Galaxy Health aims to be a major health insurance player in 2-3 years: CEO

In March, Galaxy Health received approval from the insurance regulator to start a health insurance business in India, taking the total number of standalone health insurers in the country to seven

Galaxy Health and Allied Insurance Company (Galaxy Health), a recently launched standalone health insurer, plans to become a significant health insurance player in the next 2-3 years and aims to launch at least one product every month, totalling at least eight products by the end of FY25, said G Srinivasan, managing director (MD) and chief executive officer (CEO) of the company.

 

In the initial years, the company will focus on the South Indian states, he said, adding that the company’s focus will be on the retail health insurance and small and medium-sized enterprises (SME) segment to boost insurance penetration backed by multi-line distribution channels.

 

 

“We are in the process of setting up our offices, and our initial focus is on the southern states, primarily Tamil Nadu, followed by Karnataka, Andhra Pradesh, and Telangana in this financial year (FY25). We will enter Kerala in the next six months. So, even in the initial one or two years, the focus is on the southern states. Our strategy is to go to smaller towns in these states as there is substantial potential to be tapped in the health insurance segment,” Srinivasan said.

 

In March 2024, Galaxy Health received approval from the insurance regulator to start a health insurance business in India, taking the total number of standalone health insurers in the country to seven. The company, backed by TVS Group and the family of V Jagannathan with a capital of nearly Rs 300 crore, started business on Vijayadashmi by launching a product—Galaxy Promise—with sum insured options ranging from Rs 3 lakh to Rs 1 crore across three variants: Signature, Elite, and Premier, with enhanced optional covers.

 

Speaking on the rationale behind the new health insurance company, Srinivasan highlighted several pain points in the current health insurance system, including the need for comprehensive, relevant, and affordable products along with efficient customer service.

 

“Today, the biggest grievance of customers in health insurance is the difficulty people face in the claims process, and they often don’t receive the full claim amount. No health insurance claim is paid 100 per cent; there are always some deductions, which leave customers dissatisfied. Our philosophy is to address this issue, particularly the service aspect. We aim to resolve this. We will use technology to enhance efficiency, improve customer connections, and elevate the level of service provided,” Srinivasan said.

 

“As a company, we will focus on the retail health insurance space. We will also offer a small portion of group health, but our primary focus will be on the retail health segment, as we believe this is the best way to encourage people to take health insurance,” he added.

 

“On the group health side, we will focus on the SME segment, which is highly under-penetrated. Many SMEs do not have any health insurance. We will leverage our agents and brokers to enter the SME health insurance market. We plan to engage banks, corporate agents, and broking entities in the next few months as we progress in our journey,” Srinivasan said.

 

Currently, the insurer has 500 agents and 800 empanelled hospitals, primarily in Tamil Nadu. This network is expected to grow to 3,000-4,000 hospitals across the states in which it plans to operate by the end of FY25. “We will expand into the hinterland of the country. We will be a significant player in the next two to three years,” Srinivasan added.