SINGAPORE – More companies here are including mental health benefits in their corporate insurance coverage, heeding the clarion call that emerged during the Covid-19 pandemic to take mental wellness more seriously.

Insurers that The Straits Times spoke to said the uptake of such benefits was low before the pandemic but has steadily increased over the past few years.

This is because businesses recognise that workers are seeking companies that prioritise their staff’s holistic well-being, and such benefits can go a long way in attracting and retaining talent.

AIA Singapore said that before 2020, less than 1 per cent of its corporate customers included mental health coverage. But the figure rose to about 10 per cent in 2023.

For Mercer Singapore, the number of companies requesting the inclusion of mental health coverage in their medical benefits has increased from 6 per cent in 2019 to 10 per cent in 2021.

Great Eastern said the percentage of companies that have opted to cover mental health consultations with general practitioners has jumped from 2.2 per cent in 2019 to 16.8 per cent as at April 2023. Uptake of coverage for referrals to specialists has increased from 0.9 per cent in 2019 to 7.7 per cent in April 2023.

Similarly, Income Insurance saw about a 10 per cent increase in requests by employers to include mental health benefits post-pandemic.

Mercer Singapore president Neil Narale said many white-collar employees had worked at home during the pandemic, and, with issues of burnout in the spotlight, many companies have started to recognise the importance of looking after their staff’s mental health.

“Mental health is a concern that employees have voiced in virtually every employee virtual engagement survey that we read. As a result, employers are actively improving that coverage, just to make sure employees feel like they are being listened to,” said Mr Narale.

Mr Kenneth Tan, chief corporate solutions officer of AIA Singapore, said providing mental health benefits to staff is also part of efforts to retain talent as employees will more likely feel valued and motivated. This will, in turn, positively impact the company’s bottom line.

Employers recognise that staff mental well-being is integral to productivity and a sense of fulfilment at work, said Mr Jeff Ang, head of enterprise business solutions at Prudential Singapore.

Coverage from the various insurers spans a range of benefits, including 24/7 counselling hotlines, consultations with general practitioners, referrals to specialist outpatient services provided by the likes of psychiatrists and clinical psychologists, medication, and inpatient psychiatric treatment.

The type of policy or coverage selected by the companies can differ based on factors such as budget and the organisation’s philosophy on employee coverage, benefits and compensation, insurers said.

Multinational corporations (MNCs), which are more well-resourced, make up a larger proportion of those including mental health benefits, and have more comprehensive coverage, the insurers added.

Ms Grace Lee, the head of group insurance marketing at Great Eastern, said MNCs typically include benefits at the clinical-care level, which includes access to outpatient and inpatient treatment.

Small and medium-sized enterprises are more cautious in structuring their benefits, preferring to start with basic inclusions like having a 24/7 counselling hotline, she added.

Mental health benefits are cost-effective for companies.

Ms Lee added: “Better well-being support improves the physical wellness of people. You’ve reduced MC rates and increased productivity of employees. Because people are healthier, that has resulted in claims and medical costs (for the company) going down.”

Mr Narale said Mercer Singapore has observed that MNCs which offered mental health benefits before the pandemic have decided to expand on these after the pandemic.

He added that the median mental health coverage limit has risen from $750 to $5,000 per policy year from 2019 to 2021. Companies that raised their claim limits could have had their premiums rise by up to 10 per cent, though most try to limit the hike to about 5 per cent.

“If budgets are a constraint as insurance premiums are escalating, then companies should look at other preventive measures. An example could be training people managers and creating some best practices within the organisation to ensure that the risk of mental health challenges is reduced,” said Mr Narale.

Insurers added that companies are also tapping more well-being programmes and workshops or enhancing their employee assistance programmes to enhance their mental health efforts in the workplace.

For example, Great Eastern said that companies used to request health talks on chronic conditions like high blood pressure, but, in the past six months, 90 per cent of the requests have been related to mental health.

Prudential has organised three times more events under its health and wellness programme in 2022 than in 2019. Events included stress management talks by psychologists, and various fitness activities to help employees achieve better work-life balance.

Companies that have included mental health benefits have reported an uptick in employee satisfaction.

Singtel said that since the onset of the pandemic, it has provided coverage for outpatient and inpatient psychiatric and psychological therapy at government restructured hospitals and polyclinics.

The telco is also using a mental health app, Intellect, which allows its staff to access complimentary self-care programmes 24/7, as well as behavioural health coaching sessions with licensed therapists.

Such efforts have been well received, with 79 per cent of its staff sharing that they believe the organisation cares about their well-being, Singtel said.

Financial services group Nomura incorporated outpatient mental care into its medical insurance coverage in 2021.

Employees and their enrolled dependants are entitled to an annual mental health care limit of $3,000 each, covering treatments provided by psychologists and psychiatrists. This is on top of an employee assistance programme which provides 24/7 counselling support.

“Providing mental health coverage can also alleviate the financial strain on employees when accessing necessary care, thereby mitigating an additional source of stress,” said a company spokesman, adding that employees themselves have been more open to seeking help when necessary.