By the conclusion of the fiscal year (FY28), leading health insurance provider Star Health and Allied Insurance Co Ltd hopes to have doubled its gross written premium (GWP) to ₹30,000 crore. This difficult goal will be achieved by increasing market penetration in both urban and rural areas. The gross domestic product (GWP) of the Chennai-based company increased at a compound annual growth rate (CAGR) of 24% between FY20 and FY24, from ₹12,951 crore in FY23 to ₹15,251 crore in FY24.
This goal was stated by managing director and CEO Anand Roy, who also highlighted the market’s substantial opportunities for health insurance. Roy stressed that the company’s objective is to achieve, in the next four years, the same level of success that it did in the preceding eighteen. He expressed optimism that their strategies, which gave priority to increasing market penetration in rural areas and growing market share in cities, would enable them to reach the ₹30,000 crore GWP target.
Star Health is a well-known brand in other Indian states and holds a market share of over 50% in its home state of Tamil Nadu. The company issued more than 12.5 lakh policies in Tamil Nadu alone, and in FY24, it collected more than ₹2,000 crore in premiums.
Roy pointed out that the Indian health insurance market still has a lot of unrealized potential for growth. He continued by saying that Star Health intends to grow faster than the industry while maintaining profitability.
The company has excellent financial standing, as evidenced by its solvency ratio of 2.2 times, which is much greater than the IRDAI guideline of 1.5 times. In the latest fiscal year, Star Health reported a profit after taxes of ₹845 crore, a 37% increase over the previous year.
On Wednesday, Star Health made the announcement that it will start providing in-home healthcare services to its consumers in about 50 Indian locations. The organization has partnered with Care24, Portea, CallHealth, Athulya Homecare, and Argala to offer in-home medical care. Consumers can obtain 100% cashless home healthcare facilities for a range of infectious diseases by using the company’s app or a toll-free phone. These services are available for all 57 Star Health product lines, and the entire insured amount will be subtracted for them.
Star Health has approved claims of about ₹44,000 crore since its establishment in 2006. The company’s network consists of 60,000 agents, 116 branches, 187 rural branches, and around 3,400 employees. With an emphasis on digital technology, the company has settled 88% of claims without using cash.
Roy emphasized that the company’s strategy will be to capitalize on increased market penetration, particularly in tier II and III cities, in order to accomplish its expansion ambitions.
