Star Health Targets ₹30,000 Crore Premium by 2028, Launches Home Healthcare

Leading health insurance provider Star Health and Allied Insurance Co Ltd wants to double its gross written premium (GWP) to ₹30,000 crore by the end of the fiscal year (FY28). Through increased market penetration in both urban and rural locations, this challenging goal will be met. The Chennai-based business saw a 24% compound annual growth rate (CAGR) in its gross domestic product (GWP) between FY20 and FY24, rising from ₹12,951 crore in FY23 to ₹15,251 crore in FY24.

Anand Roy, the managing director and CEO, declared this objective and emphasized the significant prospects in the health insurance market. Roy emphasized that the company’s goal is to duplicate the accomplishments of the previous eighteen years within the next four years. He was optimistic that their plans, which prioritized greater market share growth in cities and enhanced market penetration in rural regions, would allow them to meet the ₹30,000 crore GWP target.

In Tamil Nadu, where it is based, Star Health has a market share of more than 50%, and it is also well-known in other Indian states. In Tamil Nadu alone, the business issued over 12.5 lakh policies and collected over ₹2,000 crore in premiums in FY24.

Roy noted that there is still a great deal of untapped potential for expansion in the Indian health insurance market. He added that Star Health wants to expand more quickly than the sector while still turning a profit.

With a solvency ratio of 2.2 times, which is significantly higher than the IRDAI standard of 1.5 times, the company’s financial standing is strong. Star Health recorded a ₹845 crore profit after taxes in the most recent fiscal year, a 37% rise over the prior year.

Star Health announced on Wednesday that it will begin offering its clients in roughly 50 Indian cities in-home healthcare services. To provide in-home medical care, the organization has teamed up with Care24, Portea, CallHealth, Athulya Homecare, and Argala. Customers can use the company’s app or a toll-free number to access 100% cashless home healthcare facilities for a variety of infectious diseases. These services are offered for all 57 of Star Health’s products and will be deducted from the total amount insured.

Approximately ₹44,000 crore worth of claims have been authorized by Star Health since its founding in 2006. Ninety,000 agents, 116 branches, 187 rural branches, and more than 3,400 staff make up the company’s network. Focusing on digital technology, the organization has used the cashless mode to settle 88% of claims.

In order to meet its expansion objectives, Roy stressed that the company’s approach will be to take advantage of greater market penetration, particularly in tier II and III cities.