Star Health & Allied Insurance, India’s largest standalone health insurer, is expanding its presence in the insurance market. The company aims to reach a gross written premium (GWP) of Rs 30,000 crore by FY28, with a target of Rs 20,000 crore for FY26. To achieve this goal, Star Health is focusing on deepening its presence in Tier II and III cities, expanding its agency force, and distribution network. Despite the muted growth in health insurance premiums, the company believes that health insurance remains a multi-decade growth opportunity due to low penetration rates and rising healthcare costs.
To keep its loss ratios in check, Star Health has established a network of over 15,000 hospitals, with pricing arrangements with almost 5,000 of them. The company is also improving its technology platforms to identify abuse and fraud, and takes price revisions when necessary. With medical inflation in India being the highest among developing countries, Star Health may consider price hikes in the future, but only when a product’s loss ratio crosses a certain threshold.
In addition to its health insurance business, Star Health is planning to enter the life insurance space. The company is waiting for the Insurance Amendment Bill, 2025 to be introduced, which will allow it to explore opportunities in the life insurance sector. Star Health sees a big opportunity in the protection space, particularly with term life insurance plans, which is a natural adjacency for its customer base. The company’s board has given the green signal to explore such options, and Star Health will take a call once the regulations are in place.
Overall, Star Health is well-positioned to achieve its growth targets and expand its presence in the insurance market. With its focus on retail health and group health, the company is confident that it can continue to grow and provide critical health insurance coverage to the middle and upper-middle income segments. The planned entry into the life insurance space will also provide a new avenue for growth and allow Star Health to offer a more comprehensive range of insurance products to its customers.