How SMEs in Singapore Can Save on Employee Health Insurance
For SMEs in Singapore, securing affordable and comprehensive corporate health insurance can feel like an impossible challenge. Business owners and HR professionals often struggle to balance limited budgets with the essential need for meaningful employee benefits, knowing that inadequate coverage can impact talent attraction and retention. You're likely caught between rising healthcare costs and your team's growing needs, unsure how to achieve vital benefits affordably.
But here's what many don't realize: Affordable and effective company health plans exist. We help our SME clients find better solutions. In this article we will demonstrate how you can offer robust employee benefits in Singapore without overextending your budget.
Why Employee Health Benefits Matter for SMEs in Singapore
Medical benefits are a critical factor in attracting and retaining top talent for SMEs in Singapore. Recent survey findings powerfully demonstrate this: medical insurance coverage is the most favoured benefit among Small & Medium Enterprises employees1.
Yet, a significant gap exists. Only 59% of SME employees reported their company provides medical benefits2. This disparity creates a tangible challenge for businesses, leading to higher turnover costs, diminished morale, and a less competitive employer brand.
In Singapore’s competitive hiring market, employee health benefits are no longer a "nice-to-have", they are an absolute essential. Talented professionals expect a baseline of medical coverage, and SMEs that fail to provide this risk losing valuable staff to larger firms offering comprehensive packages.
Therefore, offering medical insurance is not just a valued perk but a strategic advantage for SMEs, even micro-SMEs with fewer than 10 employees, aiming to secure and retain their workforce.
The High Cost of Traditional Corporate Health Insurance
For many SMEs in Singapore, traditional group health insurance plans pose a significant challenge. They often come with high premiums, rigid structures, and outdated features, making them a poor fit for today's dynamic workforce. These traditional models may lack essential coverages like mental health support or telemedicine, or simply offer one-size-fits-all policies that don't cater to diverse employee needs.
This inflexibility and prohibitive cost often leave SMEs feeling trapped. However, there's good news: a new wave of innovative, cost-effective alternatives is emerging, empowering SMEs to provide meaningful healthcare support without overextending their budgets.
Pitfalls of Employee Health Insurance: Underinsurance and Underutilization.
Beyond the initial premium, SMEs face a dual challenge:
- Underinsurance: Constrained by budget, many companies end up offering inadequate coverage. This leads to unhappy employees, higher turnover due to perceived lack of care, and increased workplace stress as staff face unexpected medical bills. Such business risks undermine the very purpose of offering benefits.
- Underutilization: Even when benefits are in place, they frequently go unused. This can be due to a lack of employee awareness, poor accessibility (eg., limited clinic networks, complex claims processes), or unpleasant past experiences. When benefits aren't utilized, the Return on Investment (ROI) is significantly reduced, weakening their value as a tool for employee engagement and overall well-being.
Top 5 Corporate Health Insurance Plans for SMEs
Running an SME in Singapore comes with many demands and choosing a suitable corporate health plan shouldn’t add to your stress. From hiring to growth to compliance, there’s already enough on your plate. Many SME owners struggle with balancing cost vs coverage, deciphering confusing fine print, and finding adequate HR administrative support.
That's where we come in. Leveraging our access to over 20 insurer solutions, we've helped many Singaporean SMEs design optimal health plans for their employees. Here’s a look at the top 5 SME health insurance plans in Singapore:
AIA Singapore Employee Benefits (eBenefits)
AIA has made substantial enhancements to its corporate insurance policies starting in 2025. This includes a first-in-market inpatient coverage for mental health care for its corporate customers, setting a new standard for comprehensive care. This inclusion reflects a growing awareness that mental wellness is part of overall health, and it's something SMEs can now offer affordably.
Singlife MyBenefits Plus
For SMEs seeking simplicity, Singlife offers guaranteed acceptance and group pricing with no medical underwriting up to S$150,000. This means quicker onboarding and less administrative hassle — ideal for growing companies that want fast, effective coverage without the paperwork. Employees get access to teleconsultation to skip clinic queues to focus on recovering at home.
Cigna Care Connect & Prime
Well-suited for SMEs with international teams or remote staff, Cigna provides global healthcare coverage with access to an extensive network of more than 1,000 providers and clinics. Their local servicing support adds reassurance for SMEs expanding regionally.
Great Eastern Great Employee Benefits Plus (GEB+)
GEB+ provides a modular structure that scales with your business, as their platform allows employers to easily customise coverage based on team size, budget, and evolving needs.
Prudential PRUTreasures Flexi Plan II
Prudential's group health plans are enhanced by built-in wellness and preventive care such as complimentary annual health screenings & flu vaccinations, WorkPLAYce wellness program offering curated activities targeted at physical, financial to mental wellness.
As employee expectations evolve, so too must the approach to benefits. These alternatives allow SMEs to be resourceful — offering value-driven health benefits that support recruitment, retention, and employee wellbeing without the high costs of traditional insurance. Here's where we can help!
How We Build Cost-Effective Health Coverage for SMEs
Comprehensive coverage is not only meant for the larger companies! We have worked with many SMEs to rethink and redesign their company's employee health insurance for better benefits without the high cost.
Real Case Study with 30% Cost Reduction
In a recent example, one of our clients was spending over $70,000 annually on employee health insurance. After a comprehensive review of their needs, we seamlessly transitioned them to a new provider offering similar, if not better, coverage – resulting in a remarkable 30% annual saving! This demonstrates the tangible cost reduction potential for them.
Our Approach: Extensive Access & Customization
So, what makes these significant savings and improved benefits possible? As Financial Consultants representing finexis advisory Pte Ltd, a leading financial advisory firm in Singapore, we partner with over 20 global insurers and employee benefits solution providers. This extensive access allows us to meticulously customize a plan that perfectly aligns with your unique business needs and budget, covering everything from health and dental to life, disability, retirement, and even investment benefits.
We recognize that many SMEs and HR professionals are simply unaware of the diverse alternatives available and the potential for substantial cost savings. This insight led us to create our signature offering:
Better Employee Health Benefits Programme
This customized programme is designed to not only slash your business expenses – with clients often saving over 30% annually – but also to significantly improve staff perks. Our process is entirely hassle-free for you:
- Strategic Evaluation: We thoroughly assess your existing employee health benefit needs.
- Customized Design: We then craft a tailored plan at your desired budget.
- Value-Added Partners: You gain exclusive access to our strategic partners like DiveDeals, Foundation Healthcare, and heritance Digital, offering improved medical benefits, exclusive perks & discounts, insider privileges, and vital mental wellness support – often at no extra cost.
To further support your team, we work closely with your HR department. Our goal is to eliminate administrative headaches by ensuring faster claims processing and turnaround times, freeing your HR team to focus on their core strategic responsibilities at your company.
Achieving the Balance: Better Health Benefits for Your SME
You no longer have to choose between cost-saving and comprehensive employee care. By implementing a strategic approach that combines flexible health insurance tiers, valuable wellness add-ons, and customized benefits, SMEs in Singapore can achieve smarter coverage without overspending.
This innovative way of structuring benefits empowers you to attract, reduce costs, and retain your top talent effectively.
Ready to unlock significant savings and elevate your employee benefits?
Contact us for a hassle-free, no-obligation consultation today!
- https://www.straitstimes.com/business/economy/employees-say-medical-benefits-big-push-factor-in-joining-smes-prudential-survey
- https://insuranceasia.com/insurance/news/medical-insurance-tops-sme-employee-benefits-prudential