | 10.5 | 51.6 | 8.213.502.000 |
Note: Participation in the total premium is expressed in percentages, as is the premium growth for Q2 2023 compared to Q2 2022. Q2 represents the second quarter of the year – the period from April 1st to June 30th. The total premium (RSD) in Q2 2023 represents the amount for the period from April 1st to June 30th, 2023.
The share of non-life insurance at 81.5% of the total premium continues to dominate, and the premium for non-life insurance has grown by 18.7%. Looking at the types of insurance, the structure of the total premium in the second quarter of 2023 has somewhat changed compared to the structure in the same period in 2022. Liability insurance due to the use of motor vehicles still holds the largest share of the total premium at 28.7%, followed by property insurance at 21.4%, and life insurance at 18.5%. However, in the observed period, starting from Q1 2023, voluntary health insurance with a 10.5% share of the total premium records a higher share than motor vehicle insurance – casco (10.2%).
With the increasing awareness of the necessity of private health insurance, the costs that employers provide are exponentially growing, which represents a significant financial burden for business owners. However, there are numerous strategies that companies can use to manage these rising costs, while ensuring that employees receive quality health insurance coverage, with reduced costs per company, without compromising employee benefits.
Strategic Planning in Insurance Contracting
The company should conduct a thorough analysis of various options for voluntary health insurance. By contacting multiple health insurance providers and negotiating, it is possible to obtain better prices or even additional benefits. The decision on choosing the insurance company and appropriate coverage should be carefully considered, to align with the needs of the employees and the company's budget.
Cost-Sharing for Health Services
The company might consider contracting an insurance policy where there is a certain level of cost-sharing for medical expenses. Taking on part of the costs for health services by the company or the employees, or sharing the costs before the insurance company begins to cover them, can significantly reduce monthly insurance premiums.
Employee Education
Companies should carefully consider and be familiar with the private health insurance policy they contract for their employees. Understanding the scope of coverage, claims filing procedures, and other aspects of the contracted policy is crucial for both employees and the company to use it in the most appropriate way possible.
Prevention Through a Healthy Lifestyle
Investing in employee health and prevention can help reduce the need for frequent medical interventions, and thus lower insurance costs. By raising employees' awareness about a healthy lifestyle, informing them about insurance coverages, informing about sharing costs with the company, and how to utilize preventive services, the need for expensive medical treatments can be reduced.
Telemedicine
Telemedicine is becoming increasingly accessible in Serbia. It involves the use of electronic communication technologies in providing and delivering health care and is suitable for use in counseling and diagnostics for non-emergency cases. This can reduce the costs of doctor visits and transportation to hospitals.
Annual Review of Policies and Their Adjustment
The costs of health care and the offerings from insurance companies are constantly changing. As insurance contractors, companies should annually monitor their policies and adjust them to market changes and the needs of their employees in order to maintain affordable premiums and competitive insurance conditions.
The premium for voluntary health insurance is experiencing significant growth, reflecting a pervasive awareness of the importance of health, especially after the pandemic. The decision to invest in our health is becoming increasingly important, both for individuals and for companies. Voluntary health insurance not only provides peace and protection to employees, but also offers additional benefits to organizations which provide it, enhancing the overall well-being and productivity of employees.