AstraZeneca Pharma India has become the first company in India to buy a group cancer care policy that sits on top of its existing group health insurance, covering nearly 25,000 employees and their family members, according to a report by The Times of India.
Product Innovation
The policy, structured by Howden India Insurance Brokers with a private insurer, is designed to supplement rather than replace the employer's base group medical cover. Amit Agarwal, CEO of Howden India, told TOI that the product had never before been placed in the Indian market and that it needed almost a year to develop. "This was a basic need that we identified, and we've been working on it for almost a year to basically thrash out the edges on this product," Agarwal said.
Under the structure, companies continue to purchase their regular group health policy while deciding how much additional cancer cover they want. The product differs from retail cancer insurance because it has been built for employer-sponsored health plans and covers employees with pre-existing diseases. "Most of the cancer products that were available in the market were available on an individual basis," Agarwal explained. "Because we have made it in a corporate construct, even if you have a pre-existing disease, it gets taken care of." He added that where the base group medical policy excludes certain cancer treatments, "this policy will drop down as well and cover you from ground up."
Market Context
Most companies buy group medical insurance with a sum insured of Rs 3 lakh to Rs 5 lakh, but cancer treatment often costs several times more. The additional cover is designed to meet expenses once the underlying group health policy is exhausted and also pays for certain cancer-related treatments not covered under the base policy. Agarwal noted, "Although cancer-related treatment is covered under your GMC policy, the insurance limits are pretty less. On average, Indian corporates buy anywhere between Rs 3 lakh to Rs 5 lakh. God forbid, if somebody actually faces a cancer kind of a challenge. These policy limits were not enough."
He said discussions with another 10-12 employers are in the pipeline, indicating growing interest. Howden spent nearly a year developing the cancer care product with insurers before placing the first policy.
Implications for Employers
This development reflects a shift in how Indian companies view health benefits. Agarwal observed that group health, when it started, was taken more as a retention tool, but today most policies are a standard inclusion in compensation packages. He noted a big trend towards outpatient (OPD) and wellness benefits, which are used by 50-60% of employees annually, compared to inpatient care used by only 9-10%. "A lot of these companies are investing heavily in OPD," he said.
For CFOs and HR leaders, such top-up policies represent a way to manage the financial risk of catastrophic illness while enhancing employee benefits. However, pricing and long-term viability remain unproven. Agarwal said the product would need at least 100 corporate policies and 12 to 24 months of claims experience before its pricing and long-term profitability could be assessed.
AstraZeneca's move could set a precedent for other large employers, particularly those in industries with high exposure to serious diseases or a need to attract and retain top talent. As cancer treatment costs continue to rise, group cancer top-up policies may become a standard feature of corporate health plans in India.
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