In this month’s ITC Asia Food for Thought, we explored a concept called “BYOC”. The way we work has changed—so why hasn’t employee insurance kept up? Just as the Bring Your Own Device (BYOD) movement transformed workplace technology, a similar shift is happening in insurance with Bring Your Own Cover (BYOC). In this article, Varun Mittal, Founder, Fintech Nation and Head of Innovation & Ecosystem, Singlife explores how BYOC is reshaping traditional corporate insurance, reducing inefficiencies, and offering employees greater control over their coverage. Could this be the next major shift in employee benefits?

— Here on is written by Varun Mittal, Founder, Fintech Nation and Head of Innovation & Ecosystem, Singlife

In today’s dynamic work environment, employees frequently oscillate between full-time positions, freelance work, contract roles, and seasonal opportunities. This transient workforce is reshaping traditional employee benefits, paving the way for a new insurance model—Bring Your Own Cover (BYOC). To understand this trend, we can draw parallels with a revolution that occurred in workplace technology two decades ago: Bring Your Own Device (BYOD).

The BYOD Revolution

Twenty to twenty-five years ago, companies issued employees dedicated landline numbers. This evolved into company-provided mobile phones, like Blackberries, about 15-20 years ago. However, with the proliferation of smartphones like the iPhone, employees began expecting similar devices and functionality in their professional lives. This expectation led to the emergence of BYOD, a paradigm shift in workplace technology.

Several key factors triggered the BYOD wave:

• Strain on IT Resources: Company IT departments struggled to meet employee demands for modern devices and application ecosystems. They were also burdened with managing hardware replacements and repairs.

• Lifestyle and Productivity Apps: Employees were already using advanced devices in their personal lives, equipped with apps that boosted both productivity and lifestyle convenience.

• Device Redundancy: Carrying separate devices for personal and professional use became cumbersome for employees, driving the need for an integrated solution.

The Parallel in Insurance: BYOC

The insurance world is now experiencing a similar transformation with BYOC. Here’s how the trend mirrors BYOD:

• HR Challenges: Employers want to offer competitive benefits to attract and retain talent but face challenges in meeting the diverse and growing demands of employees.

• Redundant Coverage: Employees often have overlapping personal and corporate insurance policies, leading to inefficiencies in premium allocation and underutilization of benefits.

• Administrative Burden: HR departments are increasingly open to letting employees bring their own insurance cover, offering cash subsidies instead. This reduces administrative complexities while empowering employees to tailor their coverage.

BYOC: Addressing the Needs of Transient Workers

A significant driver of BYOC is the rise of transient workers who frequently transition between corporate and self-employed roles. Many such employees wish to retain their corporate insurance coverage, often paying out of pocket to maintain continuity. This includes preserving their coverage history and ensuring protection for themselves and their families.

To address this demand, some insurers provide value-added services that allow departing employees to extend their corporate coverage. This service is particularly relevant in industries with a high turnover of short-term employees, where employers opt to reimburse insurance costs instead of onboarding them into the primary corporate plan.

BYOC as a Competitive Edge for SMEs and Marketplaces

Employee benefits insurance is increasingly competing with personal coverage. Just as BYOD unlocked workplace productivity by embracing the devices employees were already using, BYOC could revolutionize employee insurance by addressing:

• Flexibility: Employees demand insurance solutions that align with their personal and professional needs.

• Efficiency: Allowing employees to manage their own insurance coverage reduces redundancy and ensures better utilization of premiums.

• Productivity: Addressing health concerns through tailored insurance plans can mitigate productivity losses stemming from physical and mental health issues.

The Bigger Picture

The adoption of BYOC has broader implications for workplace productivity and economic development. Lost productivity due to health issues is a more significant threat to growth than inflation. Despite this, employee benefits insurance has often been sidelined as a low-margin product, used primarily as a gateway to more profitable retail insurance offerings. However, BYOC presents an opportunity to reimagine employee insurance as a strategic advantage rather than a mere cost center.

Conclusion

The BYOD revolution transformed workplace technology by embracing the personal devices employees were already using. Similarly, BYOC has the potential to reshape employee benefits by aligning corporate insurance offerings with employees' personal needs and preferences. As the workforce continues to evolve, the insurance industry must adapt, fostering a BYOC revolution that addresses the demands of modern employees while enhancing productivity and economic growth.