 "Star Health & Allied Insurance eyes 18% GWP growth this financial year")
Star Health and Allied Insurance, India’s largest standalone health insurance company, is expecting an 18 per cent growth in gross written premium (GWP) to Rs 18,000 crore during the current financial year from Rs 15,254 crore in 2023-24, said a top company executive.
This growth is despite the massive data leak it faced this year.
The leak reportedly compromised the data of its customers.
“It is unfortunate that such incidents are affecting the insurance sector. It is a learning experience for the industry. We took the right legal steps when we became aware of this. It has definitely not affected our growth. We are lucky to have understanding distributors and customers. We grew at 17 per cent during the first half and expect to grow at 18 per cent for the entire year, reaching Rs 18,000 crore,” Anand Roy, managing director (MD) and chief executive officer (CEO) of Star Health Insurance, told Business Standard.
The company expects to touch the Rs 30,000 crore mark in terms of GWP by FY28. It also wants to increase its net profit multifold from Rs 845 crore last financial year to Rs 2,500 crore by FY28.
GWP is the total direct and assumed premium written by an insurer before deductions for reinsurance and ceding commissions.
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“Only a limited amount of data was in the public domain. We have taken multiple measures to strengthen our security, so that such events don’t happen again. We did not allow our company’s operations to be affected, including customer services,” Roy clarified when asked about the hacking incident.
Last week, the Insurance Regulatory and Development Authority of India (Irdai) issued a show-cause notice to the company regarding violations of norms.
Roy said these were issues highlighted by the regulator based on its general inspection conducted in 2022, and the company would soon be responding to the notice.
Star Health reported an 11 per cent drop in profit after tax (PAT) to Rs 111 crore during the quarter ended September 30 from Rs 125 crore in the corresponding quarter last year.
“The industry is witnessing a higher level of medical inflation this year. This may also be due to the extended monsoon that we witnessed in several parts of the country,” he said, when asked about the Q2 numbers.
On Tuesday, Star Health announced the launch of its revolutionary retail health insurance product, ‘Super Star’. This innovative scheme offers a long-term policy for the retail health segment, combining advanced features and highly customisable covers. It is to address the growing complexities of modern lifestyles, rising medical expenses, and unforeseen emergencies.
“The product will be available to all customer demographics, and its millennials who have been looking for greater personalisation. Super Star addresses this growing need among our customers by offering limitless options, affordability, family discounts, and long-term benefits, making it ideal for young families. With features like Quick Shield and long-term tenure, we aim to provide comprehensive and highly customisable coverage for India’s evolving healthcare needs,” Roy added.
The plan also includes discounts for the addition of family members to the policy.
Star Health has a strong distribution network, including 902 offices, over 30,000 healthcare providers, 742,000 agents, and robust bancassurance partnerships. The company claims it is also the first in India to settle over 10 million claims.